Which of the following accounts is used only at the close of the accounting period to adjust the merchandise inventory account and summarize the temporary owner's equity accounts?
a. Capital; b. Income Summary;
c. Insurance Expense; d. Drawing; e. Unearned Revenue
B
You might also like to view...
A low market-penetration index indicates ________
A) it will be expensive for the firms to attract the few remaining prospects B) substantial growth potential for all firms C) the rival firms try to capture greater market share by lowering their product price D) the profit margins of the firms decline E) the firms cannot raise demand substantially by raising its market expenditure
Recognizing tax benefits in a loss year due to a loss carryforward requires
a. only a footnote disclosure. b. creating a new carryforward for the next year. c. creating a deferred tax asset. d. creating a deferred tax liability.
When proofreading, reading a document from right to left is recommended because it helps the writer focus on individual words and spacing elements within the text
Indicate whether the statement is true or false
Everything else equal, in which of the following situations will a firm generally have a high dividend-payout ratio?
A. The existence of the impairment of capital rule. B. The firm's stockholders prefer capital gains rather than current income. C. The firm's senior management wishes to limit the number of investors who own the company's stock. D. The firm has excess cash after purchasing all acceptable independent capital budgeting projects. E. The firm's bond indentures severely restrict the amount of earnings that can be distributed each year.