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

Business

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Which of the following would proponents of the standardized approach to advertising support?

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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

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Once established, company cultures can be perpetuated by

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Business

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.

Business