The difference between current assets and current liabilities is called working capital.

A) True

B) False

A post-closing trial balance will contain only

A)income statement accounts.

B)asset accounts.

C) owners capital accounts.

D)balance sheet accounts.

Concord Construction has an October 31 year end. On October 20 Concord received a payment from Tamarisk Industries in the amount of $ 24300 as an advance on the construction for the new head office of Tamarisk. Construction was to have started October 25 but due to an early snowfall, construction did not start until November 7. Construction is scheduled to be completed December 31. Following the revenue recognition criteria, the revenue which Concord should record in its October 31 Financial Statements is

A)$ 10100.

B)$ 3900.

C)0.

D)none of the above.

If a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements?

A)Assets will be overstated and profit and owner's equity will be understated.

B)Assets will be overstated and profit and owner's equity will be overstated.

C)Expenses will be overstated and profit and owner's equity will be understated.

D)Failure to make an adjustment does not affect the financial statements.

A debit to an asset account always indicates

A)an error.

B)a credit was made to a liability account.

C)a decrease in the asset.

D)an increase in the asset.

Which of the following transactions would NOT affect Cash?

A)prepaying an insurance premium

B)purchase of supplies on account

C)payment to a supplier on account

D)payment of salaries for the week