Author Question: Macky McClung uses accrual accounting to keep the records of her toy store. She paid 15,000 on ... (Read 141 times)

tsand2 · **on:** Jul 5, 2018

Macky McClung uses accrual accounting to keep the records of her toy store. She paid 15,000 on January 1 for rent for the three months January-March.

To correctly report her expenses for the month of January, what must her accounting entry accomplish?
a. increase expenses by 5,000 and decrease assets by 10,000
b. increase expenses by 5,000 and decrease assets by 5,000
c. increase expenses by 10,000 and decrease assets by 5,000
d. decrease expenses by 5,000 and increase assets by 5,000

Question 2

The amount an item can be sold for under normal economic conditions is the ___________________ _.
Fill in the blank(s) with correct word