*What is the result if the amount of Net Income for the year is less than the amount of the Owner's Withdrawals?
(Owner's Name, Capital decreases)
*Permanent accounts are not closed at the end of the accounting period.
*Which of the fol
The direct write-off method of accounting for uncollectible receivables is primarily used by small, non-public
The collection period of accounts receivable is usually long therefore it is classified as a long-term asset in the
In a periodic inventory system, the cost of goods sold account is continuously updated as and when sales occur.
When a company uses the perpetual inventory system, there is no need to conduct a physical count of inventory.
Martinez invested $9,000 in his new design business.
Paid the first month's rent of $800.
Purchased equipment by paying $3,000 cash and executing a note payable
Purchased Office Supplies f
*Prepaid rent is an expense account, and hence it appears on the income statement.
*The sum of all the depreciation expense recorded to date for a depreciable asset is called:
Gunnie Inc., located in Texas, records business transactions in dollars and disregards changes in the value of a
dollar over time. Which of the following accounting assumptions does this represent?
monetary unit assumption
The field of accounti
If the current replacement cost of inventory is less than its historical cost, the business must adjust the inventory value.
An overstatement of ending merchandise inventory in the current period results in an overstatement of net income i
A check for which a maker's bank account has inadequate money to pay the check is known as:
o A nonsufficient funds check.
Which of the following describes the internal control component "monitoring of controls?"
o Internal auditors monitor comp