What is the imapct on the accoutning equation when a current month's utility expense is paid?

Q: What happens to revenue and deferred revenue as months progress

A: Revenue is income that is earned during a given period of time and is reported on the income…

Q: Define Prepaid rent.

A: Prepaid Expense:   It refers to the expenditure incurred by company that is paid in one accounting…

Q: Interest payable is shown on the? A)income statement B)balance sheet as a long term liability…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: The ratio that tells you how much income is used up by expenses is the Return on Assets ratio. True…

A: A financial ratio called return on assets (ROA) describes how lucrative a business is in comparison…

Q: What does the days’ sales in receivables indicate, and how is it calculated?

A: Day's Sales: Day's sales refer to the average number of days for which a receivable remain…

Q: What do you mean by Days Payable Outstanding (DPO)?

A: Definition:   Accounts payable: This is the amount owed for the suppliers, or expenses incurred.…

Q: beginning retained earnings

A: Beginning retained earnings is the opening balance of retained earnings of an accounting year. It is…

Q: In your own words, how should the results of installment sales be reported on the income statement?

A: When a supplier permits a consumer to spread out the payment for purchase over several years, they…

Q: Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95,…

A: Fixed expenses are those which do not change with the change in activity level. These are fixed at…

Q: How do you prepare annual financial statements?

A: In terms of accountancy, financial statements can be defined as the reports which provide the users…

Q: What is a prepaid expense and where is it reported in the financial statements?

A: Prepaid expense:   Prepaid expenses are any expenses that is paid before it becomes due. A prepaid…

Q: what should be withheld from a bonus in the year it is paid?

A: Explanation and correct answer is given below,

Q: By what amount will income (before taxes) be adjusted up or down as a result of the corrections?…

A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…

Q: How does the income statement differ from the balance sheet withregard to the time period reported?

A: A balance sheet is a statement which provides financial data related to the assets, liabilities and…

Q: Does every adjusting entry affect net income for a period? Explain.

A: Net income: Net income is the excess amount of revenue which is arises after deducting all the…

Q: The times interest earned ratio is computed as Oa. Income Before Income Tax + Interest Expense Ob.…

A: Times interest earned ratio depicts the ability of an entity to service its interest expense. It…

Q: How is Days to Collect A/R calculated?

A: Days to collect accounts receivable known as days sales in outstanding is calculated to know the…

Q: Net income or net loss is the difference between total revenue and total expenses over a specific…

A: Net income is the income earned by a business during a accounting period. Net income or loss is…

Q: find the average daily balance

A: The method which takes daily balances into consideration rather than weekly or monthly balances is…

Q: Which of the following are items which are likely need an accrual adjustment at the year end?

A: In order to recognize revenue or expense that has been earned or incurred but has not yet been…