The entry to close the Insurance Expense account at the end of the accounting period is to:
A) debit Retained Earnings and credit Prepaid Insurance
B) debit Prepaid Insurance and credit Retained Earnings
C) debit Insurance Expense and credit Retained Earnings
D) debit Retained Earnings and credit Insurance Expense
D
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Associations in UML Class Diagrams should include a description in which of the following situations?
A. Associations should always include descriptions. B. The decision criterion(a) affecting the process flow direction is not clear. C. The business purpose of the association is not clear. D. The attributes of the related class are not clear.
Which of the following terms best describes a distribution of the net income of a corporation to its owners?
A) Retained earnings B) Dividends C) Liquidation of assets D) Revenue
Describe the recording procedures for the issuance, retirement, and payment of interest for installment notes.
What will be an ideal response?
Match each term with the correct statement below.
a. operating activities b. investing activities c. financing activities d. current ratio e. quick ratio f. return-on-sales ratio g. return-on-equity ratio h. debt-to-equity ratio 1. A liquidity ratio that is also called the acid-test ratio 2. Activities identified on the statement of cash flows that include issuing new stock and paying dividends 3. A financial ratio that measures the firms ability to pay its long-term debts 4. A financial ratio that shows the strength of a company’s working capital 5. A financial ratio that measures the return the company earns on every dollar of investment 6. Activities identified on the statement of cash flows that indicate cash flow from the firm’s primary revenue-generating activities