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 […]
Melville Services has a weekly payroll of $50,000. December 31, 2016 falls on Thursday and Melville will pay its employees the following Monday (January 4, 2017 ) for the previous full week Assume that Melville has a five-day workweek and has an unadjusted balance in Salaries Expense of $845,000. Prepare the January 4, 2017 journal […]
Salaries Payable, Interest Payable, and Unearned Revenue are examples of ________. A) short-term investments B) fixed assets C) current liabilities D) long-term liabilities ANSWER C
The time period concept states that ________. A) financial statements can be prepared for specific periods B) all expenses should be recorded when they are incurred during the period C) companies should record revenue when it has been earned D) expenses incurred during a period should be matched against the revenues of the period ANSWER […]
All assets that will not be converted to cash or used up within the business’s operating cycle or one year, whichever is greater, are called ________. A) long-term assets B) fully depreciated assets C) current assets D) current liabilities ANSWER A
A compound journal entry has more than two accounts, but the total dollar value of the debits still must equal total dollar value of the credits. Indicate whether the statement is true or false ANSWER TRUE
Journalizing a transaction involves ________. A) calculating the balance in an account using journal entries B) posting the account balances in the chart of accounts C) preparing a summary of account balances D) recording the data only in the journal ANSWER D
When a business makes a cash payment, the Cash account is debited. Indicate whether the statement is true or false ANSWER FALSE
Posting a transaction means ________. A) calculating the balance in an account B) transferring data from the journal to the ledger C) preparing a summary of account balances D) finding the account number in the chart of accounts ANSWER B
The operating cycle is the time span required for a business to repay its long-term liabilities. Indicate whether the statement is true or false ANSWER FALSE
