If a company records prepayment of expenses in an asset account, the adjusting entry when all or part of the prepaid asset is used or expired would:
A. Result in a debit to a liability and a credit to an asset account.
B. Result in a debit to an expense and a credit to an asset account.
C. Cause an accrued liability account to exist.
D. Cause an adjustment to prior expense to be overstated and assets to be understated.
E. Decrease cash.
Answer: B
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If Brazil levies a tariff on oil that is so high that it effectively prohibits imports of oil, the tariff has
a. only a protective effect. b. only a revenue effect. c. both a revenue effect and a protective effect. d. no effect on trade.
Answer the following statements true (T) or false (F)
It is no less true under SFAS No. 13 than it was under ARB 38 that more leases are being capitalized than should be.
What generation is considered to be the most exposed to entrepreneurship education?
a. Baby Boomers b.Generation X c. Millennials d. Generation Z
Mcquage Corporation has provided its contribution format income statement for July. Sales$558,000Variable expenses 306,900Contribution margin 251,100Fixed expenses 209,800Net operating income$41,300 Required: a. Compute the degree of operating leverage to two decimal places.b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 19% increase in sales.
What will be an ideal response?