Homework SourseWhich of following is the best measure of performance for an
Which of following is the best measure of performance for an accounting period?
A. Assets
B. Expenses
C. Equity
D. Net Income
Which of the following best describes an accrued expense?
A. An expense that is recognized prior to being paid
B. An expense that is paid prior to being recognized
C. An expense that is incurred but never paid
D.An expense that effects the balance sheet but not the income statement
If a company recognizes accrued salary expense
A. the employees have completed work but have not been paid.
B. the employees have worked and have been paid for the work they completed.
C. the employees have been paid but have not completed their work.
D. the employees will work in the future and will be paid in the future.
When a company incurs accrued expenses
A. the liability account, accounts payable, increases.
B. stockholders’ equity decreases.
C. assets are not affected.
D.all of the answers are correct.
On December 31, Year 1 Hilton Company recognized $600 of accrued salary expense. Hilton paid cash to the employees in Year 2. Which of the following shows how these events will affect Hilton’s financial statements on December 31, Year 1?
A. Option A
B. Option B
C. Option C
D. Option D
| Balance sheet | Income Statement | Statement of Cash Flows | |||||||||
| Assets | = | Liabilities | + | Equity | Rev. | - | Exp. | = | Net Inc. | ||
| A. | NA | = | (600) | + | (600) | NA | - | (600) | = | (600) | OA |
| B. | NA | = | 600 | + | (600) | NA | - | 600 | = | (600) | NA |
| C. | NA | = | 600 | + | 600 | NA | - | 600 | = | (600) | OA |
| D. | NA | = | 600 | + | (600) | NA | - | (600) | = | (600) | NA |
Solution
Question 1). Answer :- Option D). Net income.
Question 2). Answer :- Option A). An expense that is recognized prior to being paid.
Question 3). Answer :- Option A). The employees have completed work but have not been paid.
Question 4). Answer :- Option D). All of the answers are correct.
Question 5). Answer :- Option B).
