In the space below, state whether each situation is a deferral or an accrual. ______
a. Depreciation on machinery is $7,200 for the accounting period.
______ b. Interest that has been incurred on a loan but that has not yet been paid or recorded is $675.
______ c. Office supplies of $965 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $640 . At the end of the period, $120 in office supplies remained.
______ d. Commissions amounting to $975 were earned but not yet collected by year end.
______ e. Prepaid Rent had a $2,500 balance prior to adjustment. By year end, 50 percent had expired.
______ f. Federal income taxes for the year were estimated to be $4,680.
a. Deferral d. Accrual
b. Accrual e. Deferral
c. Deferral f. Accrual
You might also like to view...
What is net realizable value? How is net realizable value affected when a receivable is written off under the allowance method?
What will be an ideal response
Under the resource-based view of a business firm, a firm's resources can be a source of sustained competitive advantage if they are valuable, rare, and perfectly imitable by competitors
a. True b. False Indicate whether the statement is true or false
Product costs are reported:
A. on the balance sheet before goods are sold, and on the income statement after goods are sold. B. only on the income statement. C. on the income statement before goods are sold, and on the balance sheet after goods are sold. D. only on the balance sheet.
Napoli Industries had net income for Year 2 of $650,000. Napoli had an average number of shares outstanding at the end of the year of 500,000 shares. On January 1, Year 2, the market price of Napoli's stock was $20 per share. On December 31, Year 2, the market price was $22 per share. What is the price-earnings ratio for Napoli at the end of Year 2?
A. 16.9 B. 15.4 C. 16.2 D. None of these answer choices is correct