Recent Question

A trial balance is normally prepared at the end of the day. True or false: 1. In a trial balance, all debits are listed before all credits. 2. A trial balance is normally prepared at the end of the day. 3. When the columns of the trial balance equal each other, it means that no errors have occurred in recording and posting the transactions. 4. A transposition error will cause the trial balance to be out of balance by an ...

Other / Other 30 May 2016

Which of the following accounts is decreased with a credit 1. Which of the following accounts is decreased with a credit ? a. Advertising Fees Earned b. Insurance Expense c. Owner's Capital d. Unearned Revenue 2. When collection is made on Accounts Receivable, a. owner's equity increases. b. total assets decrease. c. total assets remain the same. d. total assets increase. 3. If office equipment is sold at cost in exc ...

Other / Other 30 May 2016

Why is the Owner's Withdrawals account increased by a debit 1. Discuss the difference between business events that are transactions and those that are not. Why is the distinction important? 2. Why is the Owner's Withdrawals account increased by a debit ? Explain in terms of its relationship to owner's equity. 3. Indicate whether each account below has a normal debit or a normal credit balance. a. Automobiles g. Owner's Withdrawals b. ...

Other / Other 30 May 2016

Which of the following accounts is classified differently from the others listed 1. The Unearned Fees account is classified as a(n) a. liability. b. revenue. c. asset. d. expense. 2. Which of the following accounts is an asset? a. Jack Rossi, Capital b. Notes Payable c. Prepaid Rent d. Supplies Expense 3. Unearned revenues are recorded by companies that a. receive money in advance of the performance of a service. ...

Other / Other 30 May 2016

Which of the following statements is true about a journal entry 1. Which of the following statements is true about a journal entry ? a. Decreases in liabilities are indented. b. The Post. Ref. column is left blank until entries are posted. c. A line is skipped between each debit and each credit. d. Assets are entered before liabilities. 2. Which of the following statements is not necessarily true about a journal entry? a. Liabi ...

Other / Other 30 May 2016

Which of the following accounts is increased with a debit 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 of ...

Other / Other 30 May 2016

Another name for the ledger is the book of original entry. 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 chart of ...

Other / Other 30 May 2016

The primary purpose of the trial balance is to test the 1. Here is the trial balance for McLeary Company: McLeary Company Trial Balance January 31, 2010 Cash $ 3,000 Accounts Receivable 2,000 Art Supplies 3,000 Office Supplies 5,000 Prepaid Rent 7,000 Prepaid Insurance 5,000 Art Equipment 5,000 Office Equipment 3,000 Accounts Payable $5,000 Art McLeary, Capital 15,000 Art McLeary, Withdrawals ? Advertising Fee ...

Other / Other 30 May 2016

the two accounts and on the trial balance column totals 1. If a debit to Supplies were posted as a credit, and a credit of the same amount to Cash were posted as a debit, what would be the effect, if any, on the two accounts and on the trial balance column totals? 2. Record the following transactions, using proper form, in the journal provided. Mar. 2 Provided services in the amount of $2,000, receiving $600 in partial payment. 12 Re ...

Other / Other 30 May 2016

Which of the following does not affect Owner's Capital 1. All of the following are examples of source documents except a. checks. b. invoices. c. journals. d. receipts. 2. Which of the following transactions increases both assets and owner's equity? a. Receipt of payment from a credit customer b. Receipt of a bank loan c. Rendering of a service, payment not yet received d. Withdrawal of cash by the owner 3. Which of th ...

Other / Other 30 May 2016