Prepaid expenses are eventually expected to become a. expenses in the period when they are paid...

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Prepaid expenses are eventually expected to become a. expenses in the period when they are paid Ob. revenues when the liability is no longer owed c. expenses when their future economic value expires or is used up Od. revenues when services are performed

Given the following data: EC SL,Year 1 $120,000 80,000 Total liabilities $128,250 95,000 Total owners equity Compute the ratio of liabilities to owners equity for each year. Round to two decimal places. Oa. 1.50 and 1.07, respectively Ob. 1.07 and 1.19, respectively Oc, 1.35 and 1.50, respectively Od. 1.19 and 1.35, respectively

When using a purchases journal, a.there will always be an Accounts Payable Cr. column b. all cash and credit purchases are recorded in the jo credit purchases are recorded in the journal Oc. the Other Accounts total is posted to Accounts Payable at months end d.posting to creditor accounts is only done at the end of the month

business accounting

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Answer 1

Answer #1


Q1.
Answer is c. Expenses when their future economic value Expires or is used up.
Explanation:
Prepaid expenses are advance paymemnet made for expenses which get exhausted in the future after use of such expenses in a particular period.


Q2.
Answer is c. 1.35 and 1.50, respectively
Explanation:
	Year 2	Year1
Total Liabilities	128250	120000
Divide: Total Owner's equity	95000	80000
Liabilities to owner's equity	1.35	1.5

Q3.
Answer is a. There will always be an 'Accounts Payable Cr.' Column

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Answer 2

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