Answer:
A. Restrict access
C. Establish responsibility
D. Document procedures
B. Independently verify
Explanation:
A. Restrict access, as the password is set to address the cash register, that is a security is being provided, and this is because, there is a restricted access, for the safety purpose.
C. Establish responsibility - As the treasurer is held liable of making and receiving any checks, and that he is the person who shall monitor such things, related to transactions in checks.
D. Document procedures - since a list is prepared for the checks received in mail, it is mere preparation of records and documentation of what checks are received and what not.
B. Independently verify - Bank Reconciliation Statement is prepared to verify the transactions and match the balance in books with that of the bank pass book.
Answer:
County Medical Center
These unrestricted contributions of $22,000 used to support general services would be reported on the statement of cash flows as:
cash from operating activities.
Explanation:
Unrestricted contributions received by the County Medical Center are funds or other assets given to the Center with no restriction on their use. Unrestricted contributions are usually directed at the funding of operational expenses, as the County Medical Center demonstrated. Therefore, they are listed under operating activities in the Statement of Cash Flows.
The numerator of the return on common stockholders' equity is net income minus preferred dividends.
Option d
<u>Explanation:</u>
Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.
<em>Use of return on equity:</em>
- Isolates common equity returns
- Can be used to evaluate dividends
- Evaluates the use of capital by the management
It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.
That is,
Hence, net income minus preferred dividends is the right answer.
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Answer:
1.
Dec 31 Rent expense $3450 Dr
Prepaid Rent $3450 Cr
2.
Oct 1 Prepaid Rent $13800 Dr
Cash $13800 Cr
3.
Year end balances at 31 December:
Rent Expense = $3450
Prepaid Rent = $10350
Explanation:
Assumption: The year end for the business in on 31 December.
1.
The rent is paid in advance thus it is an asset. On 31 December the adjusting entry will be made under the accrual principle to match the current period's rent expense and record it in the period to which it belongs to. Thus we will credit the rent expense for 3 months i.e. October, November and December. We will credit the asset account that is Prepaid Rent.
2.
The prepayment of rent is creating an asset account in the title of prepaid rent. The entry would be to record the asset prepaid rent by the full amount of the rent prepaid and credit the other asset account through which the payment is being made.
3.
The adjusted year end balance for rent expense will be the rent expense paid for this period that is $1150 * 3 = 3450
The balance in the prepaid rent account after adjusting the rent expense will be,
Prepaid rent = 13800 - 3450 = $10350