The Family Dental Corporation prepays the rent on its dental office. On July 1, the corporation paid $18,000 for 6 months of rent How much Rent Expense should Family Dental Corporation record the three months ended September 30 under the cash basis? Why? What will be an ideal response ANSWER Family Dental should report Rent […]
Date: September 2nd, 2020
Which of the following accounting terms assumes that a business’s activities can be divided into small segments and that financial statements can be prepared for specific periods, such as a month, quarter, or year? A) adjusting entry concept B) economic entity concept C) matching principle D) time period concept ANSWER D
Date: September 2nd, 2020
What is the difference between cash basis accounting and accrual basis accounting? What will be an ideal response ANSWER Cash basis accounting records revenues only when cash is received and expenses only when cash is paid. Accrual basis accounting records revenues when earned and expenses when incurred.
Date: September 2nd, 2020
The T-account is a summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits posted on the right side of the vertical line. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following statements is true of the Common Stock account? A) It is an equity account that has a normal credit balance. B) It is a liability account that has a normal credit balance. C) It is a liability account that has a normal debit balance. D) It is an equity account that […]
Date: September 2nd, 2020
In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the total increases are $5,400 and the total decreases are $2,100. This means that the ending balance of the account is a credit balance of $3,300. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
For Office Supplies, the category of account and its normal balance is ________. A) liabilities and a debit balance B) assets and a debit balance C) liabilities and a credit balance D) assets and a credit balance ANSWER B
Date: September 2nd, 2020
List and briefly discuss three accounting concepts and principles that apply to accrual basis accounting. What will be an ideal response ANSWER 1. Time period concept — A business’s activities can be sliced into small time segments and financial statements can be prepared for specific periods of time. 2. Revenue recognition principle — Revenue is […]
Date: September 2nd, 2020
The Brighton Dental Corporation prepays the rent on its dental office. On July 1, the corporation paid $18,000 for 6 months of rent How much Rent Expense should Brighton Dental Corporation record the three months ended September 30 under the accrual basis? Why? What will be an ideal response ANSWER Brighton Dental should report Rent […]
Date: September 2nd, 2020
For Expenses, the category of account and its normal balance is ________. A) equity and a credit balance B) assets and a debit balance C) assets and a credit balance D) equity and a debit balance ANSWER D
Date: September 2nd, 2020
