Which of the following statements is true

Assignment Help Cost Accounting
Reference no: EM13492745

A company has an asset account, Prepaid Insurance, with a balance of $3,750 at the beginning of the month. The company used $980 of insurance during the month. Which of the following statements is true?

 

Retained earnings and stockholders' equity should decrease because of this transaction.

 

Retained earnings and stockholders' equity should be unchanged by this transaction.

 

The company should credit Insurance Expenses for $980 and debit Prepaid Insurance for $980.

 

The company should credit Accrued Liabilities for $980 and debit Insurance Expenses for $980.

 

Purrfect Pets had $6,000 of supplies at the end of October. During November, the company bought $2,000 of supplies. At the end of November, the company had $1,000 of supplies remaining. Which of the following statements is not true?

 

An expense should be debited for $7,000 in November.

 

During November, the company used $7,000 of supplies.

 

The carrying value of supplies on November 30 should be $1,000.

 

An asset should be debited for $1,000 in November.

 

A company reported the following amounts of wages payable at the beginning and the end of the year 2010:

Wages payable, January 1, 2010 $820
Wages payable, December 31, 2010 $2,640
The income statement for 2010 reported Wages Expense of $57,600.
How much cash was paid for wages during 2010?

 

$57,600

 

$54,140

 

$54,960

 

 

 

Reference no: EM13492745

Questions Cloud

The reasonable needs of a related corporation : To what extent may a corporation accumulate earnings for the reasonable needs of a related corporation?
What is the bicyclists speed at the bottom of the hill : A bicyclist starts from rest at the top of a hill and rolls down the hill without pedaling. what is the bicyclist's speed at the bottom of the hill
Explain the diatomic molecule ab has a dipole moment : The diatomic molecule AB has a dipole moment of 1.21 D and the A-B bond distance is 115 pm. Determine the percent ionic character of the bond in AB
How fast was the first car moving before the collision : A railroad car with a mass of 25,000 kg rolls into a second stationary car with a mass of 50,000 kg. How fast was the first car moving before the collision
Which of the following statements is true : Purrfect Pets had $6,000 of supplies at the end of October. During November, the company bought $2,000 of supplies. At the end of November, the company had $1,000 of supplies remaining. Which of the following statements is not true?
Find an article on using the cloud with ais : Find an article on using the cloud with AIS. Articles should address current technologies and/or emerging trends
Explain the number average degree of polymerization : If 0.52 moles of terephthalic acid are reacted with 0.50 moles of ethylene glycol, what is the number average degree of polymerization at 90 and 100% reaction
Calculate the linear speed of the tip of the blade : Consider a 53-cm-long lawn mower blade rotating about its center at 3400 rpm. Calculate the linear speed of the tip of the blade
Describe the methodology for the direct : Describe the methodology for the direct and indirect cash flow methods including the major cash flow categories of operating, investing, and financing activities and give examples of each activity. Describe the relationship between the beginnin..

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd