Adjusting entries for prepaid items typically include which of the following related types of accounts:
A. Expense and Liability accounts
B. Expense and Asset accounts
C. Revenue and Liability accounts
D. Revenue and Asset accounts
Answer: B
You might also like to view...
Equipment is purchased for $80,000 . It has an eight-year useful life and a $39,250 residual value. Under the double-declining-balance method, what is the depreciation expense for year 3?
a. $11,250 b. $5,250 c. $5,750 d. $6,250
Empirical evidence indicates that the market equity value of a multiple-segment firm generally is (i) than the sum of the imputed market values of its individual segments, a phenomenon called the (ii)
(i) __(ii)__ a. lower diversification discount. b. lower segment effect. c. higher diversification premium. d. higher segment effect.
Agile software development values individuals and interactions over processes and tools
Indicate whether the statement is true or false
Cannon Company has enjoyed a rapid increase in sales in recent years, following a decision to sell on credit. However, the firm has noticed a recent increase in its collection period. Last year, total sales were $1 million, and $250,000 of these sales were on credit. During the year, the accounts receivable account averaged $41,664 . It is expected that sales will increase in the forthcoming year
by 50 percent, and, while credit sales should continue to be the same proportion of total sales, it is expected that the days sales outstanding will also increase by 50 percent. If the resulting increase in accounts receivable must be financed by external funds, how much external funding will Cannon need? a. $41,664 b. $52,086 c. $47,359 d. $106,471 e. $93,750