A business uses a credit to record:

Elephant Company had income of $350 million and average invested assets of $2,000 million. Its return on assets (ROA) is:

A company paid $9,000 for a twelve-month insurance policy on February 1. The policy coverage began on February 1. On February 28, $750 of insurance expense must be recorded.

Carter Services paid K. Carter, the sole shareholder of Carter Services, $5,700 in dividends  during the current year. The entry to close the dividends account at the end of the year is:

The primary objective of managerial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization’s activities.

Preparation of a trial balance is the first step in processing a financial transaction.

Rodriguez owns an asset that cost $87,000 with accumulated depreciation of $40,000. The company sells the equipment for cash of $42,000. At the time of sale, the company should record:

Celebration Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:

Foggy Bottom, LLC records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1.

Chapman Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that Chapman Consulting will make to record the cash payment. Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.