Please help on Another 5 True or False Accounting questions?
Please help on Another 5 True or False Accounting questions?
1.Recording business costs in terms of hours required to complete projects in an application of the unit of measurement concept.
2.The capital account is an owner?s equity account.
3.If two amounts are recorded on the same side of the accounting equation, the equation will no longer be in balance.
4.When a company pays insurance premiums in advance to an insurer, it records the payment as a liability because the insurer owes future coverage.
5.When items are bought and paid for later this is referred to as buying on account.
Answers:
Chosen Answer
Annora: 1. T 2. T 3. F - an example of how you can record something on one side of the equation is purchasing assets for cash. It only affects the assets but the accounting equation still balances. 4. F - the insurer would record a liability, but the insured has a prepaid expense 5. T
2008-09-01 12:36:49
Annora: 1. T 2. T 3. F - an example of how you can record something on one side of the equation is purchasing assets for cash. It only affects the assets but the accounting equation still balances. 4. F - the insurer would record a liability, but the insured has a prepaid expense 5. T
2008-09-01 12:36:49