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 .
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 […]
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
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
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 […]
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,
Patents, copyrights, and trademarks are examples of ________. A) short-term investments B) fixed assets C) long-term investments D) intangible assets ANSWER D
The first step in the journalizing and posting process is to ________. A) post the journal entry to the ledger B) identify the accounts involved and the account type C) decide whether each account increases or decreases D) record the transaction in the journal ANSWER B
A business hired a repair service to overhaul its plumbing system. The repair service began work on September 15 and completed it on October 15. The business agreed to pay the service $4,000 when the work was completed As of September 30, the work was 50% complete, and the business made an adjusting entry to […]
Which of the following is the order of steps to journalize an entry? A) Identify the accounts and the account type ↑ Decide whether each account increases or decreases, then apply the rules of debits and credits ↑ Record the transaction B) Identify the accounts and the account type ↑ Record the transaction ↑ Decide […]