Question
updated 1 year ago
Category:
Accounting
Explain the primary advantage of a general ledger account.
Coursepivot December 19, 2022
Here is a tip: Think about how a company could keep a permanent record of all of the business activities that it has ever done. Explanation A key benefit of (View full solution)
updated 1 year ago
Category:
Accounting
When posting adjusting entries to the general ledger, what is written in the Item column?
Coursepivot December 19, 2022
Here is a tip: It's important to note the purpose of the entry in the item description section. Explanation When posting an adjusting entry, the word adjusting is typically written (View full solution)
updated 1 year ago
Category:
Accounting
Explain the revenue recognition principle.
Coursepivot December 19, 2022
Here is a tip: The accounting for accrued and deferred revenues provide more context for the revenue recognition principle. Explanation Revenues should be recorded when they are earned, not necessarily (View full solution)
updated 1 year ago
Category:
Accounting
Bill Roberts provided legal advice to a client for $500 on account. Roberts paid a legal assistant $50 for research on this engagement and used office supplies costing $10. If these are the only transactions for the period, compute net income under the cash, accrual, and modified cash bases.
Coursepivot December 19, 2022
Here is the step-by-step explanation, verified by an educator: Step 1 of 3 Net income is comprised of total revenues minus total expenses. Under the cash method, total revenues are (View full solution)
updated 1 year ago
Category:
Accounting
Write a one-page memo to your instructor explaining how you could use the double-entry system to maintain records of your personal finances. What types of accounts would you use for the accounting elements?
Coursepivot December 19, 2022
Explanation The double-entry system is an effective approach for tracking all of a company's activities. A person is similar to a company as it also has assets, liabilities, and owner's (View full solution)