90.2K

Verified Solution

Link Copied!

In order for accounting information to be relevant, it must

help predict future events or confirm prior expectations.

have very little cost.

not be reported to the public.

be used by many different firms.The following is selected information from L Corporation for the fiscal year ending

October $31,2022.$

Cash received from customers

$2021$ that will

be used for $3$ years

$48,000$

Expenses incurred including any depreciation $216,000$

Proceeds from a bank loan, part of which

was used to

pay for the computers

$100,000$

Based on the accrual basis of accounting, what is L Corporation's net income for the

year ending October $31,2022?$

$$270,000$

$$208,000$

$$224,000$

$$254,000$

If service for $$175$ had been performed but not billed, the adjusting entry to record

this would include a

credit to Unearned Service Revenue for $$175.$

credit to Service Revenue for $$175.$

debit to Unearned Revenue for $$175.$

debit to Service Revenue for $$175.$

On April $1,2022,$ Propel Corporation paid $$48,000$ cash for equipment that will be

used in business operations. The equipment will be used for four years. Propel

records depreciation expense of $$48,000$ for the calendar year ending December $31,$

Which accounting principle has been violated?

No principle has been violated.

Cash principle.

Depreciation principle.

Expense recognition principle.

stion $43(1$ point$)$

Answer & Explanation Solved by verified expert

See Answer