uop acc 290 new,uop acc 290 new,uop acc 290 new complete course,uop a ACC 290 Final Exam NEW | Page 4

What is La More’s 2013 net income using cash basis
accounting?
$4,925
$675
$425
$5,175
Question 6
Which one of the following is not a justification for adjusting
entries?
Adjusting entries are necessary to bring the general ledger
accounts in line with the budget.
Adjusting entries are necessary to enable financial statements
to be in conformity with GAAP.
Adjusting entries are necessary to ensure that the revenue
recognition principle is followed.
Adjusting entries are necessary to ensure that the expense
recognition principle is followed.
Question 7
The Vintage Laundry Company purchased $6,500 worth of
laundry supplies on June 2 and recorded the purchase as an
asset. On June 30, an inventory of the laundry supplies indi-
cated only $1,000 on hand. The adjusting entry that should be
made by the company on June 30 is: