The term expense represents a decrease in asset that always results in decrease in equity
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The term expense represents a decrease in asset that always results in decrease in equity
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- True or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?do liquid assets frequently have lower rates of return than fixed assets?If accrued liabilities are overestimated in the current period, the reported income in a following period will be lower than it should be. Select one: True False
- When an irrecoverable debt recovered is not adjusted for: Multiple Choice Profits are overstated and current assets are understated Profits are overstated nnd current assets are overstated Profits are understated and current assets are overstated. Profits are understated and current assets ere understated.Inflation affects the historical cost of an asset over time. TRUE OR FALSE.Expense and loss are the same. Net loss is a deficit or negative figure in the net income line.
- Which of the following is not affected by a change in interest expense? a. gross margin b. EBIT c. ROE d. a. and b e. all of the aboveWhat is the cost of accrued liabilities? If accruals have such a low cost, why don’tfirms use them even more?A decrease in the allowance for doubtful debts would result in O a reduction in gross profit an increase in net profit an increase in gross profit O a reduction in net profit
- Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’ equityd. AssetProvide an example of items that would be adjusted directly against equity rather than being included as part of profit or loss.some examples of items that would be adjusted directly against equity, rather than beingincluded as part of profit or loss.