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much should the company report as office supplies expense for
the year?
Question 8. Question :
An account linked with another
account that has an opposite normal balance and that is
subtracted from the balance of the related account is a(n):
Question 9. Question :
The Income Summary account is
used:
To adjust and update asset and liability accounts
To close the revenue and expense accounts
To determine the appropriate dividend amount
In some situations to replace the income statement
To replace the retained earnings account in some businesses
Question 10. Question :
The accrual basis of accounting:
Is generally accepted for external reporting since it is more
useful for most business decisions
Is flawed because it gives complete information about cash
flowsRecognizes revenues when received in cash
Recognizes expenses when paid in cash
Eliminates the need for adjusting entries at the end of each
period Question 11. Question :
On April 1, 2011, a
company paid the $1,350 premium on a three-year insurance
policy with benefits beginning on that date. What will be the
insurance expense on the annual income statement for the year
ended December 31, 2011?
Question 12. Question :
The main purpose of adjusting
entries is to:
Record external transactions and events
Record internal transactions and events
Recognize assets purchased during the period
Recognize debts paid during the period
Correct errors