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zaharov [31]
3 years ago
7

A law firm received $2,000 cash for legal services to be rendered in the future. The full amount was credited to the liability a

ccount Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause:
Business
1 answer:
Mashcka [7]3 years ago
8 0

Answer:

Revenues to be understated.

Explanation:

The accrual basis says that revenues are recognized when earned and expenses are recognized when incurred.

In this case, if the legal services have been rendered at the end of the accounting period and no adjusting entry is made there is a situation of understated revenue.

When an accountant says that an amount is understated, it means two things: The amount is not the correct amount, and  the amount is less than the true amount.

The adjusting entry that should be done is:

Debit to the liability account Unearned Service Revenue, and a credit to the revenue account Service Revenue.

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Which of the following is true about a "credit"?I. It is part of the double-entry procedure that keeps the accounting equation i
likoan [24]

Answer:

ALL

Explanation:

All of the following is true about a "credit"

I. It is part of the double-entry procedure that keeps the accounting equation in balance because, double entry is made up of 'debit' and 'credit' as the principle states: 'credit the giver and debit the receiver' hence, in order for the accounting equation to be balanced, every debit must have a corresponding credit

II. It represents a decrease to assets because just like the principle states: 'credit the giver and debit the receiver', it therefore implies that a 'credit' entry will decrease the balance on the account because it is giving.

III. It represents an increase to liabilities because liability accounts already have credit balances by nature, therefore a 'credit' entry will be increasing the already existing credit balance.

IV. It is on the right side of a T-account.  This is a true statement because in T-account construction the debit is on the left and the credit on the right.

5 0
3 years ago
One of the three basic questions: concerned with the distribution of goods and services
Harman [31]
How to transport the goods ie by truck, plane or train for example for goods like vegetables and fruits from California to Canada and for services like consulting services it could be if they are available and at what cost.
4 0
3 years ago
What factors are important to consider when planning to fund your education? Select all that apply A) how much debt you are will
wolverine [178]

Answer:

The correct answers are A and C

Explanation:

The factors which should be considered or taken into consideration while planning for funding the education are:

1. How much amount of debt the person or an individual is willing to incur- It means that the person or an individual need to consider that how amount of money is willing to borrow from bank, friends in order to fund the education.

2. How much project income of the person or an individual will go towards paying debt- It means that the person or an individual need to see that how much the project income of the person will be used for paying the debt.

7 0
3 years ago
Elijah, who is single, is employed as a full-time high school teacher. The school district where he works recently instituted a
Fofino [41]

Answer:

A. Tuition $4,000

B. $8,665

Explanation:

A..Based on the information given the expenses that might qualify as deductions for AGI(ADJUSTED GROSS INCOME) is TUITION

The amount of the expenses that might

qualify as deductions for AGI is the tuition amount of $4,000 reason been that we were told that he spent the amount of $6,600 on tuition and secondly the AGI(ADJUSTED GROSS INCOME limitations are not higher than the unmarried return of the amount of $65,000

b. Calculation to determine How much of these expenses might qualify as deductions from AGI

Tuition$2,600

($6,600 − $4,000)

Add Books and course materials $1,500

Add Lodging $1,700

Add Meals $1,100

($2,200 × 50% cutback adjustment)

Add Laundry and dry cleaning $200

Add Campus parking $300

Add Auto mileage $1,265

(2,200 miles × $.575)

Total deduction from AGI $8,665

Therefore The Amount of the expenses that might qualify as deductions from AGI is $8,665

4 0
3 years ago
I have a business. I have 20 workers and 100 dollars!!! How do I split it??????
Andreyy89
You have 20 workers and $100.00

100.00/20workers = $5.00/ worker.

Just hand each one $5.00 and say Thanks Good Job!

Check: $5.00 x 20 = $ 100.00

8 0
2 years ago
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