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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. realizati ...

Other / Other 29 Apr 2016

The chart of accounts makes finding accounts in the ledger easier TRUE OR FALSE: 1.. Despite the advantages of a computer accounting information system, posting still must be done manually. 2. Journal entries are typically posted to the ledger only at the end of the year. 3. In a financial report, a double line is placed below the final total(s). 4. Another name for the ledger is the book of original entry. 5. The ...

Other / Other 29 Apr 2016

Land and buildings may be combined into one account 1. Unearned revenues are classified as liabilities on the balance sheet. 2. Another word for expense is debt. 3. The account Office Supplies is classified as an expense. 4. Land and buildings may be combined into one account. 5. Dollar signs are not used in journals and ledgers. Business Management Assignment Help, Business Management Homework help, ...

Other / Other 29 Apr 2016

Liabilities are Established with Debits and Eliminated with Credits TRUE OR FALSE: 1. Accounts Payable has a normal credit balance. 2. When the owner makes an investment, his or her Capital account is debited. 3. When a withdrawal is made, the Owner's Withdrawals account is debited and Cash is credited. 4. Liabilities are established with debits and eliminated with credits. 5. Generally, before Accounts Receivable ...

Other / Other 29 Apr 2016

A Debit has an Unfavorable Effect on an Account TRUE OR FALSE: 1. The classification issue involves the assignment of accounts to business transactions. 2. When a company receives an order, a transaction has occurred. 3. A credit to an asset account means that asset account has been increased. 4. A debit has an unfavorable effect on an account. 5. For a T account, an account balance is the difference in total doll ...

Other / Other 29 Apr 2016

The Owner's Capital account has a Normal debit Balance TRUE OR FALSE 1. An increase in revenue is recorded with a credit. 2. Owner's withdrawals should appear on the statement of owner's equity. 3. The Owner's Withdrawals account has a normal credit balance. 4. Expenses have a normal credit balance. 5. The Owner's Capital account has a normal debit balance. Business Management Assignment Help, Business ...

Other / Other 29 Apr 2016

Purchase requisitions are recognized in the accounting records TRUE OR FALSE: 1. When a company receives a product previously ordered, a recordable transaction has occurred. 2. When a business hires a new employee, a recordable transaction has occurred. 3. The valuation issue deals with how the components of a transaction should be categorized. 4. In accounting, to recognize means to record a transaction or event. ...

Other / Other 29 Apr 2016

The most generally accepted value used in accounting is market value TRUE OR FALSE: 1. When a company purchases goods that it will resell, it must record the goods in an expense account. 2. The cost principle is a solution to the recognition issue. 3. The recognition issue deals with when a user of financial statements should use accounting information. 4. The most generally accepted value used in accounting is market va ...

Other / Other 29 Apr 2016

A Basic Storage Unit for Accounting Data is The Account TRUE OR FALSE: 1. Generally, before Accounts Payable is debited, it is credited. 2. When payment is received for services not yet rendered, no entry is recorded until that service has been rendered. 3. When revenue has been earned, no entry is recorded until the related cash has been collected. 4. A contract is an example of a source document. 5. A basic ...

Other / Other 29 Apr 2016

Revenue should be recorded when it has been earned, not when the related cash has been collected TRUE OR FALSE: 1. The amount of profit would always be equal to the ending cash balance. 2. One can obtain a clear picture of a company's liquidity by referring to its income statement. 3. One can obtain a clear picture of a company's liquidity by referring to its statement of cash flows. 4. Revenue should be recorded wh ...

Other / Other 29 Apr 2016