At the time a firm adjusts Merchandise Inventory, the Income ...

[erika]

At the time a firm adjusts Merchandise Inventory, the Income Summary account
 a. contains two closing entries.
   b. has no balance.
   c. contains an adjusting entry for unearned revenue.
   d. contains the last fiscal period's adjusting entry for Merchandise Inventory.
   e. contains an adjusting entry for expired prepaid insurance.

Question 2

Assume that the following is found on the statement of activities of a local municipality:
   Public safety expenses of 2,755,500
   Public safety charges for services of 20,500
   Public safety operating grants and contributions of 105,000
 
   Public safety capital grants and contributions of 75,000
   General government charges for services of 455,500
   Property tax general revenues of 2,905,000
   Unrestricted grants of 300,000
  Net (expense) revenue for the public safety function would be
  a. 350,000
  b. 1,105,500
  c. (2,555,000)
  d. 2,555,000
  e. (805,500)

[amynguyen1221]

Answer to Question 1

b

Answer to Question 2

C

[erika]

Gracias!

[lcapri7]

Excellent