3 01 in a corporate balance sheet with outstanding common haresa equity structur
ID: 2593526 • Letter: 3
Question
3 01 in a corporate balance sheet with outstanding common haresa equity structure which account is debited when dividends are pa and a complex a. Cash b. Retained Earnings c. Additional Paid In Capital d. Treasury Stock 3.02 Under GAPP, Plant assets and other lon accounting periods because: & term assets are depreciated over several a. The calculations to match their utility with earnings are too complex b. The assets will produce earnings and be useful over several c. Tax Law requires it d. None of the above future periods 3.03 The following are examples of internal controls a. The accountant matches receiving tickets to invoices b. The controller and CFO must BOTH sign all checks over $10,000 c. Both of the above d. Neither of the above The allowance method for A/R has advantages over the direct write off method, these include. 3.04 a. It is compliant with GAAP b. It complies with the matching principal c. It is more in line with the accrual method ofa d. All of the above ccountin -term liabilities is 3.05 The difference between current and long a. Current liabilities will be paid within one accountin b. Long-term liabilities are paid over several c. Neither of the above d. Both of the aboveExplanation / Answer
3.01 ) b) retained Earnings
Dr Retained Earnings
Cr Dividends payable
3.02) b) The assets will produce earnings and be useful over several future periods.
Plant Assets are long-lived assets that are used in the production or sale of other assets or services over several accounting periods.
3.03) c) Both of the above
3.04) d) All of the above
3.05) d) Both of the above
Liabilities which are payable with in one accounting cycle are Current Liabilities , otherwise Non-Current Liabilities.
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