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Which of the following transactions decreases both assets and owner's equity 1. When a company receives an electric bill but does not pay it right away, what is the required journal entry to be recorded? a. Utilities Expense – Debit; Accounts Receivable – Credit b. No entry is required until the bill is paid. c. Utilities Expense – Debit; Accounts Payable – Credit d. Accounts Payable – Debit; Utilitie ...

Other / Other 29 Apr 2016

Which of the following is an illustration of the classification issue 1. A purchase is recognized in the accounting records when a. payment is made for the item purchased. b. the purchase requisition is sent to the purchasing department. c. title transfers from the seller to the buyer. d. the buyer receives the seller's bill. 2. Which of the following is not a measurement issue in accounting? a. When to record a business tr ...

Other / Other 29 Apr 2016

The numbering scheme of a chart of accounts should contain no gaps True or False: 1. All companies use the same standard set of accounts. 2. The accounts in a chart of accounts are normally listed in alphabetical order. 3. The numbering scheme of a chart of accounts should contain no gaps. 4. Wages payable is a type of expense. 5. An owner's withdrawals are classified as an expense. Business Management ...

Other / Other 29 Apr 2016

Which pair of accounts follows the rules of debit and credit in the same manner 1. Which of the following accounts is increased with a credit? a. Supplies b. Fees Earned c. Supplies Expense d. Jane Garcia, Withdrawals 2. If Accounts Payable has debit postings of $17,000, credit postings of $14,000, and a normal ending balance of $6,000, what was its beginning balance? a. $9,000 Cr. b. $3,000 Cr. c. $9,000 Dr. d. $3,000 Dr ...

Other / Other 29 Apr 2016

In a journal entry, assets are always recorded before liabilities TRUE OR FALSE: 1. A net income of $10,000 means that the business received $10,000 more in cash from its customers than it spent to run the business. 2. Accounts Receivable and Accounts Payable are used when there is a time delay between a transaction and its related cash flow. 3. The journal is a chronological record of all transactions. 4. Entering t ...

Other / Other 29 Apr 2016

The ledger account form has a Balance column TRUE OR FALSE: 1. In a journal entry, credits are always indented. 2. In a journal entry, the Post. Ref. column is left blank until the entry has been posted. 3. It is sometimes correct for a compound entry's debit totals and credit totals to be unequal. 4. The ledger account form has a Balance column. 5. One might see “J5” correctly placed in the Post. Ref. ...

Other / Other 29 Apr 2016

The numbering scheme of a chart of accounts should contain no gaps True or False: 1. All companies use the same standard set of accounts. 2. The accounts in a chart of accounts are normally listed in alphabetical order. 3. The numbering scheme of a chart of accounts should contain no gaps. 4. Wages payable is a type of expense. 5. An owner's withdrawals are classified as an expense. Business Management ...

Other / Other 29 Apr 2016

Which of the following is a business event that is considered a recordable transaction 1. When a business records revenue before it has been earned, it has violated the measurement issue of a. recognition. b. evaluation. c. classification. d. valuation. 2. When a business reports an asset at an inflated dollar amount, it has violated the measurement issue of a. recognition. b. valuation. c. classification. d. realization ...

Other / Other 29 Apr 2016

Which of the following accounts has a normal debit balance 1. Which of the following accounts has a normal debit balance? a. Owner's Withdrawals b. Owner's Capital c. Unearned Fees d. Wages Payable 2. Which of the following accounts has a normal debit balance? a. Art Fees Earned b. Notes Payable c. Prepaid Insurance d. Unearned Art Fees 3. Which of the following accounts has a normal credit balance? a. Accounts Rec ...

Other / Other 29 Apr 2016

Which of the following business events is not a transaction 1. The cost principle relates most closely to the a. recognition point. b. recognition issue. c. valuation issue. d. classification issue. 2. Which of the following business events is not a transaction? a. Signing a contract b. Paying wages c. Receiving goods d. Purchasing a service 3. If Accounts Receivable has debit postings of $29,000, credit postings ...

Other / Other 29 Apr 2016