The answer is D. Gather information. Took the test and it was correct.
Answer:
1. Cash (Dr.) $145,850
Sales (Cr.) $145,850
2. Purchases (Dr.) $76,200
Accounts Payable (Cr.) $76,200
3. Accounts Payable (Dr.) $4,100
Cash (Cr.) $4,100
4. Prepaid Rent (Dr.) $24,000
Cash (Cr.) $24,000
5. Wages Expense (Dr.) $12,500
Cash (Cr.) $12,500
Wages Expense (Dr.) $350
Wages Payable (Cr.) $350
6. Depreciation Expense (Dr.) $1,700
Accumulated Depreciation (Cr.) $1,700
Explanation:
Journal entries are recorded for the business transactions. These transaction incurred in the business are recorded in the books of accounts. These journal entries then create Ledger and Trial balance.
Answer:
The statement which is false is D) .
Explanation:
Income statement helps in assessing the current and past performance of the company, it also helps in predicting the future performance and in assessing the risk present in future in obtaining cash flows. Income statement are prepared through two methods either single step format ( which is used by sole proprietor and partnership firms ) or multi step format ( used by corporations ) .
In the single step format , all the income items are group together and are subtracted from the total cost, while in multi step format , a company breaks all the sources from where the revenues and cost have come, it is used to take out various measures like gross profit, operating profit etc.
A common size statement is one of the type of income statement where each account item is represented as a percentage of total sales value.
Option D is false because discounted operations and extraordinary transactions appear on both the single step and multi step format , these transactions are written as written as footnote below the statement.
I guess because the economy falling apart and the budget keeps going up.
