Why are adjusting entries necessary in an accrual accounting system? What are some common examples?
What will be an ideal response?
An adjusting entry is an entry that updates account balances prior to preparing financial statements. Adjusting entries record revenues and expenses that should be recognized in the current accounting period, but have not yet been recorded. Some common adjusting entries include recognizing accrued salaries expense, the expenses that arise through the use of prepaid items, such as supplies and prepaid rent, as well as recognizing revenue that had been previously unearned.
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Roberts Enterprises has budgeted sales in units for the next five months as follows: June4,500units??July7,100unitsAugust5,300unitsSeptember6,700unitsOctober3,700units?Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 410 units. The company needs to prepare a production budget for the second quarter of the year.?The desired ending inventory for August is:
A. 370 units B. 710 units C. 670 units D. 530 units
Which of Hofstede’s dimensions measure values, such as perseverance, respect for tradition, and thrift?
a. Low uncertainty b. Long-term orientation c. High power distance d. Short-term orientation
To be a valid written security agreement, it must:
A) Clearly identify the collateral. B) Contain the debtor's promise to repay the creditor. C) Set forth the creditor's rights upon default. D) All of the above.
This table contains the performance criteria and scores (larger numbers are better) for four potential suppliers to Satriale's Pork Store. Evaluate the data and identify the BEST source for Satriale's
Consider the two runners-up to the best source and what points of negotiation might lead them to becoming the optimal supplier. Performance Dimension Company T Company C Company S Company P Innovation (W = 0.4) 4 4 2 5 Cost (W = 0.3) 4 3 5 2 Stability (W = 0.2) 2 1 4 5 Speed (W = 0.1) 3 5 5 2 What will be an ideal response?