Author Question: The homogeneous cost pools and the choice of cost-allocation bases give managers greater confidence ... (Read 163 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?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

For a complete list of videos, visit our video library