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Ordinary repairs should be recognized when incurred as revenue expenditures.
Answer:
Give the definition of current assets and current liabilities and provide two examples of
each.
Answer:
The accounting equation for Quattro Enterprises is as follows:
If Quattro purchases office equipment on account for $25,000, the accounting equation
will change to
Answer:
Prepare the entry to replenish the $200 petty cash fund of Erin Company, assuming the
fund has receipts for: freight-out $60, postage $105, and miscellaneous expense $25.
The fund contains $8 in cash.
Answer:
Bond interest paid by a corporation is an expense, whereas dividends paid are not an
expense of the corporation.
Answer:
On July 6, Clayton Corporation issued 3,000 shares of its $50 par common stock. The
market price of the stock on that date was $18 per share. Journalize the issuance of the
stock.
Answer:
The cost of a patent should be amortized over its legal life or useful life, whichever is
shorter.
Answer:
Debit and credit can be interpreted to mean increase and decrease, respectively.
Answer:
The accounting cycle begins at the start of a new accounting period.
Answer:
Plexis Company reported net income of $148,000. For 2014, depreciation was $45,000,
and the company reported a gain on sale of investments of $12,000. Accounts
receivable increased $25,000 and accounts payable decreased $23,000.
Instructions
Compute net cash provided by operating activities using the indirect method.
Answer:
