Answer: c. shields the personal assets of owners from liability claims.
Explanation:
An advantage of limited liability is that it shields the personal assets of owners from liability claims.
For a limited liability company, it should be noted that the liabilities of the members in the company for the debts that are incurred are limited only to the investment of the members. Personal assets are not affected if the company first into debt.
Answer:
I believe the best and most correct answer is A.)
Explanation:
Answer:
Adjusting Entry
Date Accounts/ Description Dr. Cr.
January 31 Insurance Expenses $950
Prepaid Insurance $950
Explanation:
On January 1 insurance purchased will be considered as the prepaid insurance and it is for 2 years ( 24 months ). On January 31 one month's insurance expense has been accrued and it should be recorded and balance for this accrual should be transferred from prepaid insurance to insurance expense account.
Insurance paid = $22,800
Per month Insurance = $22,800 / 24 = $950 per month
Answer:
B. November 30
Explanation:
The revenue recognition principle under GAAP states that revenue has to be recognized when services are performed or sales made irrespective of its invoicing or collection date.
Since the sale was made on November 30 the revenue is to be recognised on this date.
The other options A and C are the dates on which the statement was sent or the collection date which are not relevant for revenue recognition.
