The journal entry to record a note received from a customer to apply on account is
A) debit Notes Receivable; credit Accounts Receivable
B) debit Accounts Receivable; credit Notes Receivable
C) debit Cash; credit Notes Receivable
D) debit Notes Receivable; credit Notes Payable
A
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In any given accounting period, the amount a firm reports as income before income taxes for financial reporting in comparison to the amount of taxable income that appears on its income tax return may differ due to temporary differences. The temporary differences may create a deferred tax asset due to
a. providing for estimated warranty costs in the year a firm sells the warranted product but claiming a tax deduction later, when the firm makes actual expenditures for warranty repairs. b. reporting bad debt expense in the year a firm makes a credit sale, but claiming a tax deduction later, when the firm writes off specific uncollectible accounts. c. interest revenue on municipal bonds. d. choices a and b. e. choices a, b, and c.
Which statement about job order cost systems is false?
a. For a service business, a finished goods account is not necessary. b. A job order cost accounting system may be used for a professional service business. c. None of these statements is false. d. For a service business, Cost of Services is similar to the cost of merchandise sold account for a merchandising business.
In which of the following types of franchise does a franchisor provide a secret formula or process to the franchisee?
A) chain-style franchise B) area franchise C) distributorship franchise D) processing plant franchise
What are the consequences of not obtaining a letter of credit?
What will be an ideal response?