Which of the following is correct?
A. If a company fails to record depreciation expense, net income and expenses are overstated.
B. If a company fails to record depreciation expense, stockholders' equity, net income, and assets are understated.
C. If a company overstates depreciation expense, net income is overstated and assets are understated.
D. If a company fails to record depreciation expense, net income and assets are overstated.

Agovernment receives a gift of cash and investments with a fair value of $200,000. the donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. the $200,000 gift should be accounted for in which of the following funds? a) general fund b) private-purpose trust fund c) agency fund d) permanent fund

Experienced problem solvers always consider both the value and units of their answer to a problem. why?

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)