MGT120H5 Study Guide - Midterm Guide: Income Statement, Book Value, Accounts Payable
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MGT120H5 Full Course Notes
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B: d, a, b, b, d, a, d. Solutions - mgt120 test#1 february 10, 2016. Deferral prepaid rent or insurance, office supplies, unearned revenue. Accrual salaries expense, interest expense, revenue earned but not received. Depreciation depreciation expense on a long-lived asset such as buildings, equipment, etc. Deferral- is expense paid or revenue collected in advance but not yet incurred or earned. Accrual is an expense incurred or revenue generated but not recorded. Accumulated depreciation (12,000/ 48 months x 10 months) 124 (see calculation) (see calculation) (see calculation) other liabilities (see calculation) 2: classified balance sheet assets and liabilities are classified as current or long term to indicate their relative liquidity. Liquidity measures how quickly an item can be converted to cash. This information is useful to investors and creditors. Depreciation expense is an expense account with a normal debit balance and is reported on the income statement as part of the operating expenses.
