Financial Acct pt 2

AAA accrued $1,000 wages expense and wages payable at the end of 2025. How does this affect cash flows?

No cash flow effect

The application of intraperiod income taxes requires that income taxes be apportioned to each of the following items except:

operating income

Which of the following is most likely to be reported as a long-term asset?

B -

Buildings

Assets are recorded in the balance sheet in a decreasing order of:

liquidity

Current assets include cash and all other assets expected to become cash or be consumed:

Within one year or one operating cycle, whichever is longer

Which of the following adjusting entries causes a decrease in assets?

Recording depreciation expense

When a magazine company collects cash for selling a subscription, it is an example of:

A deferred revenue transaction.

Making insurance payments in advance is an example of:

A prepaid expense transaction.

Which of the following accounts has a balance whereby debits normally exceed credits?

Advertising expense.

On April 30, the company paid the secretary $1,160 for the month. Which journal entry is correct?

B -

Debit Wages expense and Credit Cash

On April 2, investors invested $30,000 cash and equipment valued at $14,000 in the business (use Common Stock as equity account). Which of the following journal entries is correct?

Debit Cash and Equipment and Credit Common stock