Question

QUESTION 1 Financial accounting information is likely to be used for all of the following types of decisions except O a. deciding whether a potential customer should be allowed to purchase goods on a credit basis O b.determining whether the net earnings last year were satisfactory. O a appraising the ability of an entity to pay its debts when they become due. O d. deciding whether dividends should be increased. ho O e deciding whether to add a new product line. QUESTION 2 Steno Services, Inc. purchased a laptop PC for $400 and a new typist chair for $120, on account from Office Equipment Company. What journal entry is required? O a. Debit Assets, $520, credit Liabilities, $520. O b. Debit Office Machines, $400, and Office Fumiture and Fixtures $1120, credit Cash $520. O c. Debit Office Machines, $400, and Office Furniture and Fixtures. $120, credit Accounts Payable, $520. O d. Debit Office Machines $520, credit Notes Payable, $520 O e. Debit Office Machines, $400, credit Accounts Payable, $400.

Please answer both questions!!

Answer 1

If you like my explanation, please give a "thumbs up"

Question 1 Option e; Question 2 Option c is the correct answers.

A B С D E F G 1 2 3 Question 1: 4 Financial accounting information is used for options a,b,c,d, but not e Deciding whether to add a new product line. 5 6 7 For deciding whether add a new product line company should check market demand, cost of manufacturing, compititors, incremental profit etc., 00 9 10 Question 2: 11 12 13 Account title Office Machine Office Furniture and Fixtures Accounts Payable Debit Credit 400 120 520 14 15 16