Identify each of the following events as an accrual, deferral, or neither: a. Incurred other operating expenses
Question:
Identify each of the following events as an accrual, deferral, or neither:
a. Incurred other operating expenses on account.
b. Recorded expense for salaries owed to employees at the end of the accounting period.
c. Paid a cash dividend to the stockholders.
d. Paid cash to purchase supplies to be used over the next several months.
e. Paid cash to purchase land.
f. Provided services on account.
g. Collected accounts receivable.
h. Paid one year’s rent in advance.
i. Paid cash for utilities expense.
j. Collected $2,400 in advance for services to be performed over the next 12 months.
k. Recognized revenue on account at the end of the period.
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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