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
Luminous Electrical, Inc. performed services of $8,000 on January 24 and invoiced the customer. Luminous received the $8,000 on January 31. Provide the journal entry on January 24 when services were performed. (Ignore explanation.) What will be an ideal response ANSWER Accounts Receivable 8,000 Service Revenue 8,000
Date: September 2nd, 2020
Bright Lights Electrical, Inc. performed services of $8,000 on January 24 and invoiced the customer. Bright Lights received the $8,000 on January 31. Provide the journal entry on January 31 when the cash was received. (Ignore explanation.) What will be an ideal response ANSWER Cash 8,000 Accounts Receivable 8,000
Date: September 2nd, 2020
The accounting records of Marcus Service Company include the following selected, unadjusted balances at June 30: Accounts Receivable, $2,700; Office Supplies, $1,800; Prepaid Rent, $3,600; Equipment, $15,000; Accumulated Depreciation – Equipment, $1,800 What will be an ideal response ANSWER Accounts Debit Credit a Accounts Receivable Service Revenue 1,400 1,400 b Unearned Revenue Service Revenue 800 […]
Date: September 2nd, 2020
The last two columns generally found on the right side of the worksheet are the income statement columns. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
In the case of deferred revenue, the cash is received first, and the revenue is earned later. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The worksheet helps accountants to ________. A) make the trial balance B) prepare the financial statements C) prepare the unadjusted trial balance D) maintain books of accounts without a journal ANSWER B
Date: September 2nd, 2020
Gross profit is calculated as the difference between net sales revenue and ________. A) purchases B) cost of goods sold C) cost of merchandise inventory D) selling and administrative expenses ANSWER B
Date: September 2nd, 2020
