Techno Technical Services is working on a six-month job for a client, starting on February 1. It will collect $24,000 from its customer when the job is finished but the revenue is earned evenly over the six months On March 31, before adjusting entries are made, Techno’s Accounts Receivable account had a debit balance of […]
Date: September 2nd, 2020
A business purchases $500 of office supplies on account. Which of the following accounts is credited? A) Cash B) Accounts Payable C) Office Supplies D) Service Revenue ANSWER B
Date: September 2nd, 2020
On the income statement, a merchandising company reports the cost of merchandise inventory that has been sold to customers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
An entity that buys goods and sells them to customers at a markup is a ________. A) merchandiser B) service provider C) manufacturer D) producer ANSWER A
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
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
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
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, […]
Date: September 2nd, 2020
The employees of Sinclair Services, Inc. worked the last two weeks of December. They received their paychecks on January 2. Which of the following accounts should appear on the balance sheet as of December 31? A) Accounts Payable B) Salaries Payable C) Salaries Expense D) Prepaid Expense ANSWER B
Date: September 2nd, 2020
Revenue that has been earned but not yet collected in cash is called a(n) ________. A) accrued revenue B) deferred expense C) deferred revenue D) accrued expense ANSWER A
Date: September 2nd, 2020
