If a company plans to continue business into the future, closing entries are not required.

The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating assets are subtracted from net income.

Clermont Industries reported Net income of $283,000 and average Total assets of $637,000. The Return on total assets is:

Refer to the following selected financial information from Port Elizabeth, LLC. Compute the company’s current ratio for Year 2.    Year 2   Year 1 Cash $ 37,500   $ 36,850   Short-term investments   90,000     90,000   Accounts receivable, net   85,500     86,250   Merchandise inventory   121,000     117,000   Prepaid expenses   12,100     13,500   Plant assets   388,000     392,000   Accounts payable   113,400     111,750   Net sales   711,000     706,000   Cost of goods sold   390,000     385,500  

The closing process is a step in the accounting cycle that prepares accounts for the next accounting period.

Investing activities do not include the:

The entry to establish a petty cash fund includes:

Accounts payable appear on which of the following statements?

Austin Company reported Net sales of $1,200,000 and Accounts Receivable, net of $78,500. The Day’s sales uncollected (rounded to whole days) is: