Adjusting Journal Entries (F1:M8) Flashcards
1
Q
what is the formula to find accrued revenue?
A
begin balance + X - cash collections = ending balance
solve for X
2
Q
if an unrecorded liability affects WIP inventory, does it have any impact on COGS/RE?
A
no. liabilities would be understated though.
3
Q
is interest payable recorded for a noninterest bearing note?
A
no, the interest is implicit in the face value of the note and will already be accounted for in the CV of the NP on the BS.
4
Q
what do “advances” affect?
A
cash flow, but not accrual basis expense; therefore, its a distractor
