An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry. A) balanced B) posted C) chart of accounts D) compound journal ANSWER D
Date: September 2nd, 2020
In a periodic inventory system, the Cost of Goods Sold account is continuously updated as and when sales occur. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Even in a perpetual inventory system that updates the inventory account as and when transactions occur, the business must count its inventory at least once in a year. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Pluto, Inc. sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue. At the end of each month, the company makes an adjusting entry to account for the tickets used during the month (ticket revenue ) On March 1, the Unearned Revenue account had a credit balance of $5,000. During […]
Date: September 2nd, 2020
The advance cash receipts of future revenues are called ________. A) accrued revenues B) deferred expenses C) deferred revenues D) accrued expenses ANSWER C
Date: September 2nd, 2020
Merchandise inventory accounting systems can be broadly categorized into two types. They are ________. A) FIFO and LIFO B) perpetual and periodic C) wholesale and retail D) manufacturer and producer ANSWER B
Date: September 2nd, 2020
A business purchases equipment by paying $9,087 in cash and issuing a note payable of $13,264. Which of the following occurs? A) Cash is credited for $9,087, Equipment is credited for $22,351, and Notes Payable is debited for $13,264. B) Cash is credited for $9,087, Equipment is debited for $22,351, and Notes Payable is credited […]
Date: September 2nd, 2020
A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded? A) Cash is credited and Notes Payable is debited for $1,400. B) Notes Payable is credited and Cash is debited for $1,400. C) Cash is credited and Financing Expense is debited for $1,400. D) Cash […]
Date: September 2nd, 2020
The perpetual inventory system keeps a running record of inventory and cost of goods sold. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
An income statement includes ________. A) Land and Salaries Payable B) Common Stock, Retained Earnings, and Dividends C) Furniture and Cash D) Service Revenue and Utilities Expense ANSWER D
Date: September 2nd, 2020
