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what is the most used liquidity ratio that can be used to measure the proximity of cash position of a business
water and electricity expense in arrears at the end of the entity's finacial year is recorded in the finacial statement as
Select from the following list the qualitative characteristic (Predictive value, Confirmatory value, Materiality, Completeness, Neutrality, Freedom from error, Verifiability, Comparability) of useful information that best describes each of the following items:
1.In order to keep the financial statements simple, Carlaw Consulting shows three items on its income statement: Revenue, Expenses and Net income
2.The financial statements of Belbach Industries are audited on an annual basis by public accountants.
3.Rydell Corporation is contemplating an investment in Fryan Ltd. Rydell has requested a copy of the company’s year-end financial statements to assist them in their investment decision
4.Chemical Reaction Inc. operates in both the US and Canada and restates its US financial statements according to Canadian GAAP for its Canadian investors
5.The Controller for Location Inc. emphasizes that factual and unbiased information prevails in the preparation of the company financial statements.
An accountant has debited an asset account for $2,000 and credited an expense account for $4,000. Which of the following would be the correct way to complete the recording of the transaction?
Credit an asset account for $4,000.
Credit a liability account for $2,000.
Credit a shareholders’ equity account for $2,000.
Debit a shareholders’ equity account for $2,000.
During the month of August, Karlsson Industries had the following transactions:
Aug. 2 Paid cash for the August rent of $1,500
Aug. 6 Purchased supplies of $250 on account
Aug.10 Collected $5,700 from customers on account
Aug.15 Received $2,200 cash for services to be rendered in September
Aug. 21Paid for supplies purchased on account on August 6
Aug. 28 Billed customers for $7,500 for services provided in August
Aug. 31Paid $150 cash for utilities expense
For each transaction fill in the below table for the date of the transaction, the account name to be debited and credited and the effect on the respective account: increase to the account and for a decrease to the account
Choose the correct answer for each date
A. August 2nd
Debit account choose between: utility expenses, rent expenses, supplies, account receivable, accounts payable, cash, supplies expense, service revenue, Unearned revenue.
Effect :
Amount :
Credit account
Effect
Amount
August 6th
August 10th
August 15th
August 21st
August 28th
August 31
Discuss the concept of the double entry and elaborate on its relevance to the duality concept
‘’To prevent and alleviate human sufferings through appropriate and timely humanitarian and development interventions, contribute to the well being of humankind and prevalence of peace by mobilizing the public and partners in Ethiopia and around the world”.
please evaluate, using the above mission statement in components
1. customer,
2. product/service,
3. market,
4. technology,
5. concern for survival, growth,and profitability,
6. philosophy,
7. self-concept,
8. concern for public image and
9. concern for employee.
Which of the following is not an example of an intangible asset.
a)Goodwill
b)computer software
c)patents and trade marks
d)computer hardware
Indicate by choosing the correct option whether the following statement is true or false:
Output VAT is the tax (charged) by the entity on goods delivered to the entity.
What will the journal entry be if an entity buys inventory on credit when the periodic inventory system is in use (Ignore any VAT implications)?
#339914 on Dec 2023