Which of the following best describes a trial balance?
a. It is a required financial statement.
b. It is a financial statement that can be used in place of the income statement.
c. It is a numerical list of all accounts used by a company.
d. It is a tool used to prove the equality of debits and credits in the general ledger.
d
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Under the percentage of receivables method, the adjusting entry at the end of the period for bad debt expense is not affected by the current balance in the allowance for bad debts account
a. True b. False Indicate whether the statement is true or false
Describe approaches that retailers use in dealing with unprofitable customers.
What will be an ideal response?
Leonard Technologies invests $68,000 to acquire $68,000 face value, 10%, five-year corporate bonds on December 31, 2014. The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018?
A) a credit to Interest Revenue for $6800 B) a debit to Interest Revenue for $6800 C) a credit to Interest Revenue for $3400 D) a debit to Interest Revenue for $3400
A company that owns more than 50% of the common stock of another company is known as the
A) parent company. B) management company. C) subsidiary company. D) in-charge company.