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In: Accounting

Question 6 (1 point) Value of Unsold Merchandise Goods will be shown in Income Statement as...

Question 6 (1 point)
Value of Unsold Merchandise Goods will be shown in Income Statement as Expense

True

False

Question 7 (1 point)
All business entities that are formed for earning profits, must follow Accrual basis of Accounting and are not allowed to use Cash Basis of Accounting.

True

False

Question 8 (1 point)
The Salaries Payable Account of James Bay Company Limited appears below:



What is the total salaries paid to employees in the year 2020? (cash payment)

a

$ 398,120

b

$ 375,600

c

$ 365,880

d

$ 388,400

Question 9 (1 point)
A Trial Balance with matching Debits and Credits totals, proves the accuracy of our accounting.

True

False


Question 6 (1 point)
Value of Unsold Merchandise Goods will be shown in Income Statement as Expense

True

False

Question 7 (1 point)
All business entities that are formed for earning profits, must follow Accrual basis of Accounting and are not allowed to use Cash Basis of Accounting.

True

False

Question 8 (1 point)
The Salaries Payable Account of James Bay Company Limited appears below:



What is the total salaries paid to employees in the year 2020? (cash payment)

a

$ 398,120

b

$ 375,600

c

$ 365,880

d

$ 388,400

Question 9 (1 point)
A Trial Balance with matching Debits and Credits totals, proves the accuracy of our accounting.

True

False

Solutions

Expert Solution

Ans. 6 Value of Unsold Merchandise good
The value of unsold goods is treated as current Assets and shown in Assets side of balance sheet and credit side of profit and loss statement
hence the above statement is false
Ans. 7 As per Accounting standard company can only follow accrual system of accounting
Hence the statement is true
Ans .8 NA
Ans. 9 Trail balance with matching Debit and credit may contain error of omission or error of commission
Hence it does not proves the accuracy and statement is false

ekkarill92 answered 3 years ago
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