Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.Increase = IDecrease = DNot Affected = NA(Note that "Not Affected" means that the event does not affect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in that same element.) Charles Company recognized payroll tax expense for the employer portion of FICA tax and federal and state unemployment taxes.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(NA) (I) (D) (NA) (I) (D) (NA)
Recognizing the employer portion of employment taxes increases liabilities (FICA tax payable and unemployment tax payable) and decreases stockholders' equity (retained earnings). It increases expense (payroll tax expense), which decreases net income. It does not affect the statement of cash flows until the taxes are paid.
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One overall goal for the formal leader should be to ______.
a. eliminate informal leaders from the group b. enable successful delegation of decision-making to followers c. become a laissez-faire leader d. convert most groups into virtual teams
The expense recognition (matching) principle does not aim to record expenses in the same accounting period as the revenue earned as a result of these expenses.
Answer the following statement true (T) or false (F)
What is a staple product?
a. office stationery b. a complementary product c. something that is essential for another product to work e.g. a keyboard for a PC d. something people always like to have and so purchase regularly e.g. soap e. a basic, unsophisticated product e.g. paper clips
What does granularity of a fact table describe?
What will be an ideal response?