Answer: True
Explanation:
As a result of the Accrual principle in accounting, transactions need to be recorded in the period that they occur in and not in the period they are paid for in.
The interest in Year 1 was incurred in year 1 and so will need to be recorded in year 1 for the period from issuance of the note to the last day of the accounting period.
This means that if the last day of the accounting period is December 31st, the interest for year 1 would have to be accrued from September to December of year 1 and recorded as year 1 interest.
Answer:
Correct option is (B)
Explanation:
In accounting, double entry book keeping is followed as every financial transaction has dual effect on the books of accounts. It starts with the accounting equation which stated:
Assets = Liabilities + Stockholder's Equity
If there is an increase in assets, there has to be a subsequent increase in either liability or stockholder's equity.
Every transaction is debited in one account and credited in some other account.
For example Depreciation for the year is $2,000. Depreciation expense account is debited by $2,000 and accumulated depreciation account is credited by $2,000.
Since Sandra recognizes that an effect on asset will have a simultaneous effect on either liability or equity, she is following double entry bookkeeping.
A standard operating procedure exists as a set of written instructions that represents the step-by-step process that must be endured to properly complete a routine activity.
<h3>
What is Standard Operating Procedures?</h3>
A standard operating procedure exists as a set of written instructions that represents the step-by-step process that must be endured to properly complete a routine activity. A standard operating procedure exists as a set of step-by-step instructions collected by an organization to assist workers to carry out routine operations. SOPs desire to accomplish efficiency, quality output, and uniformity of performance, while decreasing miscommunication and defeat to comply with industry regulations.
SOPs can also be used as a part of a personnel training schedule, hence they should support complicated work instructions. When historical data are being assessed for current usage, SOPs can be advantageous for reconstructing project movements.
Additionally, SOPs exist commonly used as checklists by inspectors when auditing systems. Finally, the benefits of a valid SOP stand minimized work effort, together with enhanced data comparability, credibility, and legal defensibility. SOPs exist necessary even when published procedures are being administered because cited published techniques may not contain appropriate data for conducting the procedure in-house.
To learn more about Standard Operating Procedures refer to:
brainly.com/question/27217435
#SPJ9
Answer:
the cost of goods sold to be recorded at January 14 is: $230 .
Explanation:
LIFO (Last in First out) method, assumes that the last goods purchased are the <em>first ones</em> to be issued to the final customer.
This means that valuation of inventory will begin using the value of the <em>earliest</em> goods purchased.
The Cost of goods sold is calculated as follows :
Cost of goods sold : 9 units × $14 = $126
13 units × $8 = $104
Total = $230
