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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.
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71 days

Explanation:

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360 / 18 = 20

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3 years ago
The 2016 financial statements of Leggett &amp; Platt include the accounts receivable footnote: Total accounts and other receivab
AnnZ [28]

Answer:

The correct answer here would be option C) 16.5%.

Explanation:

For taking out the common size amount for gross accounts , formula is -

Gross account receivables  /   Total assets

Gross account receivables = net account receivables - allowance for doubt

                                                                                         full debts

= $486.6 + $7.2

= $493.8

Given -

Gross account receivables  = $493.8

Total assets  = $2984.1

Putting these values in the formula -

$493.8 / $2984.1

= 16.5%

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3 years ago
Select the qualification that is best demonstrated in each example. Clyde explains the equipment installation process to a custo
Vera_Pavlovna [14]

Answer:

4,1,4

Explanation:

I got it right on edgenuity

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3 years ago
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Answer:

ok

Explanation:

every one

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5 0
3 years ago
Read 2 more answers
What is the rationale behind the optimal choice of the consumer?
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