Answer the following statements true (T) or false (F)
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.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. TRUE
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Indicate whether the statement is true or false.
The Houston-based energy company that filed for Chapter 11 bankruptcy and whose business
conduct is one of the grossest examples of corporate greed and fraud in America was: A) Mobil Oil Company. B) Enron Corporation. C) Shell Oil Company. D) Houston Oil and Gas Corporation. E) Exxon Corporation.
Value-stream mapping:
A) is a variation of time-function mapping. B) examines the supply chain to determine where value is added. C) extends time function mapping back to the supplier. D) starts with the customer and works backwards. E) All of the above are true.
Insider trading is the use of nonpublic information about a security to gain a profit
Indicate whether the statement is true or false.