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Consistency in accounting means that a company uses the same accounting principles
from one accounting period to the next accounting period.
Answer:
On April 1, Sign Company buys 4,000 shares of Polk common stock for $61,500. On
October 1, Sign sells 1,000 shares of Polk stock for $20,500..
Instructions
Prepare journal entries for the purchase and sale of the Polk common stock.
Answer:
Intracompany comparisons of the same financial statement items can often detect
changes in financial relationships and significant trends.
Answer:
When the periodic payments are not equal in each period, the future value can be
computed by using a future value of an annuity table.
Answer:
A primary objective of the statement of cash flows is to show the income or loss on
investing and financing transactions.
Answer:
Control accounts are always located in the general ledger.
Answer:
The discount on bonds payable or premium on bonds payable is shown on the balance
sheet as an adjustment to bonds payable to arrive at the carrying value of the bonds.
Indicate the appropriate addition or subtraction to bonds payable:
Answer:
In general, adjusting entries are required each time financial statements are prepared.
Answer:
