The matching principle states:

ABC purchases a piece of equipment of January 1, 2016.  The cost of the equipment is $46,000.  The company expects to use the equipment for 6 years and that the salvage value at the end of 6 years will be $16,000.  After 2 years, the company sells the equipment for $35,000.  Given that ABC uses the straight line method for calculating depreciation expense, what is the gain/(loss) on the sale of the equipment after 2 years?

ABC pays its employees for work performed during the month.  The total wage expense is $100,000.  The Federal Income Tax Rate is 20%, the State Income Tax Rate is 5%, and the FICA Tax Rate is 6% (both the employer and the employee portion).   What is the payroll entry ABC needs to make to record this event?

When examining the Statement of Cash Flows, what general trend is a financial statement user looking for?

Company A purchases goods for cash on January 15.  They purchase 10 items at a cost of $50 per item.  5 of these items are sold on January 29 for $700 cash.  What is/(are) the entry/(ies) on January 29 to record the sale of the goods?

ABC is a reseller of goods.  The following transactions took place during March for ABC as it pertains to inventory: March 1     Inventory Balance of 200 units purchased at $20/Unit March 7     Purchased 200 units at $22/Unit March 10   Sold 300 units at a price of $40/Unit March 15   Purchased 100 units at $23/Unit March 21   Sold 150 units at a price of $40/Unit March 25   Purchased 100 units at $24/Unit What is the COGS for the month of March assuming the company is using the Perpetual – FIFO methodology for inventory valuation?

Assuming that prices do rise over time (i.e., inflation), which inventory valuation methodology will always result in the lowest net income for a company?

What is the impact on the income statement and cash flow from writing off an account receivable?

The net book value of a fixed asset that was acquired three years ago is equal to

Company A had the following information available at the end of the year: Cash Flow from Operations:  $1,000 Depreciation Expense $400 Decrease in A/R  $200 Decrease is A/P $300 What was the net income for the year?