1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
larisa [96]
3 years ago
10

Without an adjusting entry for accrued interest expense, liabilities and interest expense are understated, and net income and st

ockholders' equity are overstated. True or false?
Business
1 answer:
Mrrafil [7]3 years ago
7 0

Answer:

True

Explanation:

An adjusting entry for accrued interest expense will be recorded as follows in the books of the owing entity.

Debit Interest expenses account - <em>(this will increase expenses)</em>

Credit Interest payable (liability) account - <em>(this will increase liability)</em>

Therefore, without the above adjusting entry

  • Liabilities will be understated, since the adjusting entry would have increased liability
  • Interest expenses will be understated, since the adjusting entry would have increased interest expenses
  • Net Income will be overstated, since a higher interest expense by the adjusting entry would have reduced net income
  • Stockholders' equity will be overstated, since a higher interest expense by the adjusting entry would have reduced net income which would in turn reduce stockholders' equity.
You might be interested in
The goals of labor unions differ from those of management because employers want more profits and labor wants: Multiple choice q
AnnZ [28]

The goals of labor are such that they want better pay and working conditions.

<h3>The ultimate goal of workers/labor</h3>

A business is in operation to make a profit, likewise, labor or workers work to the end of being paid for the services rendered.

In addition to good pay, labor also requires good perks like health cover, safe and secure work conditions, and the environment.

Learn more about Labour here:

brainly.com/question/98074

#SPJ1

8 0
2 years ago
Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $134,000 on sales of $2,310,000. Division B is able
Genrish500 [490]

Answer:

a. Division A = 5.80 %, Division B = 8.95 %

b. Division B is superior. Because, it generates a greater profit margin per each sale made.

Explanation:

<u> a. Compute the profit margins</u>

Profit margin = Profit / Sales × 100

Division A = $134,000 / $2,310,000 × 100

                 = 5.80 % (2 decimal places.)

Division B = $33,400 / $373,000 × 100

                 = 8.95 % (2 decimal places.)

<u> b. Based on the profit margins</u>

Division B is superior as it generates a greater profit margin per each sale made.

8 0
2 years ago
Recognizing oneself as part of a whole and working toward a
Lubov Fominskaja [6]

Answer:

555

Explanation:

4 0
3 years ago
A production line at V. J.​ Sugumaran's machine shop has three stations. The first station can process a unit in 9 minutes. The
Murrr4er [49]

Answer:

Station 1 is a bottleneck station because the processing time taken to process the product in such station is 9 minute when compared with Station 2 and Station 3

Explanation:

Station 1 = Processing time is 9 minutes

Station 2 = Processing time is 5 minutes per unit (15 minutes / 3  machines)

Station 3 = Processing time is 7 minutes

Thus, the Station 1 is the bottleneck station with a bottleneck time of 9 minutes per unit.

7 0
3 years ago
Economics is the study of producing and
Free_Kalibri [48]
Consuming and developing
5 0
3 years ago
Other questions:
  • There are several ways to file pending insurance claims. what is the best way to file so that timely follow-up can be made?
    10·1 answer
  • Gerome Houser is a pastry chef at McKay’s Eatery. His annual salary is $45,623. His benefits include $1,755 for two weeks of vac
    9·1 answer
  • Besides the actual mortgage payment, which also factors into the monthly payment on a home?
    8·2 answers
  • Which of the following might vary in on online purchase depending on where the purchaser lives?
    14·2 answers
  • During the year, Apex Co. sold an unprofitable component of the company. The component had a net loss from operations during the
    12·1 answer
  • When does it make sense for government to interfere with a pure market outcome?
    13·1 answer
  • A statement of cash flows explains the differences between the beginning and ending balances of: Multiple Choice Net income. Equ
    11·2 answers
  • Great Subs Inc., a regional sandwich chain, is considering purchasing a smaller chain, Eastern Pizza, which is currently finance
    9·1 answer
  • Jenny likes chocolates. One​ day, a friend offers her a chocolate bar and she is extremely happy on receiving it. As the day​ pr
    11·1 answer
  • 1. Which of the following people is/are legally required to file a tax return?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!