expenses.3. Accounts often need to be adjusted becausea. there are never enough accounts to record all the transactions.b. many transactions affect more than one time period.c. there are always errors made in recording transactions.d. management can't decide what they want to report.4. The most important information needed to determine if companies can pay their currentobligations is thea. net income for this year.b. projected net income for next year.C. relationship between current assets and current liabilities.d. relationship between short-term and long-term liabilities.5. The journal entry to record a return of merchandise purchased on account under aperpetual inventory system would credita. Accounts Payable.b. Purchase Returns and Allowances.C. Sales.d. Merchandise Inventory.EFocus

The adjustment to accounts often require because most enterprises often fallow accrual method of…

3. Accounts often need to be adjusted because a. there are never enough accounts to record all the transactions. b. many transactions affect more than one time period. c. there are always errors made in recording transactions. d. management can't decide what they want to report. The moot impo

3. Accounts often need to be adjusted because a. there are never enough accounts to record all the transactions. b. many transactions affect more than one time period. c. there are always errors made in recording transactions. d. management can't decide what they want to report. The moot impo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

expenses.
3. Accounts often need to be adjusted because
a. there are never enough accounts to record all the transactions.
b. many transactions affect more than one time period.
c. there are always errors made in recording transactions.
d. management can't decide what they want to report.
4. The most important information needed to determine if companies can pay their current
obligations is the
a. net income for this year.
b. projected net income for next year.
C. relationship between current assets and current liabilities.
d. relationship between short-term and long-term liabilities.
5. The journal entry to record a return of merchandise purchased on account under a
perpetual inventory system would credit
a. Accounts Payable.
b. Purchase Returns and Allowances.
C. Sales.
d. Merchandise Inventory.
EFocus

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