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Match the items below by entering the appropriate code letter in the space provided.
1> A twelve month accounting period
2> Expenses paid before they are incurred
3> Cost less accumulated depreciation
4> Divides the economic life of a business into artificial time periods
5> Efforts are related to accomplishments
6> A contra asset account
7> Recognition of revenue when the performance obligation is satisfied
8> Revenues recognized but not yet received
9> Expenses incurred but not yet paid
10> A cost allocation process
Answer:
The more inventory a company has in stock, the greater the company's profit.
Answer:
Operating expenses + an increase in prepaid expenses '“ a decrease in accrued expenses
payable = cash payments for operating expenses.
Answer:
The account balances appearing on the trial balance [below) were taken from the
general ledger of Irick's Copy Shop at September 30.
Additional information for the month of September which has not yet been recorded in
the accounts is as follows:
[a] A physical count of supplies indicates $300 on hand at September 30.
[b] The amount of insurance that expired in the month of September was $200.
[c] Depreciation on equipment for September was $400.
[d] Rent owed on the copy shop for the month of September was $600 but will not be
paid until October.
Instructions
Using the above information, complete the worksheet on the following page for Irick's
Copy Shop for the month of September.
Answer:
Cash provided by operating activities fails to take into account that a company must
invest in new fixed assets just to maintain its current level of operations.
Answer:
