The ____________________ of accounting is a system in which revenues are recognized when payments are received and expenses are recognized when payments are made
Fill in the blank(s) with correct word
cash basis
100 ) The difference between accrual-based revenue and accrual-based expenses in the period the activity occurred is called ____________________.
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After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Zott, $45,000; Payne, $60,000; Tejada, $47,000 . If Tejada retired and withdrew $47,000 in settlement of his equity, the debit to his capital account would be in the amount of
a. $60,000. b. $58,000. c. $47,000. d. $94,000.
Ethical principles can change over time.
Answer the following statement true (T) or false (F)
Dan, Fran, and Stan want to establish and operate a mountain bike sales and rental shop. Dan
and Fran will be actively involved in the management of the business, but Stan is investing most of the money. The three of them do not want to form a corporation, but want to use a form of business, if possible, that will give limited liability to each of them. Which of the following is true? A) They could form either a limited liability company or possibly a limited liability partnership, and either of these would give limited liability to each of the three owners. B) They could form a limited liability company and each have limited liability, but if they formed either a limited partnership or limited liability partnership there would be at least one partner with unlimited liability. C) Because Dan and Fran will be actively managing the business, there is no form of business other than a corporation that will give them limited liability. D) They could each have limited liability in a properly formed limited partnership, limited liability partnership, or limited liability company.
Oxford Packing Company reported net sales in November of the current year of $1,000,000. At the beginning of November, the company reported beginning inventory of $368,000. Cost of goods purchased during November amounted to $217,500. The company reported ending inventory at the end of November of $226,750.The company's gross profit rate for November of the current year was:
A. 58.6% B. 35.9% C. 64.1% D. 81.2% E. 18.8%