객관식
Net worth is calculated by subtracting liabilities from which of the following?
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1. Introduction to Accounting
Fundamental Accounting Equation
객관식
When an employee takes vacation time off and the company recognizes vacation pay as an accrued expense, what is the impact on the fundamental accounting equation (\(\text{Assets} = \text{Liabilities} + \text{Equity}\))?
A
Liabilities increase and equity decreases; assets remain unchanged.
B
Liabilities increase and assets remain unchanged; equity remains unchanged.
C
Assets decrease and liabilities decrease; equity remains unchanged.
D
Liabilities increase and assets decrease; equity remains unchanged.
검증된 단계별 안내1
Step 1: Begin by understanding the fundamental accounting equation: Assets = Liabilities + Equity. This equation must always remain balanced.
Step 2: Recognize that vacation pay is an accrued expense. Accrued expenses are liabilities because they represent obligations the company owes but has not yet paid.
Step 3: When the company recognizes vacation pay as an accrued expense, it increases liabilities since the company now owes the employee for the vacation pay.
Step 4: Analyze the impact on assets. In this scenario, assets remain unchanged because no cash or other asset is immediately used or reduced when the liability is recorded.
Step 5: Consider equity. Equity remains unchanged because the recognition of accrued vacation pay does not directly affect the owner's investment or retained earnings at this point.
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