Assume that $18,000 cash is paid for insurance to cover the next year. The appropriate debit and credit would be:
A. Debit Prepaid Insurance $18,000, credit Insurance Expense $18,000.
B. Debit Insurance Expense $18,000, credit Prepaid Insurance $18,000.
C. Debit Cash $18,000, credit Prepaid Insurance $18,000.
D. Debit Prepaid Insurance $18,000, credit Cash $18,000.
Answer: D
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When companies reposition their products and themselves as "green," they are trying to indicate that:
A) they are socially and environmentally conscious. B) their products are of best quality. C) they provide the best "value" for money. D) their products are for upper class customers.
Answer the following statements true (T) or false (F)
1) A company discovers that its cost of goods sold is understated by an insignificant amount. It does not need to correct the error because of the conservatism principle. 2) The accounting principles followed for a $5,000 cost in a small company must be the same as the accounting principles followed for a $5,000 cost in a large company. 3) Properly recording inventory when sold and removing the units sold from the inventory count will prevent a company from running out of inventory. 4) Maintaining good controls over merchandise inventory ensures that inventory purchases and sales are properly authorized and accounted for by the accounting system. 5) Ending inventory is calculated by multiplying the number of units on hand by the unit cost.
The federal government grants patents for
a. 10 years. b. 20 years. c. 40 years. d. the useful life of the patent.
The average scope of influence that an individual has is between 50 and 100 people
Indicate whether the statement is true or false