On June 1, 2017, Joanne White Buys a Copier Machine

question 92

Multiple Choice

On June 1, 2017, Joanne White buys a copier machine for her business and finances this purchase with cash and a note. When journalizing this transaction, she will

• A) use two journal entries.
• B) make a compound entry.
• C) make a simple entry.
• D) wait until the end of the month to record the entry.

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Definitions:

Conservatism

In accounting, it is a principle that requires potential expenses and liabilities to be recognized immediately, but revenues only when they are ensured.

Indirect Planning Assumptions

Presumptions made about external factors that could influence an organization's planning, without direct control over them.

Direct Planning Assumptions

Fundamental assumptions that are explicitly stated and used as a base in the strategic planning and forecasting processes.

Financial Ratios

Financial Ratios are quantitative measures derived from a company's financial statements to assess its performance, efficiency, profitability, and financial health.