When prepaid rent is recognized as an expense, which of the following is true? Select one: a. Prepaid rent decrease, rent expense on the income statement increases and equity decreases b. Cash decreases and equity decreases c. Prepaid rent decrease, rent expense on the balance sheet increases and equity decreases d. Prepaid rent decrease, rent expense on the income statement increases and equity increases

Q: "The projected income statement method consists of taking the estimated income statement for the…

A: The income statement is the summary of income earned and expenses made in a certain period.…

Q: Gross profit is equal to Select one: a.  revenues - expenses b. sales - cost of goods sold c.…

A: The income statement is prepared to find the net income or losses incurred during the period.

Q: The income statement is a change statement. Explain what is meant by this

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: The recognition of income occurs simultaneously with the recognition of decrease in assets or…

A: Income is recognized in the books of accounts of an entity if the value of assets is increasing, or…

Q: A business will have Net profit in which of the following cases? O a. Expenses are less than revenue…

A: Solution:- Introduction:-  Net profit is one of the best way to identify or estimate of business…

Q: f. Total Expenses g. Net Income/Loss

A: Income statement means the statement which show the cost of goods sold and selling price and give…

Q: Which of the following is an expense? a. Purchases b. Dividend received c. Sales d.

A: Expenses are to be paid by company So expenses are money to be paid.

Q: d. Unearned Income 2. Which of the following is an element of a statement of comprehensive income?…

A: (1.)  Revenues is an element of a statement of comprehensive income. Therefore, the option (b)…

Q: will bills  payable given to creditors affect the current ratio?

A: Current ratio is the ratio of Current Assets to Current Liabilities.  Current ratio = Current…

Q: Accrued revenues represent revenues ?received after they are earned False

A: Solution: Accrued revenues are revenues that are earned but yet not received. These are shown as…

Q: The increase in expenses and decrease in payables should be debited* O True O False

A: Expense accounts normally have debit balance and all payables normally have credit balance. For…

Q: Net Income or Net Profit a.Net Income is less than Net Profit b.Are the same c.Net Profit is the…

A: Net Income or Net profit means when all the expenses has been deducted and net amount is calculated.

Q: Please provide explanation or justification on the effects of the transactions.

A: Explanation are as follows for above transaction.

Q: n which of the following cases will the business have Net profit ? a. Expenses are less than revenue…

A: Solution: "Expenses are less than revenue" in this case business will have net profit.

Q: Which of the following is true about expenses on the income statement?   Depreciation expense is…

A: Income statement also known as Profit and Loss statement is a financial statement that provides an…

Q: Liabilities and Revenues O Are decreased by debits and increased by credits Are decreased by both…

A: The different accounts in the business have debit or credit balance. According to the rules of…

Q: Payment of a divdend will :  A. Decrease net income  B. Increase net income  C. Decrease retained…

A: when companies earn income they share income with shareholders by way of dividend.

Q: How do I know when things like Accounts Receivable/ Payable & Equity are either decreasing or…

A: You can figure out when things like Accounts Receivable/ Payable & Equity are either decreasing…

Q: Which of the following equations expresses the definition of “income”?   Choices; Income = Revenues…

A: Revenues - It is the amount of money received through sale of goods and services . Gains - It is the…

Q: The ratio that tells you how much income is used up by expenses is the Return on Assets ratio. True…

A: A financial ratio called return on assets (ROA) describes how lucrative a business is in comparison…

Q: Net income is gross profit less other income.O financing expenses.O operating expenses.O other…

A: Gross profit is computed by subtracting cost of goods sold from revenue. Gross Profit = Revenue  -…

Q: Earnings before interest and taxes are positive above the operating breakeven point, and a loss…

A: At the Operating breakeven point, the firm has nil operating profit or Earnings before interest and…

Q: revenues ew less than expenses, what results on the income statement? What impact does an increase…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: The income statement includes Group of answer choices -expenditures, net worth, surplus or deficit.…

A: Income statement is one of the financial statements that helps in depicting the profitability of an…

Q: Estimated discount on property taxes is considered to be assets contra account .a FALSE .b TRUE

A: Property taxes are the amount of obligations or dues to the authorities for holding property of any…

Q: crease in revenue is on the credit side hence a decrease in expense is also on credit side   true…

A: Solution: Revenues have credit balance and expenses have debit balances. When Revenue is credited it…

Q: Expense and loss are the same. Net loss is a deficit or negative figure in the net income lin

A: No expense and loss are not the same. Yes net loss is shown as a negative figure (in brackets) in…

Q: The Balance-Sheet identity is (circle ALL that apply. Think of different ways to present this…

A: Balance-sheet is one of the most important financial indicators and essential financial statement…

Q: Interest expense should be calculated based on interest rates and debt balances and by using a trend…

A: Interest expense is the amount paid periodically on the borrowed amount. The borrowed amount can be…

Q: Return on assets

A: Return on assets is computed as net income upon total assets of the company.

Q: deficit

A: If the total asset is smaller than total liabilities and equity on the balance sheet it means a…

Q: The increase in expenses and decrease in payables should be debited O True O False

A: While recording any business transaction in accounting form we enterd this amountin two side one is…

Q: When are debits increases? When are debits decreases?

A: Debits Increases and Decreases: This forms a fundamental part of understanding of the flow of…

Q: Middleton Associates is a consulting firm that specializes in information systems for construction…

A: The income statement represents the financial performance of the business entity in the industry by…

Q: 4. Which of the following is not an element of a statement of comprehensive income? a. Interest…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Which of the following questions cannot be answered when analyzing the information presented in an…

A: Answer: Income statement is the statement which shows the profit or loss when the revenue and…

Q: Statement 1: Profit is any amount over and above that required to maintain the capital at the…

A: Profit: Amount of net income gained after deducting all dollar expenses from total revenue is…

Q: Which of the following calculations of net income is correct?   Select one: Cash receipts…

A: The objective of the question is to identify the correct formula for calculating net income in…

Q: A decrease in Accounts Payable is a ( SOURCE or  USE) of funds?

A: The cash flows statement is used to record cash inflows or cash outflow from the company in order to…

Q: Balance Sheets show the Flow of Assets and Liabilities between one accounting period and another.…

A: Answer:- True Explanation:- Balance sheet is one of the most important financial statement of an…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.