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
When a business records an accrued utility liability, the Utilities Expense account is credited. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The financial statements are prepared from the ________. A) adjusted trial balance B) chart of accounts C) statement of retained earnings D) unadjusted trial balance ANSWER A
Date: September 2nd, 2020
A balance sheet prepared in the report form lists the assets on the left and the liabilities and stockholders’ equity on the right. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
An adjusting entry is completed ________. A) at the beginning of the accounting period B) at the end of the accounting period C) when the balance sheet is prepared D) when accounts need to be balanced in the ledger ANSWER B
Date: September 2nd, 2020
An adjusting entry that credits Salaries Payable is an example of a(n) ________. A) accrued expense B) deferred revenue C) accrued revenue D) deferred expense ANSWER A
Date: September 2nd, 2020
Assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business’s normal operating cycle if the cycle is longer than a year, are called ________ assets. A) intangible B) plant C) long-term D) current ANSWER D
Date: September 2nd, 2020
When a business records the earning of service revenue, the Service Revenue account is credited. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
