List the four basic types of accounts that require adjusting entries and give an example of each
1 . Prepaid expenses; example: prepaid insurance
2 . Unearned revenues; example: an attorney's retainer fee
3 . Accrued revenues; example: unpaid interest earned on a note receivable
4 . Accrued expenses; example: unpaid wages owed to employees
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Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines' second year depreciation under the units-of-production method.
A. $17,400. B. $18,379. C. $16,000. D. $20,880. E. $16,900.
The excess of current assets over current liabilities is referred to as working capital
Indicate whether the statement is true or false
Lewis is being interviewed by a panel of four interviewers. When answering questions, he should maintain contact only with the person who asks the question
Indicate whether the statement is true or false
Lee wants to begin importing athletic shoes under the corporate name Mercury, Inc. Mercury should include most of its corporate rules in
A. the articles of incorporation. B. the bylaws. C. the corporate charter. D. the minutes of the first meeting of the board of directors.