Unearned Revenue is a(n) ________ account and carries a normal ________ balance. A) liability; credit B) asset; credit C) revenue; debit D) asset; debit ANSWER A
Date: September 2nd, 2020
On December 31, 2016, the balance in Pinnacle Exploration Company’s Unearned Revenue account was a credit of $6,000. In January, 2017, the company received an advance payment of $12,000 from a new customer for services to be performed By January 31, adjustments were made to recognize $7,000 of the revenue that had been earned during […]
Date: September 2nd, 2020
Which of the following is not recorded in a modern perpetual inventory system? A) units purchased and cost amount B) units sold and sales and cost amounts C) customer account numbers and balances owed from the sale of merchandise inventory D) the quantity of merchandise inventory on hand and its cost ANSWER C
Date: September 2nd, 2020
Which of the following accounts would appear in the income statement debit column? A) Unearned Revenue B) Service Revenue C) Depreciation Expense D) Prepaid Insurance ANSWER C
Date: September 2nd, 2020
The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts. Indicate whether the statement is true or false ANSWER FALSE .Revenues and expenses are not included.
Date: September 2nd, 2020
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
________ are the expenses that occur in an entity’s major line of business. A) Interest expense B) Interest revenue C) Operating expenses D) Loss on sale of plant asset ANSWER C
Date: September 2nd, 2020
A business makes a payment in cash for advertising expense. Which of the following accounts is credited? A) Notes Payable B) Accounts Receivable C) Cash D) Advertising Expense ANSWER C
Date: September 2nd, 2020
On January 1, Unearned Revenue of Grossman, Inc. had a beginning balance of $1,400. During January, the company earned $700 of the deferred revenue. The company also collected $6,000 from a new customer for services to be performed the following month At the end of January, the Unearned Revenue account should have a balance of […]
Date: September 2nd, 2020
