Always involve at least one income statement account and one balance sheet account.
Explanation:
Adjusting entries are used to record events that happened during the current accounting period but weren't recorded earlier in the proper accounts. Accounting entries involve revenues and expenses, and at least one balance account (assets, liabilities and equity accounts). E.g. accounts receivable are adjusted to record bad debt expenses.
Chef City projects sales of 625 10-inch skillets per month. The production costs are $5 per skillet for direct materials, $2 per skillet for direct labor, and $3 per skillet for manufacturing overhead.
Cost of goods sold= unitary cost* units sold= 10*625= $6,250
The correct answer is letter "C": Cut your expenses by an amount greater than your deficit.
Explanation:
In case there is a deficit in your budget, it means your expenses are higher than your net income. An adjustment must be made in such circumstances. To bring back the balance in your budget, <em>you should cut your expenses by an amount higher than the amount of the deficit</em>. Otherwise, you could increase your income but keeping your expenses at the same level.