Reference no: EM132959940

Problem 1: Suppose that in a prior fiscal period, an accountant accidently expensed the purchase of equipment instead of capitalizing it. The reversing entry to correct this error will include:

Select one:
a. A debit to Retained Earnings and Income Tax Receivable and a credit to Equipment
b. A debit to Equipment and a credit to Repair and Maintenance Expense
c. A debit to Equipment and a credit to Retained Earnings and Income Tax Payable
d. A debit to Repair and Maintenance Expense and a credit to Equipment

Problem 2: It shows the results of the company's operations that are ongoing:

Select one:
a. None of the choices listed
b. Income (loss) from continuing operations
c. Income (loss) from discontinued operations
d. Gain (loss) on disposal of discontinued operations