Answer:
Part 2 Which of the following transactions does not involve an accrual?
- Recording the pre-payment of two years' worth of insurance. THIS IS AN ASSET EXCHANGE TRANSACTION SINCE IT CREATES AN ASSET ACCOUNT, PREPAID INSURANCE, THAT DECREASES AS TIME PASSES
Part 3 The recognition of an expense may be accompanied by which of the following?
- An increase in liabilities. EXPENSES ARE NOT ALWAYS PAID IMMEDIATELY, FOR EXAMPLE UTILITIES, THEY FORM A SHORT TERM LIABILITY UNTIL PAID.
Part 4 The adjusting entry to recognize work completed on unearned revenue involves which of the following?
- A decrease in liabilities and an increase in equity. UNEARNED REVENUE IS A LIABILITY ACCOUNT, AND AS THE WORK IS COMPLETED, REVENUE SHOULD INCREASE, THEREFORE EQUITY WILL INCREASE.
Part 5 Which of the following would cause net income on the accrual basis to be different from (either higher or lower than) "cash provided by operating activities" on the statement of cash flows?
- Paid advertising expense. IF THE COMPANY PAID ADVERTISING EXPENSES ON ACCOUNT.
Explanation:
Answer:
The correct answer is letter "A": salary of a production supervisor.
Explanation:
Variable Costs vary depending on the company's production volume. Variable costs go up when the company produces more goods or services and go down when it produces fewer goods or services. This is compared to fixed costs which do not change in proportion to production volume.
<em>Direct materials, production supplies, commissions, and fees are examples of variable costs. The salary of a production supervisor would fall under this category.</em>
Answer:
Regardless of what Oceanic knew or could have discovered
Explanation:
An implied warranty for merchantability guarantees that a product will work as expected. if your oven won't maintain a stable temperature, it can't be relied upon to work properly and has violated the implied warranty of merchantability.
The warranty of merchantability is based off the idea that the seller is in a better state to know whether a product will perform properly. it encourages merchants to ensure the quality of their products before placing them on market.
