Answer the Following questions
Solution
Answers:
1) C = The net income will be over stated. (As an expense was not recognised)
2) C = Is an internal document that helps summarize data for the preparation of financial statements.
3) D = Balance sheet assets understated, equity understated. Income statement revenues understated.
4) B = account balances after adjustments
5) A = Salaries Expense 120. Salaries payable 120
6) A = Recording the usage of office supplies during the year
7) C = Updating the accounts at the end of the period.
8) B = Revenue to be recorded only after the business has earned it.
9) B = Service revenue of $400
10) A = Accrual accounting records revenue only when it is earned.
I hope my solution solves your query.
Regards.
.
Answer the Following questionsSolutionAnswers- 1) C - The net income w.docx
1. Answer the Following questions
Solution
Answers:
1) C = The net income will be over stated. (As an expense was not recognised)
2) C = Is an internal document that helps summarize data for the preparation of financial
statements.
3) D = Balance sheet assets understated, equity understated. Income statement revenues
understated.
4) B = account balances after adjustments
5) A = Salaries Expense 120. Salaries payable 120
6) A = Recording the usage of office supplies during the year
7) C = Updating the accounts at the end of the period.
8) B = Revenue to be recorded only after the business has earned it.
9) B = Service revenue of $400
10) A = Accrual accounting records revenue only when it is earned.
I hope my solution solves your query.
Regards.
