Accrued revenue represents the receipt of cash before the revenue has been earned. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Classic Artists’ Services signed a contract with a maintenance service company to maintain a building that Classic will use for office purposes. The contract states that the work will begin work on February 1 and end on May 31 Classic Artists’ will pay the maintenance service company $2,000 at the end of May. It accrues […]
Date: September 2nd, 2020
Which of the following sequences is the normal sequence of flow of accounting data? A) Ledger ↑ Journal ↑ Source document B) Journal ↑ Source document ↑ Ledger C) Source document ↑ Journal ↑ Ledger D) Source document ↑ Ledger ↑ Journal ANSWER C
Date: September 2nd, 2020
The financial statement that reports assets, liabilities, and stockholders’ equity as of the last day of the period is called the ________. A) income statement B) statement of retained earnings C) balance sheet D) unadjusted trial balance ANSWER C
Date: September 2nd, 2020
Which of the following is a current asset that is expected to be converted to cash, sold, or consumed during the next year (or the normal operating cycle, if longer)? A) Land B) Equipment C) Building D) Accounts Receivable ANSWER D
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
