Auditors consider fi nancial statement assertions to identify appropriate audit procedures. For

On June 30, 2009, Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a

My name is Ann [436]

Answer:

c. A debit to a prepaid expense for $7,500.

Explanation:

Because the pament for management services are in-advance, is a right for Apricot, as now has the right to receive this management services for two-years

The entry will do the following:

it will recognize the prepaid expense

prepaid management services

and will post the cashoutflow for the amount paid.

prepaid management services 7,500 debit

cash 7,500 credit

From the option we are given:

a.- FALSE there is no expense in the entry

b.- FALSE there is no expense in the entry

d.- FALSE the prepaid expense is debited, not credited

e.- FALSE. cash is credit, not debit.

c.- CORRECT there is a prepaid expense, which is being debited.

3 0

3 years ago

in your opinion, does making a lot of money automatically mean you have a large savings account ? why or why not ILL MARK BRAINL

Dominik [7]

Answer:

I don't think so, because it still depends on the one who is saving the money, for example, you are earning a low amount of salary, then of course you will be watchful on how you will spend your money. and if you are earning a large amount of salary, you would think that since you have a lot, you can already spend them in any way that you want, which leads to low savings.

6 0

3 years ago

Question 2 of 8

sveta [45]

Answer:

This type of income is known as non-operating income in the financial statements

Explanation:

Non-operating income, as the world implies, is the income that a firm earns from activities that are not related to its main economic activity. An example would be a mall, whose main activity is the rental and management of commercial real estate, earning some income from short-term investments in the secondary market. This interest would be reported as non-operating income, and would be treated as such for financial, accounting, and tax purposes.

6 0

3 years ago

True or false?columbus's return voyage took longer than his outward voyage

zaharov [31]

That is false, he took a lot more time trying to find India and instead found America

7 0

3 years ago

Read 2 more answers

Finman Company designated Jill Holland as petty cash custodian and established a petty cash fund of $229. The fund is reimbursed

wolverine [178]

Answer:

Entry for Establishing Petty cash fund:

Dr: Petty Cash $ 229

Cr: Cash/bank $229

Entry for Expense paid out of Petty cash:

Dr: Office Supplies $ 95

Dr: Misc Expense $ 120

Cr: Petty Cash $ 215

Entry for Reimbursement of Petty cash fund:

Dr: Petty Cash $ 0

Cr: Cash/Bank $ 0

No entry is required at the moment as the petty cash fund balance after the transactions is not below $11 which is the reimbursement limit ($229-$95-$215 = $14)

Explanation:

A petty cash fund is a fund established within an entity in order to pay out day to day small expenses out of expenses. It is recognized as an current asset when initially set up and slowly expense out as soon as the money is taken out from it for a specific expense.

Examples: Petty cash payment can be used for below small expenses:

Postage and stationery
Meals and entertainment
Office Supplies
Conveyance Allowance
Sundry Expenses etc.

7 0

3 years ago