Question
1- There are four transactions that directly affect Owners Equity. Which are the two transactions that decrease Owners Equity? 1. Owners withdrawals and expenses 2.
1- There are four transactions that directly affect Owners Equity. Which are the two transactions that decrease Owners Equity? 1. Owners withdrawals and expenses 2. Owners investments and expenses 3. Revenues and expenses 4. Owners investments and revenues
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2- The net book value of a fixed asset is determined by 1. Original cost plus accumulated depreciation 2. Original cost less depreciation expense 3. Original cost less accumulated depreciation 4. Original cost less accumulated depreciation plus depreciation expense
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3- What is the proper adjusting entry at April 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $16,000, and unexpired amounts per analysis of policies, $6,000? 1. debit Prepaid Insurance, $10,000; credit Insurance Expense, $10,000 2. debit Insurance Expense, $6,000; credit Prepaid Insurance, $6,000 3. debit Insurance Expense, $10,000; credit Prepaid Insurance, $10,000 4. debit Insurance Expense, $16,000; credit Prepaid Insurance, $16,000
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