Digger Oil & Gas Has Received Its Invoice in the Amount

question 17

Multiple Choice

Digger Oil & Gas has received its invoice in the amount of $85,000 for property taxes for the year 2010.The invoice was received and paid in June 2010 and the entire amount was debited to property tax expense.Assuming Digger does NOT prepare interim financial statements, the required adjustment on December 31, 2010 is

• A)debit property tax expense and credit prepaid property tax $49,583.
• B)debit prepaid property tax and credit property tax expense $49,583.
• C)debit property tax expense and credit prepaid property tax $35,417.
• D)no entry required.

Understand how technological improvements and wage changes affect the firm's use of capital and labor.

Understand the concepts of elastic and inelastic demand for resources, and how the presence of substitutes affects this elasticity.

Learn the effects of wage changes on the quantity of labor demanded and the elasticity of labor demand.

Understand the factors leading to shifts in the labor demand curve.

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Definitions:

Insurance

A financial product sold by insurance companies to safeguard against financial losses from specific risks, such as accidents, theft, or natural disasters.

Adjusting Entry

An accounting entry made in the journals at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, listing revenues and expenses to show net profit or loss.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.