In the worksheet, the adjusted balance of the Service Revenue account appears in the credit column of the income statement. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following statements is true of the worksheet? A) Net income is recorded in the income statement credit column. B) Net income is recorded in the adjusted trial balance debit column. C) Net income is recorded in the income statement debit column. D) Net income is recorded in the balance sheet debit column. […]
Date: September 2nd, 2020
List the three steps, in order of occurrence, of the operating cycle of a merchandising business. What will be an ideal response ANSWER 1. The operating cycle begins when the company purchases inventory from an individual or business, called a vendor. 2. The company then sells the inventory to a customer. 3. Finally, the company […]
Date: September 2nd, 2020
Healthy Living, a diet magazine, collected $240,000 in subscription revenue on May 31. Each subscriber will receive an issue of the magazine in each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting What is the amount of Subscription Revenue that has been earned by the […]
Date: September 2nd, 2020
Get in Shape, a healthy living magazine, collected $528,000 in subscription revenue on May 31. Each subscriber will receive an issue of the magazine in each of the next 12 months, beginning with the June issue The company uses the accrual method of accounting. What is the balance in the Unearned Revenue account as of […]
Date: September 2nd, 2020
A business repays the amount borrowed on a note with cash. Which of the following accounts is credited? A) Accounts Payable B) Cash C) Notes Payable D) Notes Receivable ANSWER B
Date: September 2nd, 2020
The Interest Expense in the worksheet’s unadjusted trial balance column is $3,500. Interest Expense in the income statement column is $9,000. Which of the following entries would have caused this difference? A) a $9,000 credit to Interest Expense in the worksheet’s adjustments column B) a $9,000 credit to Interest Payable in the worksheet’s adjustments column […]
Date: September 2nd, 2020
The liability created when a business collects cash from its customers before completing a service or delivering a product is called ________. A) accrued revenue B) accrued expense C) deferred revenue D) deferred expense ANSWER C
Date: September 2nd, 2020
Net income (loss) is the difference between the total debits and the total credits in the income statement columns of the worksheet. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Unearned revenue is recorded when ________. A) revenue will be both collected and earned in the future B) the business has collected cash, but not yet earned the revenue C) revenue has been collected and earned during the same accounting period D) the business has earned, but not collected, cash for the revenue ANSWER B
Date: September 2nd, 2020
