Author: Anonymous

The following information is available from the adjusted trial balance of the Oxenberg Rentals. After closing entries are posted, what will be the balance in the Retained earnings account?         Total revenues $ 125,000 Total expenses   60,000 Retained earnings   80,000 Dividends   15,000

The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called:

Accrued revenues at the end of one accounting period are expected to result in cash collections in a future period.

Accounts that appear in the balance sheet are often called temporary (nominal) accounts.

Feed the World Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record the collection on account would be:

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from operating activities generally affect:

Wellington Productions accepted a $7,200, 120-day, 6% note from Smith Studio on March 1. On the date the note matures, Smith is unable to pay, but Wellington intends to continue collection efforts. What entry should Wellington record on the maturity date for this dishonored note?

Two main accounting principles used in accrual accounting are expense recognition and full closure.

The Income Summary account is used to close the permanent accounts at the end of an accounting period.

Since the revenue recognition principle requires that revenues be recorded when earned, there are no unearned revenues in accrual accounting.