A trial balance summarizes the ledger by listing all the accounts with their balances at a point in time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A company purchased inventory for $100,000 on account and recorded it as follows: Merchandise Inventory 100,000 Accounts Payable 100,000 The vendor’s invoice showed terms of 3/10, net 30 Give the journal entry for the payment of the invoice seven days after the invoice date, assuming that the vendor uses the perpetual inventory system. What will […]
Date: September 2nd, 2020
The trial balance reports the balances of assets, liabilities, and equity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The goal of reporting realistic figures and never overstating assets or net income applies to the ________. A) conservatism principle B) materiality concept C) disclosure principle D) consistency principle ANSWER A
Date: September 2nd, 2020
The expected value of a depreciable asset at the end of its useful life is called ________. A) book value B) residual value C) accrued revenue D) accrued expense ANSWER B
Date: September 2nd, 2020
The trial balance is an internal document used only by employees of the company. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A depreciable asset’s cost minus accumulated depreciation is called ________. A) book value B) residual value C) accrued revenue D) accrued expense ANSWER A
Date: September 2nd, 2020
Which of the following principles states that a business’s financial statements must report enough information for outsiders to make knowledgeable decisions about the company? A) conservatism B) materiality concept C) disclosure principle D) consistency principle ANSWER C
Date: September 2nd, 2020
The Salaries Payable account is a permanent account. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Under the perpetual inventory system, discounts taken on an invoice by the buyer would be ________. A) debited to Merchandise Inventory B) credited to Merchandise Inventory C) debited to Cost of Goods Sold D) credited to Cost of Goods Sold ANSWER B
Date: September 2nd, 2020
