Question

Due to an oversight, a company made no adjusting entry for accrued and unpaid employee wages of $24,000 on December 31. This oversight would: A. Understate net income by $24,000 B. Overstate net income by $24,000 C. Have no effect on net income D. Overstate assets by $24,000 E. Understate assets by $24,000 On June 30, 2009, Apricot Co. paid $6,000 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On June 30, 2009 Apricot should record: A. A credit to an expense for $6,000 B. A debit to an expense for $6,000 C. A credit to a prepaid expense for $6,000 D. A debit to a prepaid expense for $6,000 E. A debit to Cash for $6,000

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!