Question

1.Net income would increase as a result of which of the following adjustments: a Accruing an...

1.Net income would increase as a result of which of the following adjustments:

a Accruing an expense
b Adjusting a prepaid account
     
c Accruing a revenue
d Recording depreciation

2 Which of the following is not an accounting event?

a A firm purchased equipment on account.
     
b A firm issues stock for cash.
c A firm received, but did not pay, a bill for advertising.
d A customer places an order for goods.
Business   Accounting   
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Answer #1
1.Net income would increase as a result of which of the following adjustments:
c Accruing a revenue
Explanation: accruing an expense, adjusting a prepaid account and recording depreciation increases
Expense and decrease net income, only accruing a revenue will increase net income.
2 Which of the following is not an accounting event?
d A customer places an order for goods.
Explanation: For an event , to be accounting event it must be recordable
and when a customer places an order, it cant be recorded in accounting system
until fulfilled.
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