True or False??
1. The accrual basis of accounting requires revenue be recorded when cash is received from customers.
2. If the adujustment for accrued taxes at the end of the perioud is inadvertently omitted, net income for the period will be overstated.
3. A work sheet is a financial statement that is an integral part of the financial statement.
4. For a corporation, the balance of the income summary account is closed to the Retained Earnings account at the end of the period.
5. Working capital is current assets less by current liabilities.
6. The vertical analysis of an income statement is performed by dividing every item on the income statement by the amount of expenses.
7. The balance in the prepaid insurance account before adjustment at the end of the year is $4,000. The amount in the journal entry required to record insurance expense will be $2,500 if the amount of unexpired insurance applicable to future periods is $1,500.
2007-02-06
12:27:48
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2 answers
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asked by
Nichole
4