On December 31, Year 1, Gaskins Co. owed $4,500 in salaries to employees who had worked during December but will not be paid until January, Year 2. If the year-end adjustment is properly recorded on December 31, Year 1, what will be the effect of this accrual on net income and cash flows from operating activities reported for Year 1?
a. No effect on net income; no effect on cash flow from operating activities
b. Decrease in net income; no effect on cash flow from operating activities
c. Increase in net income; decrease in cash flow from operating activities
d. No effect on net income; decrease in cash flow from operating activities
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On December 31, Year 1, Gaskins Co. owed $4,500 in salaries to employees who had worked during December but will not be paid until January, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
1. We are taking the proactive step of issue all of our customers new chip-enabled credit cards to replace expired or lost cards and prevent increasingly costly payouts we have suffered from fraud.
Answers (1)
A brand community refers to the: A. relatively permanent, homogeneous divisions in a society that consists of people who share similar values, interests, behaviors, and brands. B. those brands with whom a person does not wish to be identified. C.
Answers (1)
Taylor company has current sales of 1,000 units, which generates sales revenue of $190,000, variable costs of $76,000 and fixed expenses of $96,000. the company believes sales will increase by 300 units, if advertising increases by $20,000.
Answers (1)
Cash flows from operating activities are $200,000; cash flows from financing activities are $150,000; capital expenditures are $90,000; and dividends are $20,000. a. How much is free cash flow?
Answers (1)
A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger. This can be done on all of the following levels except:
Answers (1)
New Questions in Business
If a bank depositor withdraws $1000 of currency from an account, what happens to bank reserves, checkable deposits, and the monetary base? Assume that the required reserve ratio on checkable deposits is 10% and banks do not hold any excess reserves.
Answers (1)
During the Great Depression, consumer spending was higher than ever in history. Question 10 options: True False
Answers (2)
A property is being appraised by the cost approach. The appraiser estimates that the land is worth $17,000 and the replacement cost of the improvements is $235,000. Total depreciation from all causes is $23,000.
Answers (1)
NorthWest Corp. obtained the following information from its accounting records: Sales $70,000 Beginning Finished Goods Inventory $10,000 Ending Finished Goods Inventory $46,000 Cost of Goods Sold $22,000 Ending Work-in-Process Inventory $30,000
Answers (1)
Sally is buying a home and the closing date is set for April 20th. The annual property taxes are $1,234.00 and have not been paid yet. How much will the buyer be credited and the seller be debited?
Answers (1)