Bad debt expense is normally reported on the income statement as a(n) a. Operating expense b. Offset agaisnt gross c. Financial expense in the order items section d. Contra-revenue amount

Q: Liabilities which are estimated and payable are; Select one: O a. Not reported on the balance sheet…

A: Liabilities represents the obligation of the entity. It is the amount which is to be paid by the…

Q: Which of the following best describes Accrued Liabilities?a. Long-term liabilities.b. Current…

A: Accrued liabilities are also known as outstanding liabilities. It means those liabilities which are…

Q: The function of expense method reports gross margin and income from operations. True False

A: In function of expense method, the expenses are allocated based on the activity from which such…

Q: Which of the following items will not be shown in the balance sheet of ahotel

A: Balance sheet is an orderly arrangement of assets and liabilities of a  business entity on a…

Q: Which of the following accounts normally has a debitbalance?a. Unearned Revenueb. Rent Expensec.…

A: correct option is b.) Rent Expense Generally Assets, expenses, losses, and the owner's drawing…

Q: Which situation indicates a net loss within the Income Statement section of the worksheet? a. Total…

A: In an income statement , credits refers to income and debits refers to expenses. Net loss occurs…

Q: Net Income is calculated as follows: NI = NII – Burden - PL + SG-T Where, bank burden (non-interest…

A: Formula: NI = NII - Burden - PL - + SG - T NI stands for Net Income.

Q: Determine the bad debt expense for year 2 based on the preceding facts

A: Bad debt represents the amount that is not recoverable from the customers of the company.

Q: Which of the following is the account where the increases are recorded to the receivable side and…

A: Company sell products on credit and these selling create customers on credit so these are to be…

Q: Which income statement account(s) would be affected by a policy choice at the same time as the…

A: Inventory is directly related to the cost of goods sold. To change the policy of valuation of…

Q: Which of the following accounts would never be reportedin the income statement as an expense?a.…

A:

Q: The preferred method of accounting for uncollectible accounts is ? A) net realizable method. B)…

A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

A: Allowance method:   It is a method for accounting for uncollectible receivables, where uncollectible…

Q: The account, Discount on Notes Payable, is a a.contra-asset. b.deferred charge. c.liability.…

A: Discount on notes payable -  It is the amount payable by the concerned investor is less than the…

Q: How are anticipated administrative expenses reported on a statement of financial affairs?a. As a…

A: The administrative expenses are incurred in the day-to-day operations of the company. These are…

Q: If total expenses exceed total revenue a net loss is reported on an income statement Select one:…

A: Net Income in the income statement is the residual income attributable to share holders  Net income…

Q: Is sales listed as liability equity revenue expense or an account

A: Sales generate revenue for the business. It is main purpose of the business to make more and more…

Q: A debit balance in the Income Summary account represents a net loss. O True O False

A: The income summary account is a nominal account used to close the temporary accounts of the business…

Q: The Sales Returns and Allowances account is reported as a

A: Sales Return refers to the process of returning goods by a customer back to the company or…

Q: Which situation indicates a net loss within the Income Statement section of the worksheet? Total…

A: Income statement:Income statement is the financial statement which reports revenues and expenses…

Q: Which of the following accounts should normally be classified as a current liability? Multiple…

A: Current Liability are amount payable by the company with in 12 month.

Q: The direct write-off method requires estimates of: *       (a) Uncollectible accounts expense…

A: Direct write off method means where bad debts is written off when it actually occus. No estimates is…

Q: Which of the following is a contra-liability account? a. Notes Payable b. Discount on Notes Payable…

A: Contra liability refers to a liability which is debited for the purpose of offsetting the credit of…

Q: ndicate the normal balance and category of each of the following​ accounts:   CATEGORy options ARE:…

A: All expenses, losses, and assets should be debited and all income, gain, and liabilities should be…

Q: Determine the following by preparing a multi-step form of SCI.  Bad debts expense Gross Profit…

A: Multi Step Income statement is one of the income statement of business, which shows all incomes and…

Q: Which of the following statements is false? Group of answer choices A)The journal entry to record…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: Which item would not appear on a Balance Sheet?     a. Gross Profit b. Accounts Receivable c.…

A: Gross Profit - Gross Profit is defined as net sales minus the cost of goods sold.  Since it shows…

Q: The practice of recording advance payments from customers as a liability is an example of applying…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: what is the expense account for provision for non - collection from customers. * bad debt expense O…

A: The cost of operations that a firm incurs in order to earn revenue is referred to as an expense.…

Q: Sales Returns and Allowances account is report it like

A: Sales returns occur when goods are given back by the customer due to defects in terms of…

Q: Accounts receivable can be classified as _____ a. A Expense. b. A Liability. c. A Capital d. An…

A: The correct answer is  d. An asset

Q: How are gain contigencies reported in the financial statements?

A: A gain contingency A  gain contingency  is a possible gain arising from past events but whose…

Q: Recording bad debt expense under the allowance method will have what effect on the financial…

A: The allowance method involves setting aside a reserve for bad debts that are expected in the future.…

Q: Which of the following item should not appear in the Income Statement (Profit and Loss Account):…

A: Income statement also known as the profit and loss account shows the expenditures and income of the…

Q: unlike depreciation and retained earnings, the interest expense does not have to directly tie on any…

A: Depreciation is shown both under the balance sheet and the income statement. Retained earnings are…

Q: Unearned income is credited to the Profit and loss account. Do you agree with the statement?

A: Unearned income is the revenue received in advance for services to rendered in future. For example,…

Q: Which situation indicates loss on the income statement a. Total debits exceed total credits b.…

A: Income statement is a statement show the gross profit and net profit earned by comparing the sales…

Q: Known liabilities of estimated amounts are a. ignored. (Record them when paid.) b. reported on the…

A: According to prudence concept a company should recognise all the possible liabilities as soon as…

Q: Which of the following accounts has a normal debit balance? A. Interest Revenue B. Inventory C.…

A: All assets and expense accounts normally have debit balance. All liabilities and incomes would…

Q: Which accounting concept is applied when an entry is made for provision for bad debts? A. Going-…

A: A. Going - concern - Under this concept , it is assumed that an entity will continue its operation…

Q: Advanced collections from customers prior to the performance obligation being satisfied is accounted…

A: 1) Advanced collections from customers prior to the performance obligation being satisfied is…

Q: When using the allowance method, failure to record bad debt expense would have what effect on the…

A: Failure to record Bad Debt expense (Direct impact): Expense (Bad debt Expense) understates…

Q: In profit and loss account, if debit is more than the credit, the difference is [A] net profit [B]…

A: In profit & loss (P&L) account the difference between debit and credit balances is termed as…