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hjlf
3 years ago
13

At the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up

/ expired was accidentally omitted. Which of the following statements is true?
a. total assets at the end of the year will be understated.
b. insurance expense will be overstated
c. stockholders' equity at the end of the year will be understated.
d. net income for the year will be overstated.
Business
1 answer:
TEA [102]3 years ago
6 0

Answer:

d. net income for the year will be overstated.

Explanation:

The prepaid rent account is used to record the amount paid in advance for rent. Once the amount is paid, the entries required are

Debit Prepaid rent

Credit Cash account

On subsequent use of the rent, the required entries are

Debit Rent expense

Credit Prepaid rent

As such where at the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up / expired was accidentally omitted, net income for the year will be overstated as the rent expense that would have been posted to reduce it would have been omitted.

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Novak Corp. has 6000 shares of 5%, $100 par value, cumulative preferred stock and 12000 shares of $1 par value common stock outs
Annette [7]

Answer:

See below

Explanation:

Given the above data,

Preferred shares = 6,000 shares × $100 = $600,000

Dividend on preference shares = $600,000 × 5% = $30,000 per year

Dividend declared in 2019

= $55,800

Preferred dividend in 2019 = $30,000 × 2 = $60,000

Dividend declared in 2020 =$55,800

Preferred dividend declared in 2020 = $30,000 + $4,200 = $34,200

Dividend paid to common stock holders = $55,800 - $34,200 = $21,600

5 0
3 years ago
In a contract, what is consideration? A. Exchanging things of value B. Breaching the contract C. A business tort D. The minimum
Art [367]
Exchanging things of value is what consideration is in a contract.
7 0
3 years ago
Will a sole trader ownership stop a business progress?​
SOVA2 [1]

Answer:

True

Explanation:

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3 years ago
You work for a company that always pushes the envelope with respect to reporting revenues and expenses. You often disagree with
Artemon [7]

Answer:

Ethical Dissonance

Explanation:

Ethical Dissonance refers to a  divide between an individual desired moral identity and the  benefit they derive from acting against such ethical codes, conducts, beliefs or values.

The culture of the company is not in alignment with the my ethical codes', because its approach to reporting  amounts cannot be justified from a GAAP perspective, the ethical issues of concern is Ethical Dissonance

7 0
3 years ago
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Answer:

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4 0
3 years ago
Read 2 more answers
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