题目内容
A business purchased equipment by issuing a one-year note. Recording the transaction requires an asset to be debited and long-term liability to be credited.
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Accrued expenses are expenses which relate to an accounting period but have not been paid.
A company borrows $88,500 on September 1, 2014 from the bank by signing an $88,500, 6% note, due August 31, 2015. The accrued interest on December 31, 2014 should be 5310.
Accrued expenses are charged against the profit and therefore they are shown in the income statement.
Provision is a liability of uncertain timing or amount.
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