Statements that show the effects of proposed transactions as if the transactions had already occurred are called
Pro forma statements
On April 1, 2007, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2007?
Accounts payable appear on which of the following statements?
statement of owner's equity
statement of cash flows
Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:
debit Office Supplies $105 and credit Office Supplies Expense $105
debit Office Supplies Expense $105 and credit Office Supplies $105
debit Office Supplies Expense $254 and credit Office Supplies $254
debit Office Supplies $254 and credit Office Supplies Expense $254
The recurring steps performed each accounting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:
Determine the net income of a company for which the following information is available for the month of May
Two common subgroups for liabilities on a classified balance sheet are
current liabilities and intangible liabilities
present liabilities and operating liabilities
general liabilities and specific liabilities
current liabilities and long-term liabilities
represents the amount of assets owners put into a business
equals assets minus liabilities
is the excess of revenues over expenses
A company purchased a new truck at a cost of $42,000 on July 1, 2008. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2008?
If assets are $99,000 and liabilities are $32,000, then equity equals:
Discuss how accrual accounting enhances the usefulness of financial statements.
What is the usual order in which financial statements are prepared from the adjusted trial balance? Why are they prepared in that order?