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saw5 [17]
3 years ago
5

Consulting immediately paid $500 cash for utilities for the current month. Given the choices below, determine the general journa

l entry that A. Egert Consulting will make to record this transaction.
a. Utilities Expense 500
Cash 500

b. Cash 500
Utilities Expense 500

c. Cash 500
Accounts Payable 500

d. Utilities Expense 500
Accounts Payable 500

e. Prepaid Utilities 500
Accounts Payable 500
Business
1 answer:
Andru [333]3 years ago
5 0

Answer:

a. Utilities Expense 500

    Cash 500

Explanation:

Given: Consulting immediately paid $500 cash for utilities.

As $500 cash been paid for utility expenses.

We know the golden rule of accounting transaction:

  • Personal accounts: Debit the receiver, credit the giver.
  • Impersonal real account: Debit what comes in, credit what goes out.
  • Impersonal Nominal account: Debit all expenses and losses, credit all profit and gains.

Paid for utility expense of firm is not the personal account, however, it is impersonal account. In the given case, cash is going out of business.

Therefore, Debit all expense and losses and credit what goes out of business.

Journal Entry of the transaction:

Debit utility expenses account--- $500

     Credit cash account--- $500

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If you wanted to make sure a company has enough money available to pay its bills, which financial statement would be most helpfu
LenaWriter [7]

Answer:

D. Cash flow statement

Explanation:

A cash flow statement refers to a financial statement which is used to record and summarize the amount of liquid assets (cash and cash equivalents) entering and leaving a business entity.

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

Hence, if you want to make sure a company has enough money available to pay its bills, the financial statement which would be most helpful is the cash flow statement because it is used to measure and analyze how well the company is doing financially in terms of generating revenue to pay its bills and debts.

5 0
3 years ago
The board of directors authorizes a cash or distribution of cash to its investors.a. Trueb. False
Novosadov [1.4K]

This assertion is accurate. A cash dividend or other cash payment to investors is approved by the board of directors.

<h3>Is the board of directors involved in the decision to distribute dividends?</h3>

Before a cash dividend is announced and later delivered to shareholders, a company's board of directors must determine whether to pay one and how much. The Board shall determine the amount of cash to be delivered to the Shareholders, both individually and collectively.

<h3>Dividends have been announced by the board of directors.</h3>

A company's interim dividend is the sum that the board of directors declares between two annual general meetings. Interim dividend is included in the definition of dividend under Section 2(35) of the Companies Act. It is at the board of directors' discretion to declare an interim dividend.

Learn more about interim dividend: brainly.com/question/28523087

#SPJ4

5 0
1 year ago
You and your brother agree (your mother disagrees) to merge the corporation into a larger insignia brand of third-world
WINSTONCH [101]

Answer:

True

Explanation:

False was Incorrect on Edg so then theres only one answer left.

5 0
2 years ago
Read 2 more answers
Identify which of the following statement(s) is (are) correct as to why accounting is important. (check all that apply.) manager
Dominik [7]

Answer:

The correct statements are A, B and C

Explanation:

Accounting plays a important role while running a business as it helps the company in keeping a track of expenditures as well as income, it ensures the statutory compliance.

Provide the owners, managers, investors and creditors reliable information so that could take the decisions.

It summarizes the information and help in conveying the information related to the firm activities.

It records as well as communicate the information regarding the business.

7 0
3 years ago
Vincente, a retired CEO, invests capital in a start-up company that creates budgeting software. He mentors the entrepreneur and
Ugo [173]

Answer: (A) Stakeholder

Explanation:

 The stakeholder is refers to the person in an organization that basically helps in managing all the stake in business either in external or internal type.

The main responsibility of stakeholder is to managing the resources in an organization and managing all the investment related business approach and the supply chain.

 According to the given question, Vincent is the retired CEO of the company and he investing the capital in the startup company that helps in creating the software.

Therefore, The Vincent is basically refers to the startup firm's stakeholder.  

8 0
3 years ago
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