The balances of select accounts of McCarthy, Inc as of December 31, 2016 are given below: Notes Payable—short-term $1,500 Salaries Payable 6,000 Notes Payable—long-term 25,000 Accounts Payable 3,100 Unearned Revenue 2,000 Interest Payable 2,200 The Unearned Revenue is the amount of cash received for services to be rendered in January 2017. Interest Payable will be […]
Liquidity is a measure of how ________. A) quickly an asset may be converted into cash B) long an asset can be used C) easily an asset can be exchanged for another asset D) short an operating cycle is ANSWER A
Allen Company is hired on December 15, 2016 to perform services, beginning on December 16, 2016. Under this agreement, Allen will earn $4,500 monthly and receive payment on January 15, 2017 What amount of service revenue should be recorded for the year ending December 31, 2016? A) 0 B) $2,250 C) $4,500 D) There is […]
Dalton Delivery Service is hired on October 31, 2016 to perform services, beginning on November 1, 2016. The delivery services will be performed for six months at a rate of $3,000 per month. Dalton’s fiscal year ends on December 31 What amount of service revenue should be recorded as an adjusting entry on December 31, […]
A business makes a cash payment to a supplier for office supplies that were purchased earlier on account. Which of the following accounts is debited? A) Cash B) Accounts Payable C) Office Supplies D) Utilities Expense ANSWER B
A business pays $500 cash for office supplies. Which of the following accounts is credited? A) Cash B) Accounts Payable C) Office Supplies D) Utilities Expense ANSWER A
The operating cycle of a merchandiser begins when the company purchases inventory from a vendor and ends when the company then sells the inventory to a customer. Indicate whether the statement is true or false ANSWER FALSE
The balances of select accounts of Stephanie, Inc. as of December 31, 2016 are given below Debit Credit Building $100,000 Cash 8,000 Office Supplies 800 Furniture 6,000 Prepaid Insurance 500 Accumulated Depreciation—Furniture $4,000 Land 33,000 Accumulated Depreciation—Building 4,700 Accounts Receivable 4,000 What amount of total long-term assets would be shown on the balance sheet? A) […]
On the income statement, a service company reports the cost of merchandise inventory that has been sold to customers. Indicate whether the statement is true or false ANSWER FALSE
The balances of select accounts of Janet, Inc as of December 31, 2016 are given below: Notes Payable—short-term $1,200 Salaries Payable 6,000 Notes Payable—long-term 22,000 Accounts Payable 3,200 Unearned Revenue 1,000 Interest Payable 2,200 The Unearned Revenue is the amount of cash received for services to be rendered in January, 2017. The Interest Payable is […]
