Refer to the following selected financial information from Morrison Company. Compute the company’s accounts receivable turnover for Year 2.    Year 2   Year 1   Accounts receivable, net 86,500   82,750   Net sales 723,000   693,000  

On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:

As a general rule, revenues should not be recognized in the accounting records when earned, but rather when cash is received.

Wong Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. Based on this information, the amount of cash in the fund before the replenishment is:

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

A limited liability company offers the limited liability of a corporation and the tax treatment of a partnership or proprietorship.

Hastings Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the reimbursement of the fund on September 30 includes a:

A company’s balance sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and equity $72,000. What is the amount of liabilities?

The difference between the cost of an asset and the accumulated depreciation for that asset is called

As a general rule, revenues should not be recognized in the accounting records when earned, but rather when cash is received.