The margin of safety is computed by dividing 1 by the degree of operating leverage

On March 31, Paris Enterprises received $36,000 in payment for annual advertising contracts and recorded it as advertising revenue. If the revenue is earned equally each month, the adjusting entry on June 30 will include a(n) ________

A) a credit to Prepaid Expenses for $27,000 B) credit to Unearned Revenue for $9,000 C) debit to Advertising Revenue for $27,000 D) credit to Advertising Revenue for $9,000

A zero-interest-bearing note payable that is issued at a discount will not result in any interest expense being recognized

Indicate whether the statement is true or false.