[APPENDIX] When the owner of a sole proprietorship withdraws assets from the business for personal use
a. it is treated like a noncash dividend.
b. it is illegal because the assets belong to the separate entity, the proprietorship.
c. it would be recorded as a loss by the proprietorship.
d. it is recorded as a reduction of owner's equity.
d
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In the context of fundamental principles of a free market system, which of the following statements is true of a supply curve?
A. It shows the relationship between price and quantity from a supplier standpoint. B. For most goods and services, it forms a sinusoidal curve. C. It shows the relationship between supply and quantity from a buyer standpoint. D. For most goods and services, it slopes downward as it moves to the right.
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1. Costs incurred during an accounting period but unpaid and unrecorded are accrued expenses. 2. An adjusting entry often includes an entry to Cash. 3.Before an adjusting entry is made to recognize the cost of expired insurance for the period, Prepaid Insurance and Insurance Expense are both overstated. 4. Before an adjusting entry is made to accrue employee salaries, Salaries Expense and Salaries Payable are both understated. 5. Failure to record depreciation expense will overstate assets and understate expenses.