The correct answer to question is option A. A debit entry is recorded on the left side of a T-account. A credit entry is recorded on the right side of a T-account. Assets have a debit balance, while liabilities and shareholders' equity have a credit balance.

Ethics are the humanly devised rules, procedures, and norms to judge one’s action as right or wrong, honest or dishonest, and fair or not fair.

Salary payable is an example of current liabilities.

The time-period concept assumes that unlimited economic life of a company will be divided into regular intervals and that financial statements will be prepared for specific periods such as a month, quarter, or year.

The correct answer to question is option A. Because service revenue has a credit balance.

500,000 - 60,000 = 440,000 / 40 = 11,000 depreciation of each year

As of December 31, 2019 = 4 x11,000 =44,000

Managers are internal information users and the others are external users.

The time-period concept assumes that unlimited economic life of a company will be divided into regular intervals and that financial statements will be prepared for specific periods such as a month, quarter, or year.

Book Value of an asset is the depreciable
asset’s cost minus the asset’s accumulated
depreciation.

Advertisement Expense, Supply Expense, Depreciation Expense and Salaries-Wages Expense are credited with the same amount of their debit balances, and Income Summary account is debited. After the journal entry, the accounts will show up like:

Notes Receivable. A note receivable is similar to an account receivable, but a note receivable is more formal than Accounts Receivable because the customer signed a formal note. Notes receivable usually includes interest. the correct answer is E.

Liquidity is the measure of how quickly and easily an account can be converted into cash

Balance sheet reports the assets, liabilities and the owner’s equity in a specific date.

Profit/loss = revenues + expenses. This means 1.000.000 - 450.000 = 550.000

Straight-line depreciation method allocates an equal amount of depreciation for each period. The correct answer is A.

Information users need to know how well company is performing. Actually, companies will identify and record the company’s financial events on daily basis. To summarize and give information about the company’s ending position at the end of the period, they must prepare their financial statements by using the accounts balances. This process will begin with the trial balance. This trial balance is unadjusted because the accounts are not yet ready to prepare the financial statements. The reasons that are as follows:
1. Some financial events are not recorded on a day-to-day basis because it is unwise to do so such as consumption of supplies or the earnings of salaries by employees.
2. Some costs are not recorded during the current accounting period because these costs expire with the passage of time rather than as a result of recurring daily transactions such as rent expense or insurance expense.
3. Some types of expenses may be unrecorded. For example, an electricity bill may not be received until next accounting period.

The correct answer is question E. In cash basis accounting, companies record revenues when they receive the cash and they record the expenses when the cash is paid.

Non-current assets include the assets acquired to be used in business ‘s operations for more than 12 months and receivables of which due dates are more than 12 months and examples of non-current assets include investments in other companies, intellectual property (e.g. patents), and property, plant and equipment. 

Assets = Liabilities + Owner’s Equity

750 = 300 + Owner’s Equity

Owner’s Equity =450