A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:
A. $200 increase in net income.
B. An error in the financial statements.
C. $200 of prepaid insurance.
D. $200 decrease in net income.
E. $200 difference between the debit and credit columns of the Unadjusted Trial Balance.
Answer: D
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Susie has been tasked with examining attitudes and expectations of employees. She can accomplish this by conducting a cultural audit.
Answer the following statement true (T) or false (F)
Cycle counting:
A) is a process by which inventory records are verified once a year. B) eliminates annual inventory adjustments. C) provides a measure of inventory turnover. D) assumes that all inventory records must be verified with the same frequency. E) assumes that the most frequently used items must be counted more frequently.
Low income earners
A) may contribute additional amounts to an IRA under a catch-up provision. B) are not bound by contribution limits. C) may receive a tax credit based on contributions to an IRA D) can access there funds without incurring a tax penalty.
Which of the following is true in the creation of a general partnership?
A. The business name must include the names of all partners. B. The business name cannot be a fictitious name. C. The name selected by the partnership cannot indicate that it is a corporation. D. The business cannot operate under a trade name.