
Recognitions of Expenses:
An expense is an operating amount spent to generate revenue for the business. A spending should be treated as an expense if it is revenue in nature or spent on operations activities of the business.
Financial statements:
Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement,
1. Reporting of Cost of free internet service provided to the customers in the store:
To indicate: Reporting of Cost of free internet service provided to the customers in the store
2. Effect of internet service bill received but not paid, on assets, liabilities, and equity:
To indicate: Effect of internet service bill received but not paid, on assets, liabilities, and equity
3. Effect of Payment of internet service bill on assets, liabilities, and equity:
To indicate: Effect of Payment of internet service bill on assets, liabilities, and equity
4. Effect of increase in internet service bill on Net income:
To indicate: Effect of increase in internet service bill on Net income

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Chapter 1 Solutions
Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
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