Author Question: The homogeneous cost pools and the choice of cost-allocation bases give managers greater confidence ... (Read 159 times)

piesebel

  • Hero Member
  • *****
  • Posts: 565
The homogeneous cost pools and the choice of cost-allocation bases give managers greater confidence in the activity and product cost numbers from single indirect-cost pool systems.
 
  Indicate whether this statement is true or false.

Question 2

For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much. a) The adjustment for unearned fees of 3,260 was journalized as a debit to Accounts Payable for 3,260 and a credit to Fees Earned of 3,260. b) The adjustment for supplies expense of 425 was journalized as a debit to Supplies Expense for 542 and a credit to Supplies for 425.



amcvicar

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

Answer: FALSE

Answer to Question 2

a) The trial balance totals will still be equal, but the balances of Unearned Fees and Accounts Payable will be incorrect as the debit should have been made to Unearned Fees instead of Accounts Payable.
b) The debit total exceeds the credit total by 117.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

For a complete list of videos, visit our video library