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Which of the following accounts has a normal credit balance 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. 3. Which pa ...

Other / Other 30 May 2016

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; Utiliti ...

Other / Other 30 May 2016

Which of the following is not a measurement issue in accounting 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 transactio ...

Other / Other 30 May 2016

The cost principle is a solution to the recognition issue 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 value. 5. F ...

Other / Other 30 May 2016

Entering transactions into the journal is called posting. 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 transactions in ...

Other / Other 30 May 2016

Which of the following accounts is decreased with a debit 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 Recei ...

Other / Other 30 May 2016

Which of the following terms does not mean the same as the others 1. Which of the following accounts will eventually be followed with an inflow of cash? a. Prepaid Insurance b. Unearned Revenue c. Owner's Withdrawals d. Accounts Receivable 2. Which of the following accounts will eventually be followed with an outflow of cash? a. Design Revenue b. Notes Receivable c. Accounts Payable d. Prepaid Rent 3. All of the fo ...

Other / Other 30 May 2016

The company paid half in cash and issued a promissory note 1. In the journal provided, prepare journal entries without explanations for the following transactions. Write “no entry” if none is needed. a. Received a $1,850 invoice for this month's rent. Payment will not be made right away. b. Paid $1,600 for insurance premiums to cover the next six months. c. The owner, Pat Richards, withdrew $350. d. The rent of a is pai ...

Other / Other 30 May 2016

Explain how the above journal entry relates to the measurement issues 1. Use this journal entry to answer the following question. Nov. 16 Accounts Payable 685 Cash 685 Recorded payment of a liability Explain how the above journal entry relates to the measurement issues of (a) recognition, (b) valuation, and (c) classification. 2. For each item below, indicate whether a debit or a credit applies. a. Decrease in Accou ...

Other / Other 30 May 2016

A purchase of supplies of $780 was recorded as a debit to Equipment 1. Indicate whether each account below has a normal debit or a normal credit balance. a. Cash g. Interest Receivable b. Wages Payable h. Store Equipment c. Wages Expense i. Legal Fees Earned d. Unearned Fees j. Owner's Capital e. Prepaid Insurance k. Depreciation Expense, Buildings f. Notes Payable 2. By what amount, if any, would each of the following errors ...

Other / Other 30 May 2016