FREE Trial

In February 2020, Xia Lin invested an additional 12,000 in her business, Lins Pharmacy, which is organized as a proprietorship. Lins accountant, Sal Costa, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate? Why or why not?

Chapter 1, Questions #18

In February 2020, Xia Lin invested an additional ¥12,000 in her business, Lin’s Pharmacy, which is organized as a proprietorship. Lin’s accountant, Sal Costa, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate? Why or why not?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Answer expert-answer


No, this treatment is not proper. While the transaction does involv…View the full answer

answer-question
Related Book For answer-question
Accounting Principles

Accounting Principles

IFRS global edition

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

ISBN: 978-1119419617

Answers for Questions in Chapter 1

Brief Exercises:
Critical Thinking:
DO IT! Exercises:
Exercises:
GAAP Exercises:
Problems:
Questions:

Students also viewed these Business questions