The accounting principle which requires that a company always try to understate the value of its assets or income is:

Select one:

Unrecorded revenue

Accrued revenue

Unearned revenue

Prepaid revnue

None of the above

Which of the following IS NOT a satisfactory statement of the accounting (balance sheet) equation?

Select one:

a. Assets = Liabilities - Owner's equity

b. Assets - Liabilities = Owner's equity

c. Assets = Liabilities + Owner's equity

d. Assets - Owner's equity = Liabilities

e. None of the above, because all are satisfactory statements of the balance sheet equation

On March 31, Calvin Co owed employees $800 in salaries that the company will pay in April. What is the adjusting entry that will be required (if any) on March 31 in the quarterly financial statements?

Select one:

Increase Salary expense; decrease Accounts payable with $800

Increase Salary payable and decrease Salary expense with $800

Increase Salary expense and decrease cash with $800

Increase Salary expense and increase Salary payable with $800

None of the above because no entry is required.