The adjusting entry used to record the estimated bad debts in the period credit sales occur decreases:
A. net income and increases liabilities.
B. assets and increases liabilities.
C. both selling expenses and net income.
D. both net income and net accounts receivable.
Answer: D
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Smithson is a small, privately-held company and therefore has no current requirement to issue financial statements using GAAP. The accountant has been utilizing a cash budgeting system in which a schedule of predicted cash sources and cash needs is
prepared at the end of each week for the following week. The company is considering whether a statement of cash flows would also be useful. Required: Explain the benefits that might be expected from a statement of cash flows and whether those are different from the benefits of a cash sources and cash needs listing.
The Davis-Bacon Act covers
A. executive, professional, and administrative occupations that are exempt from FLSA coverage. B. all private retail firms in the United States that receive no federal funds. C. manufacturing units that employ more than 2,000 employees. D. all government contractors receiving $10,000 or more in federal funds. E. construction contractors receiving federal money of more than $2,000.
What is a company's unique responsibility to its stockholders?
A) to make a profit B) to produce products that the public will find useful C) to provide jobs to workers D) to create a stable balance sheet between income and expenses E) to be a good corporate neighbor
A(n) ____ relationship exists between a firm's liquid asset balance and shortage costs
A) unified B) positively correlated C) inverse D) linear