Blog

The adjusting entry to record an accrued expense is:

The return on total assets can be calculated as profit margin times total asset turnover.

An expense account is normally closed by debiting Income Summary and crediting the expense account.

The return on total assets can be calculated as profit margin times total asset turnover.

The revenue recognition principle: 

Investing activities include (a) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments, and (c) lending and collecting on loans.

The full disclosure principle:

The dividends account normally has a debit balance.

The dividends account normally has a debit balance.

To be classified as a cash equivalent, the only criterion an item must meet is that it must be readily convertible to a known amount of cash.