Homework Answers
Correct answer-----------Net income will be too low.
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If an asset is recorded as an expense by mistake then expense will be overstated which will understate net income hence income will be low for sure. The balance in assets will also be understated.
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If a company incorrectly records a payment as an expense instead of an asset, how will...
Porite Company recognizes revenue in the period in which it records an asset for the related...
Porite Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash. Porite's practice is an example of: Multiple Choice Cash basis accounting. o The matching principle. o Accrual accounting. o o Economic entity.
What is the primary difference between an asset and an expense? Multiple Choice An expense shows...
What is the primary difference between an asset and an expense? Multiple Choice An expense shows up on the balance sheet, while an asset shows up on the income statement Companies should try to maximize assets, while minimizing expenses. An asset is purchased in cash, while an expense is financed on account. An asset has future value, while an expense is used up in the current period. O Assets are temporary accounts, while expenses are permanent. An asset has a...
Rita's Rental Company records uncamed rent revenue on the income statement The rental company has incorrectly...
Rita's Rental Company records uncamed rent revenue on the income statement The rental company has incorrectly recorded a current on the come statement The rental company has incorrectly included a currentlasility on the income statement The rental company has incorrectly recorded alatility on the income statement The rental company has correctly accounted for rent revenue Question 14 2 pts Issuing common stock O reduces a company's liquidity. improves a company's liquidity has no effect on a company's solvency has no...
TB MC Qu. 17-58 Lynch Company had a net deferred tax asset of... Lynch Company had a net deferred tax asset of $68,136...
TB MC Qu. 17-58 Lynch Company had a net deferred tax asset of... Lynch Company had a net deferred tax asset of $68,136 at the beginning of the year, representing a net taxable temporary difference of $200,400 (taxed at 34 percent). During the year, Lynch reported pretax book income of $801,600. Included in the computation were favorable temporary differences of $20,400 and unfavorable temporary differences of $50,200. At the beginning of the year, Congress reduced the corporate tax rate to...
During the taking of its physical inventory on December 31, Almond upplies Company incorrectly counted its...
During the taking of its physical inventory on December 31, Almond upplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000. Indicate the balance sheet effects of the error on inventory, current assets, total assets and stockholders uity, Nisa indicate the income statement effects of the error on cost of goods sold, gross profit, and net income. For those boxes in which you must enter understatements or negative numbers na minus sign Amount of Misstatement...
1. 2. 3. A company failed to record unrealized gains of $37 million on its debt...
1.
2.
3.
A company failed to record unrealized gains of $37 million on its debt Investments classified as trading securities. Its tax rate is 30%. As a result of this error, total shareholders' equity would be (Round million answer to 2 decimal places.): Multiple Choice Understated by $25.90 million Understated by $37.00 million Understated by $11.10 million. Unaffected. A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warranties was...
8. Mary Neylon has trouble keeping her debits and credits equal. During a recent month, Mary...
8. Mary Neylon has trouble keeping her debits and credits equal. During a recent month, Mary made the following accounting errors: 12(Click the icon to view the accounting errors.) Print Read the requirements 13. Requirement 1. For each of these errors, state whether total debits equal total credits on the trial balance. For each error determine whether total debils are "Greater than">), "Equal to" (=), or "Less than" (<) total credits. a. Total debits Total credits b. Total debits (2)...
Colorado Rockers (CR) recognizes revenue when it records an asset for a related account receivable, rather...
Colorado Rockers (CR) recognizes revenue when it records an asset for a related account receivable, rather than when the account receivable is collected in cash. CR's practice is an example of: Multiple Choice Cash basis accounting. O The matching principle. O Accrual accounting. O Economic entity. The adjusted trial balance for Starbucks Electric Crane (SEC) Company at December 31, 2021, is presented below: Credit Debit 11,900 164,000 6,400 39,000 440,000 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation-equipment Accounts...
another choice is 1.98 which one is correct? A company had interest expense of $8,100, income...
another choice is 1.98
which one is correct?
A company had interest expense of $8,100, income before interest expense and income taxes of $19,400, and net income of $9,800. The company's times interest earned ratio equals: Multiple Choice Ο Ο Ο Ο
If a check correctly written and paid by the bank for $413 is incorrectly recorded in...
If a check correctly written and paid by the bank for $413 is incorrectly recorded in the company's books for $431, how should this error be treated on the bank reconciliation? Multiple Choice Subtract $18 from the bank's balance. Add $18 to the book balance. Add $18 to the bank's balance. Subtract $18 from the bank's balance and add $45 to the book's balance. Subtract $18 from the book balance. During the month of July, Clanton Industries issued a check...
Porite Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash. Porite's practice is an example of: Multiple Choice Cash basis accounting. o The matching principle. o Accrual accounting. o o Economic entity.
What is the primary difference between an asset and an expense? Multiple Choice An expense shows up on the balance sheet, while an asset shows up on the income statement Companies should try to maximize assets, while minimizing expenses. An asset is purchased in cash, while an expense is financed on account. An asset has future value, while an expense is used up in the current period. O Assets are temporary accounts, while expenses are permanent. An asset has a...
Rita's Rental Company records uncamed rent revenue on the income statement The rental company has incorrectly recorded a current on the come statement The rental company has incorrectly included a currentlasility on the income statement The rental company has incorrectly recorded alatility on the income statement The rental company has correctly accounted for rent revenue Question 14 2 pts Issuing common stock O reduces a company's liquidity. improves a company's liquidity has no effect on a company's solvency has no...
TB MC Qu. 17-58 Lynch Company had a net deferred tax asset of... Lynch Company had a net deferred tax asset of $68,136 at the beginning of the year, representing a net taxable temporary difference of $200,400 (taxed at 34 percent). During the year, Lynch reported pretax book income of $801,600. Included in the computation were favorable temporary differences of $20,400 and unfavorable temporary differences of $50,200. At the beginning of the year, Congress reduced the corporate tax rate to...
During the taking of its physical inventory on December 31, Almond upplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000. Indicate the balance sheet effects of the error on inventory, current assets, total assets and stockholders uity, Nisa indicate the income statement effects of the error on cost of goods sold, gross profit, and net income. For those boxes in which you must enter understatements or negative numbers na minus sign Amount of Misstatement...
1.
2.
3.
A company failed to record unrealized gains of $37 million on its debt Investments classified as trading securities. Its tax rate is 30%. As a result of this error, total shareholders' equity would be (Round million answer to 2 decimal places.): Multiple Choice Understated by $25.90 million Understated by $37.00 million Understated by $11.10 million. Unaffected. A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warranties was...
8. Mary Neylon has trouble keeping her debits and credits equal. During a recent month, Mary made the following accounting errors: 12(Click the icon to view the accounting errors.) Print Read the requirements 13. Requirement 1. For each of these errors, state whether total debits equal total credits on the trial balance. For each error determine whether total debils are "Greater than">), "Equal to" (=), or "Less than" (<) total credits. a. Total debits Total credits b. Total debits (2)...
Colorado Rockers (CR) recognizes revenue when it records an asset for a related account receivable, rather than when the account receivable is collected in cash. CR's practice is an example of: Multiple Choice Cash basis accounting. O The matching principle. O Accrual accounting. O Economic entity. The adjusted trial balance for Starbucks Electric Crane (SEC) Company at December 31, 2021, is presented below: Credit Debit 11,900 164,000 6,400 39,000 440,000 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation-equipment Accounts...
another choice is 1.98
which one is correct?
A company had interest expense of $8,100, income before interest expense and income taxes of $19,400, and net income of $9,800. The company's times interest earned ratio equals: Multiple Choice Ο Ο Ο Ο
If a check correctly written and paid by the bank for $413 is incorrectly recorded in the company's books for $431, how should this error be treated on the bank reconciliation? Multiple Choice Subtract $18 from the bank's balance. Add $18 to the book balance. Add $18 to the bank's balance. Subtract $18 from the bank's balance and add $45 to the book's balance. Subtract $18 from the book balance. During the month of July, Clanton Industries issued a check...
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