« previous next »

Author Question: A government allows discounts on taxes if payments are made within two months of the levy date. How ... (Read 51 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
on: Jul 6, 2018
A government allows discounts on taxes if payments are made within two months of the levy date. How does the government account for the discounts as they are being taken?
 
  A. Allowance for discounts is debited for the amount of the discounts taken.
  B. Expenditures are debited for the amount of the discounts taken.
  C. Revenue is debited for the amount of the discounts taken.
  D. Allowance is credited for the discount and is recorded at the time the discount is taken.

Question 2

A reversing entry could be used if
 a. there is an adjusting entry.
  b. the adjusting entry increases an asset or liability account.
  c. the adjusting entry account did not have a previous balance.
  d. all of these were true.
  e. none of these were true.


ju

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jul 6, 2018
Answer to Question 1

A

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Elastic fibres are made of elastin, one type of structural protein found in the ECM of animal cells Elastic fibres are made of elastin, one type of structural protein found in the ECM of animal cells
The fibers are made up of many myofibrils The fibers are made up of many myofibrils
An experimentally made Oldowan type core. An experimentally made Oldowan type core.
EMERGENCY TRAUMA ASSESSMENT MADE EASY EMERGENCY TRAUMA ASSESSMENT MADE EASY
The constitutional division of Powers Between the National Government and the States The constitutional division of Powers Between the National Government and the States
A promissory note has a face value of $6000 and it has a date of issue of June 1 this year. The ... A promissory note has a face value of $6000 and it has a date of issue of June 1 this year. The ...
Video: DNA close up Animation

For a complete list of videos, visit our video library