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The process of entering an amount on the left side of an account is called
____________ the account, and making an entry on the right side is called
_________________ the account.
Answer:
An aging of accounts receivable schedule is based on the premise that the longer the
period an account remains unpaid, the greater the probability that it will eventually be
collected.
Answer:
The adjustments on a worksheet can be posted directly to the accounts in the ledger
from the worksheet.
Answer:
The adjusted trial balance columns of a worksheet are obtained by
subtracting the adjustment columns from the trial balance columns.
Answer:
If a plant asset is sold at a gain, the gain on disposal should reduce the cost of goods
sold section of the income statement.
Answer:
When a prepaid expense is initially debited to an expense account, expenses and assets
are both overstated prior to adjustment.
Answer:
The dividends account is a subdivision of the retained earnings account and appears as
an expense on the income statement.
Answer:
Equipment with an invoice price of $20,000 was purchased and freight costs were $900.
The cost of the equipment would be $______________.
Answer:
Requiring employees to take vacations is a weakness in the system of internal controls
because it does not promote operational efficiency.
Answer:
The comparative balance sheet for Lane Company appears below:
The income statement for the year is as follows:
Cash dividends of $15,000 were paid during the year. Land costing $15,000 was
acquired by the issuance of common stock. The property was subsequently sold for
$17,500 cash.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2015 using the
indirect method.
Answer:
