A company with a petty cash box with $200 when replenished has petty cash receipts of $15 for gas expenses, $23 for postage expenses, $18 for supplies expenses and $12 for miscellaneous expenses. In the journal entry, cash would be credited for:
-Cash would not be affected.
If accounts payable increase during a period, does that mean the expenses on accrual basis are less than the expense cash basis or would the expenses on accrual basis be the same as the expense on a cash basis?
If a company reported net income in 2007 of 2.4 million on total revenues of $30 million and depreciation expense totaled $1 million.
What were total expenses for 2007
What were total expenses for 2007, assuming all expenses except depreciation were cashexpenses
What was the companyâ??s 2007 cash flow
Adjusting entries are needed:
1. Whenever revenue is not received in cash
2. Whenever expenses are not paid in cash
3. Only to correct errors in the initial recording of business transactions
4. Whenever transactions affect the revenue or expenses of more than one accounting periods.
Holter Inc. owns an investment that generated $120,000 cash revenue and required $26,500 cashexpenses this year. Holter's marginal tax rate is 30%. Which of the following statements is false?
A. Holter's before-tax cash flow is $93,500
B. If the revenue is taxable, but only $19,000 of the expenses are deductible, Holter's
I am having a problem with the following problem on accrual:
The records for a company showed the following for 2007:
Accrued expenses Jan 1 $1,800 Dec 31 $2,150
Prepaid expenses Jan 1 $ 720 Dec 31 $ 870
Cash paid during the year for expenses $42,500
Show the computation of
1. When accrued liability increase from the beginning to the end of the year, it means cash was not expended for some of the company's operating expenses so the increase would be added to net income to convert to cash flow from operating activities under the indirect method.
True or False
2. A transaction that does not cau