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Category: Business and Industry
Date Submitted: 11/11/2015 12:25 PM
1.2-29 Below is a list of qualitative characteristics of accounting. Following the list is a series of descriptive phrases.
A) faithful representation D) comparability
B) timeliness E) verifiability
C) relevance F) understandability
_____ 1. When information can make a difference in a decision
_____ 2. Accounting information is reported the same way by different companies.
_____ 3. The information must be capable of being checked for accuracy and completeness.
_____ 4. Making information available early enough to users to help them make decisions
_____ 5. Information must be complete, free from bias, and without material error.
_____ 6. Information must be transparent so it makes sense to reasonably informed users.
Required: Match each characteristic with the appropriate phrase.
Answer: 1 C 2 D 3 E 4 B 5 A 6 F
86. Prepare the December 31 year-end adjusting entries for Aaron’s Computer Services, Inc., using the following information:
A) On July 1, Aaron’s Computer Services received an advance payment of $16,000 for work to be performed evenly during the next 8 months.
B) The unadjusted balance in the Computer Supplies account was $3,500. As of the end of the year, $600 of computer supplies was left.
C) The depreciation on the Computer Equipment is $3,000 for the year.
D) Aaron’s Computer Services has one employee who is paid $1,000 each Friday for a five-day workweek. December 31 is on a Thursday.
E) A one-year insurance policy was purchased on November 1 for $2,400.
F) Aaron’s Computer Services has completed work for a client in the amount of $2,000 which has not yet been recorded.
Prepare the appropriate adjusting journal entries.
Answer:
|Dec 31...