In Which of the Following Situations Would an Adjusting Entry

question 45

Multiple Choice

In which of the following situations would an adjusting entry be made at the end of January to record an accrued expense?

• A)Ramona's Nursery purchased playground equipment on January 1 with an estimated useful life of six years.
• B)On January 25,Ramona's Nursery hired a college student to drive the minibus;the new employee is to begin work in February.
• C)January 31 falls on a Tuesday;salaries are paid on Friday of each week.
• D)On January 31,Ramona's Nursery paid the interest owed on a note payable for January.

Understand the acquisition and maturity value handling of bonds.

Understand and record transactions related to controlling and significant influence in equity securities.

Differentiate between types of investments based on intentions like held-to-maturity, available-for-sale, and trading securities.

Comprehend the accounting treatment for foreign exchange transactions and the impact of exchange rate fluctuations.