chapter 3

chapter 3 - John Rubinetti Professor Kravet Financial...

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John Rubinetti Professor Kravet Financial Accounting September 25, 2007 Chapter 3 Questions 3. (A) The only reason a shareholder would be recorded in the accounting records for dying would be if that person owned more than 5% of the shares, because they are considered a major shareholder. Then their shares would come into question. (B) Since the company purchased supplies on account the received the items as well as the debt. Supplies are assets and the money they now owe is a liability so the transaction must be recorded. (C) The company does not have to record the firing of an employee because they do not record the hiring of the employee so keeping that record would be impossible. The only time it may be recorded is if the employee was a major shareholder. (D) If a company decides to issue a divided then it must record it because it will show that the extra money went t shareholders. 8. Yes, Emily would be correct if she were talking about specific account of money. The favorable credit balance could go either way for different accounts. It is the same sing with a
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This note was uploaded on 04/29/2008 for the course AC 11 taught by Professor Kravet during the Fall '07 term at Fairfield.

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chapter 3 - John Rubinetti Professor Kravet Financial...

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