The time period assumption:

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

Profitability is the ability to generate future revenues and meet long-term obligations.

The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.)

The amount of net income is added on the statement of retained earnings.

Vasquez Company reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, and a $100,000 decrease in notes payable. Calculate the cash provided (used) in operating activities using the indirect method.

Revenue and expense balances are transferred from the adjusted trial balance to the income statement.

Refer to the following selected financial information from Grasheim Corp. Compute the company’s current ratio.        Current Assets 306,450   Plant assets 388,000   Current Liabilities 107,800   Net sales 676,000   Net Income 75,000  

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee’s annual FICA taxes amount is:

A change in an accounting estimate is: