1.Which of the following represents an accrual?A. Accumulated depreciation B. Fees earned C. Prepaid insurance D. Wages payable
2. If the adjustment for prepaid expenses is notrecorded A. Net income will be correctly stated B.assets will be understated C.net income will be overstated D. Expenses will be overstated
Related questions
At March 31, the end of the first month of operations, the usualadjusting entry transferring prepaid insurance expired to anexpense account is omitted. Which items will be incorrectly stated,because of the error, on (a) the income statement for March and (b)the balance sheet as of March 31? Also indicate whether the itemsin error will be overstated or understated.
a. Income Statement
| Insurance Expense | Select Overstated orUnderstated |
| Net Income | Select Overstated or Understated |
b. Balance Sheet
| Prepaid Insurance | SelectOverstatedUnderstatedCorrectItem 3 |
| Stockholders' Equity |
Bach Instruments had total assets of $560,000; total liabilities of $250,000; and total Stockholders' Equity of $310,000. Bach's debt ratio is
| 44.6%. | |||||||||
| 28.7%. | |||||||||
| 80.6%. | |||||||||
| 55.4%. The entry to record selling 300 shares of stated value $60 common stock for $70 per share would be
|
The Statement of Cash Flows reports the sources and uses of cash from all of the following EXCEPT
| financing activities. | |||||||||||||||||||||||||||||||||
| managerial activities. | |||||||||||||||||||||||||||||||||
| operating activities. On the Income Statement, the results of discontinued operations are reported
| |||||||||||||||||||||||||||||||||
| investing activities. What was the percentage of change in Accounts Receivable if the balance was $80,000 in 2013 and $60,000 in 2014?
In accounting, what is the meaning of capitalized?
|
The period end adjusting entry for bad debt expense under the allowance method is
| Cash, debit; Accounts Receivable/customer name, credit. | |
| not required. | |
| Bad Debt Expense, debit; Accounts Receivable/customer name, credit. | |
| Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit. |
Bach Instruments had total assets of $560,000; total liabilities of $250,000; and total Stockholders' Equity of $310,000. Bach's debt ratio is
| 44.6%. | |||||||||
| 28.7%. | |||||||||
| 80.6%. | |||||||||
| 55.4%. The entry to record selling 300 shares of stated value $60 common stock for $70 per share would be
|
The Statement of Cash Flows reports the sources and uses of cash from all of the following EXCEPT
| financing activities. | |||||||||||||||||||||||||||||||||
| managerial activities. | |||||||||||||||||||||||||||||||||
| operating activities. On the Income Statement, the results of discontinued operations are reported
| |||||||||||||||||||||||||||||||||
| investing activities. What was the percentage of change in Accounts Receivable if the balance was $80,000 in 2013 and $60,000 in 2014?
In accounting, what is the meaning of capitalized?
|
