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prisoha [69]
3 years ago
5

On january 31, jean consulting company receives a bill for that month’s utilities in the amount of $500. jean sets it aside beca

use she does not plan to pay the bill until its due date of february 15. what effect, if any, does this event have on the company’s accounting equation as of january 31?
Business
1 answer:
Licemer1 [7]3 years ago
7 0

When a company obtains a utility bill but will not pay it right away, it should debit utilities expense and credit accounts payable.

The accounting equation, Assets = Liabilities + Owners Equity means that the total assets of the business are all the time equal to the total liabilities plus the total equity of the business. This is true at any time and applies to each matter. 

In this case the balance sheet or accounts payable have an increased of $500, and the income statement has a utilities expense of $500. The expense decreases the net income, retained earnings, and therefore owners’ equity in the business.

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I would prefer Asset B

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A risk averse investor is the one who prefers lower amount of returns with known or specific risks instead of the higher amount of returns with unknown risks. So, from among the various level of risks, the investor will be preferring the alternative with the least interest.

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3 years ago
In preparing a bank reconciliation, the amount of an error indicating the recording of a check in the journal for an amount larg
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The statement is true.

In preparing a bank reconciliation, the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per the company's records because the excess amount would be reduced from the bank balance in the company's records, So the company books are not correct. To make them correct the excess amount should be added back to the balance as per the company's records.

For example, if the check amount was 500 but the company recorded it as $550. Then means that the company records show $50 less compared to the bank statement. Therefore, that $50 is added back and then it comes equal to the bank statement balance.

When a note is written to settle open account an entry that converts the accounts receivable account to a note receivable account is required. This entry is required because when the note is written to settle accounts the company has to receive notes in the future and the amount of the account.

<em>Your question is incomplete. Please read below to find the missing content.</em>

In preparing a bank reconciliation, the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per company's records.

TRUE

FALSE

Learn more about balance here: brainly.com/question/1115815

#SPJ4

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1 year ago
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is whether the transferor surrenders control over the receivables

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