Questions from Financial Accounting

Q: Which of the following is the entry to be recorded by a

Which of the following is the entry to be recorded by a law firm when it receives a $2,000 retainer from a new client at the initial client meeting? a. Debit to Cash, $2,000; credit to Legal Fees Reve...

Q: You have observed that the net profit margin ratio for a retail

You have observed that the net profit margin ratio for a retail chain has increased steadily over the last three years. The most likely explanation is which of the following? a. Salaries for upper man...

Q: Write the income statement equation and define each element.

Write the income statement equation and define each element.

Q: Cash payments for salaries are reported in what section of the statement

Cash payments for salaries are reported in what section of the statement of cash flows? a. Operating. b. Investing. c. Financing. d. None of the above.

Q: This period a company collects $100 cash on an account receivable

This period a company collects $100 cash on an account receivable from a customer for a sale last period. How would the receipt of cash impact the following two financial statements this period? Incom...

Q: Explain the difference between a. Revenues and gains.

Explain the difference between a. Revenues and gains. b. Expenses and losses.

Q: What criteria must normally be met for revenue to be recognized under

What criteria must normally be met for revenue to be recognized under accrual basis accounting?

Q: How is the current ratio computed and interpreted?

How is the current ratio computed and interpreted?

Q: Explain what the time period assumption means.

Explain what the time period assumption means.

Q: The following are independent situations. a. A new company

The following are independent situations. a. A new company is formed and sells 100 shares of $1 par value stock for $12 per share to investors. b. A company purchases for $18,000 cash a new delivery t...