Assuming prepaid expenses are originally recorded in balance sheet accounts, the adjusting entry to record use of a prepaid expense is:
A. Increase an asset; increase revenue.
B. Decrease a liability; increase revenue.
C. Increase an expense; decrease an asset.
D. Increase an expense; decrease a liability.
E. Increase an expense; increase a liability.
Answer: C
You might also like to view...
Which of the following would proponents of the standardized approach to advertising support?
A) unifying advertising around the globe B) adapting campaigns to a country's culture C) accepting the global-village argument D) focusing on a single medium of communication
On January 1, 2010, Walker Corporation has the following stockholders' equity accounts: Common Stock, $10 par $300,000 Retained Earnings 900,000 The fair market value of Walker's net identifiable assets on this date was equal to their book value. On January 1, 2010, Rau Corporation acquired 100 percent of the common stock of Walker Corporation for $1,320,000 cash. The elimination entry necessary
to prepare a consolidated balance sheet for this date is: a. Common Stock(Walker) 300,000 Retained Earnings(Walker) 900,000 Goodwill 120,000 Investment in Walker Corporation(Rau) 1,320,000 b. Common Stock(Walker) 300,000 Retained Earnings(Walker) 900,000 Loss from Consolidation 120,000 Investment in Walker Corporation (Rau) 1,320,000 c. Common Stock(Walker) 300,000 Retained Earnings(Walker) 900,000 Investment in Walker Corporation (Rau) 1,200,000 d. Common Stock(Walker) 300,000 Retained Earnings(Walker) 900,000 Gain from Consolidation 120,000 Investment in Walker Corporation (Rau) 1,320,000
Once established, company cultures can be perpetuated by
A. relying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors. B. making cultural values and beliefs the centerpiece of the company's competitive strategy. C. avoiding frequent or dramatic reorganizations that could disturb existing relationships and networking among departments and company personnel. D. rewarding departments that observe cultural norms with above-average budget increases and penalizing those who don't with budget cuts. E. making adherence to cultural beliefs and cultural norms the defining features of the company's strategic vision.
Which of the following can be negotiable?
a. A promissory note that states, "Pay to Floyd Burchett $3000 on September 1, 2015." b. A check written on the standard check form that does not state the date it was issued. c. A promissory note from Farmer Douglas to Hainey Seeds, Inc. promising to pay for the seed purchased in the spring with bushels of grain harvested in the fall. d. An oral promise to pay to the order of Justin $500 on demand.