If goods are shipped FOB shipping point, the seller does not record revenue from the sale until the goods arrive at their destination because the transaction is not complete until that point.
Answer the following statement true (T) or false (F)
False
You might also like to view...
When we try to experience the world through the eyes of another person by recreating that person’s perspective, we are engaging in which of the following?
A. sympathy B. empathy C. selective attention D. indiscrimination
If state laws specify minimum wages, in addition to the federal level, employees are entitled to receive whichever rate is higher.
Answer the following statement true (T) or false (F)
Email has made business communication inexpensive, virtually instantaneous, and—most important—far less __________
a. interesting b. time consuming c. trustworthy d. reliable
Prepayments for Julianna Company decreased by $2,000 during Year 3, the firm expensed less cash during Year 3 for new prepayments than it expensed prepayments of earlier years. Assume that all prepayments relate to selling and administrative activities. The journal entries that Julianna Corporation made in the accounting records during the year had the following combined effect: Selling and
Administrative Expenses . . . . . . . . . . . . . . 35,500 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,500 Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 To explain the change in the statement of cash flows T-account work sheet for Prepayments a. add back $33,050 to net income. b. add back $2,000 to net income. c. subtract $2,000 from net income. d. subtract $33,500 from net income. e. subtract $2,000 from retained earnings.