Which of the Following Statements Is Not Correct

question 36

Multiple Choice

Which of the following statements is not correct?

• A) Uncollectible Accounts Expense is a contra asset account.
• B) The cost less the salvage value equals the depreciable base of a long-term asset.
• C) Each adjustment for an accrued expense includes a credit to a liability account.
• D) If a firm records prepaid expense items in an expense account when they pay for them,their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account.

Understand how changes in balance sheet accounts affect cash flows and figure into the cash flow statement.

Distinguish between the accounting treatments and financial reporting under US GAAP and IFRS, especially regarding cash flow reporting.

Learn about the components of a company's balance sheet (assets, liabilities, equity) and their definitions.

Analyze financial flexibility and liquidity measures and how they reflect a company's ability to meet its obligations and take advantage of investment opportunities.

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Definitions:

Inappropriate Behavior

Actions or conduct that are not suitable or proper in a given context or situation.

Autism Spectrum Disorders

A range of neurodevelopmental conditions characterized by challenges with social skills, repetitive behaviors, speech and nonverbal communication.

Repetitive Behaviors

Actions repeated in a similar manner over time, often observed in individuals with autism spectrum disorders but can occur in typical development as a means of learning or coping.

Communication Problems

Issues or barriers encountered in the process of exchanging information, ideas, or feelings between individuals or groups.