A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier. Which of the following accounts is debited? A) Cash B) Accounts Payable C) Supplies D) Accounts Receivable ANSWER B
Date: September 2nd, 2020
Argyle Designs, Inc. has entered into a contract to design 40 new dresses for a customer. It will collect a total of $40,000 after the design services are complete. Argyle started design work on June 1. As of June 30, it finished 8 of the 40 designs The company will make an adjusting entry at […]
Date: September 2nd, 2020
Notes Payable due within two years are classified as ________. A) current liabilities B) current assets C) long-term liabilities D) long-term assets ANSWER C
Date: September 2nd, 2020
Which of the following is a plant asset? A) Equipment B) Patents C) Trademark D) Accounts Receivable ANSWER A
Date: September 2nd, 2020
Saturn, Inc. signed a one-year $24,000 note payable at 8% interest on May 1, 2017. How much interest expense must be accrued on May 31, 2017? A) $1,920 B) $12,800 C) $160 D) $80 ANSWER C .
Date: September 2nd, 2020
A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later time. Which of the following is true at the time the invoice is issued? A) Equity will decrease. B) Total liabilities will increase. C) Total assets will decrease. D) Net income will […]
Date: September 2nd, 2020
After initially recording a transaction, the data is then transferred to the ________. A) chart of accounts B) ledger C) trial balance D) journal ANSWER B
Date: September 2nd, 2020
The accounting process of transferring a transaction from the journal to the ledger is called ________. A) journalizing B) posting C) compounding D) sourcing ANSWER B
Date: September 2nd, 2020
Magnolia Tree Service has a weekly payroll of $50,000. December 31, 2016 falls on Thursday and Magnolia will pay its employees the following Monday (January 4, 2017 ) for the previous full week Assume that Anthony has a five-day workweek and has an unadjusted balance in Salaries Expense of $845,000. Prepare the December 31, 2016 […]
Date: September 2nd, 2020
Jupiter, Inc. signed a one-year $44,000 note payable at 8% interest on May 1, 2016. If Jupiter, Inc. only adjusts its accounts once a year at year-end, how much interest expense was accrued on December 31, 2016? A) $1,173 B) $3,520 C) $2,347 D) $2,933 ANSWER C .Interest Expense from May to December,
Date: September 2nd, 2020
