Notification by the bank that a customer's deposited cheque was
returned NSF requires that the depositor make the following
adjusting entry:
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1)
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Dr. Accounts Receivable; Cr. Cash |
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2)
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Dr. Bank Charges Expense; Cr. Accounts Receivable |
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3)
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Dr. NSF Expense; Cr. Cash
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4)
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Dr. Cash; Cr. Accounts Receivable |
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On December 1, 2019, Ali Co. receives $1,800 in advance for an
agreement to brew beer during the months of December, January, and
February. On December 31, 2019, Ali Co.:
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1)
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would have recognized $600 revenue under accrual accounting,
and would have recognized $1,800 revenue under cash-basis
accounting |
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2)
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would have recognized $600 unearned revenue under accrual
accounting, and would have recognized 1,800 cash under cash-basis
accounting
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3)
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would have a $0 liability to its client under accrual
accounting, and would have a $1,200 liability to its client under
cash-basis accounting |
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4)
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would have a $1,200 liability to its client under accrual
accounting, and would have a $1,800 liability to its client under
cash-basis accounting
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Laura Co. purchased an asset on January 1, 2019. Laura chose the
accelerated depreciation method to depreciate the asset. Had Laura
chosen a straight-line method, which of the following would be
true?
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1)
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The carrying value of the asset would be greater at the end of
2019. |
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2)
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Net income would be less in 2019. |
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3)
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Depreciation expense would be greater in 2019. |
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4)
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All responses are correct.
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