Which of the following shows how a payment made to settle an accrued expense, such as salaries payable, will affect a company's financial statements?a.b.C.d.Balance SheetAssets = Liabilities + Equity Revenuen/an/an/an/an/an/aMultiple ChoiceOption BOption COption AOption Dn/aIncome Statementn/aExpense =n/an/an/an/aNetincomen/an/an/an/aStatement of CashFlows-FinancingActivityn/a-OperatingActivity-InvestingActivity

Payment of accrued expense reduce cash balance (asset). Accrued expense is a liability that needs to…

Which of the following shows how a payment made to settle an accrued expense, such as salaries payable, will affect a company's financial statements? Income Statement a. b. C. d. Balance Sheet Assets Liabilities + Equity n/a n/a n/a Multiple Choice Option B Option C Option A Option D n/a Revenue n/a n/a n/a n/a Expense = n/a n/a n/a n/a Net income n/a n/a n/a n/a Statement of Cash Flows -Financing Activity n/a -Operating Activity -Investing Activity

Which of the following shows how a payment made to settle an accrued expense, such as salaries payable, will affect a company's financial statements? Income Statement a. b. C. d. Balance Sheet Assets Liabilities + Equity n/a n/a n/a Multiple Choice Option B Option C Option A Option D n/a Revenue n/a n/a n/a n/a Expense = n/a n/a n/a n/a Net income n/a n/a n/a n/a Statement of Cash Flows -Financing Activity n/a -Operating Activity -Investing Activity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE

A: Debt is the liability incurred by the company by borrowing for its financial needs.

Q: Calculate Earning Per Share You remember that the New York Bakery retired 224,812 shares in 2021.…

A: Return on stockholder's equity (ROE) is a financial measure that shows percentage of return owners…

Q: Please answer with reason for all why the option is correct and why the other options are…

A: The correct option is C. Share application account.Explanation:When money is received at the time of…

Q: Match each of the items below with its most appropriately-related “letter” classification. (“Letter”…

A: As per the company policy, since you have posted a question with multiple sub-parts, we will solve…

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

A: Definition: Equity method: Equity method is the method used for accounting equity investments…

Q: Match each of the items below with its most appropriately-related “letter” classification. (“Letter”…

A: Since the question has more than 3 sub-parts, the first 12 subparts are answered. If you want the…

Q: Which of the following is NOT a component of Accumulated Other Comprehensive Income? A. Gains or…

A: Other comprehensive income (OCI) includes any unrealized gains or losses from sources of funds from…

Q: Which of the following shows how the year-end adjustment to recognize supplies expense will affect a…

A: Supplies Expense :— It is an expense account. It means purchase of inventory. Year end adjustment…

Q: Which of the alternatives results from the accrual of interest: a.Increase in liabilities and…

A: Expenses are accrued when these are incurred but are not paid. Due to the accrual concept, all the…

Q: The equity method of accounting for investments requires a.the investment to be increased by the…

Q: The required return on the debt e.The required return on the company (i.e., stock and debt…

A: 1) Computed in Step 3 in main section- Required return=10% 2) Computed in Step 4 in main section-…

Q: Balance Sheet ClassificationA balance sheet contains the following classifications:(a) Current…

A: Balance Sheet Classification: Assets Liabilities and Stockholders equity (a) Current assets…

Q: even meun The following data were taken from the financial statements of Woodwork Enterprises Inc.…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Answer the following questions: Define and discuss the term "equity" What financial statement…

A: Equity: The value that would be restored to the shareholders of a firm in the event that all of the…

Q: The Debt to Equity ratio calculation measures Group of answer choices c. How much debt the company…

A: Debt-to-Equity Ratio refers to the relative proportion of debt and equity to finance the assets of…

Q: What is the difference between a Stock Account and in equity and Paid-in-Capital account? Are they…

A: Step1: Difference between stock account, equity account and paid-in capital account. We have,Stock…

Q: Which of the following liabilities should always be included in the debt calculations for a firm?…

A: Liability is an amount owned to others.

Q: What statements do the following items go on?1) Treasury Stock2) Amortization Expense3) Preferred…

A: 1. Treasury Stock is a own stock purchased deducted from Statement of Stockholder's equity. Hence,…

Q: Match the following terms or phrases in (a–g) with the explanations in 1–8. Terms or phrases may be…

A: US GAAP defines contingent liabilities as: Any potential future loss that depends on a "triggering…

Q: Which of the following shows how purchasing supplies for cash will affect a company's financial…

A: Financial statements are the final statements which are prepared at the end of the period in order…

Q: Indicate where each of the following items is reported on financial statements. Choose from the…

A: Financial statement: Financial statements are condensed summary of transactions communicated in…

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

100%

Which of the following shows how a payment made to settle an accrued expense, such as salaries payable, will affect a company's financial statements?
a.
b.
C.
d.
Balance Sheet
Assets = Liabilities + Equity Revenue
n/a
n/a
n/a
n/a
n/a
n/a
Multiple Choice
Option B
Option C
Option A
Option D
n/a
Income Statement
n/a
Expense =
n/a
n/a
n/a
n/a
Net
income
n/a
n/a
n/a
n/a
Statement of Cash
Flows
-Financing
Activity
n/a
-Operating
Activity
-Investing
Activity

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl ected in shareholders’ equity?B . Th ey fl ow through retained earnings.
What is Return to Equity? Interest paid on debt Revenue minus Costs Only Retained Earnings All of the Above
Match each definition that follows with the term (a–h) it defines. Question 7 options: a company's ability to make interest payments and repay debt at maturity focuses on a company’s ability to generate net income useful for comparing one company to another or to industry averages use debt to increase the return on an investment measures the risk that interest payments will not be made if earnings decrease the percentage analysis of the relationship of each component in a financial statement to a total within the statement a percentage analysis of increases and decreases in related items on comparative financial statements an analysis of a company’s ability to pay its current liabilities 1. solvency 2. leverage 3. times interest earned 4. horizontal analysis 5. vertical analysis 6. common-sized financial statements 7. current position analysis 8.…
Which of the below are the correct adjustments we make to a company's EBIT to arrive at its FCFF? Select all that apply. Select All That Apply A B D E F Take out taxes Subtract depreciation and amortization Subtract capital expenditures Add back acquisition expenses Subtract changes in net working capital Add back R&D expenses ?
Define each of the following terms:a. Annual report; balance sheet; income statement; statement of cash flows; statement ofstockholders’ equityb. Stockholders’ equity; retained earnings; working capital; net working capital; net operatingworking capital (NOWC); total debtc. Depreciation; amortization; operating income; EBITDA; free cash flow (FCF)d. Net operating profit after taxes (NOPAT)e. Market value added (MVA); economic value added (EVA)f. Progressive tax; marginal tax rate; average tax rateg. Tax loss carryback; carryforward; alternative minimum tax (AMT)h. Traditional IRAs; Roth IRAsi. Capital gain (loss)j. S corporation
The date on which liability for dividends must be recorded. * a. Date of payment b. Date of record c. Declaration date d. Date of issuance
For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl ected in shareholders’ equity?C . Th ey are a component of accumulated other comprehensive income.
8. Discount on Note Payable should be classified as a a. current asset b. contra account to Notes Payable c. part of stockholder's equity d. deferred debt
How the equity method accounting rules work?
Directions: Click the Case Link above and use the information provided in Revolutionary Designs, Inc., Part B, to answer this question: What is the impact on Revolutionary Design's adjusted debt ratio (total liabilities less subordinated debt) to adjusted tangible net worth (tangible net worth plus subordinated debt) if we assume that the owner debt will no longer be subordinated in 20Y3? Adjusted debt to adjusted tangible net worth will increase from approximately 2.7 to approximately 3.8 in 2013. Adjusted debt to adjusted tangible net worth will improve from approximately 3.5 to approximately 2.6 in 20Y3. Adjusted debt to adjusted tangible net worth will increase from approximately 3.5 to approximately 3.8 in 20Y3. Bookmark for review
Which of the following is the definition of return on common equity?A. Net income / Average common equityB. Operating income / Average common equityC. Comprehensive income / Average common equityD. None of the above
From the dropdown box beside each numbered balance sheet item, select the option of its balance sheet classification. If the item should not appear on the balance sheet, choose the option "No item required" from the selection choices.