In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the total increases are $5,400 and the total decreases are $2,100. This means that the ending balance of the account is a credit balance of $3,300. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
For Office Supplies, the category of account and its normal balance is ________. A) liabilities and a debit balance B) assets and a debit balance C) liabilities and a credit balance D) assets and a credit balance ANSWER B
Date: September 2nd, 2020
List and briefly discuss three accounting concepts and principles that apply to accrual basis accounting. What will be an ideal response ANSWER 1. Time period concept — A business’s activities can be sliced into small time segments and financial statements can be prepared for specific periods of time. 2. Revenue recognition principle — Revenue is […]
Date: September 2nd, 2020
The Brighton Dental Corporation prepays the rent on its dental office. On July 1, the corporation paid $18,000 for 6 months of rent How much Rent Expense should Brighton Dental Corporation record the three months ended September 30 under the accrual basis? Why? What will be an ideal response ANSWER Brighton Dental should report Rent […]
Date: September 2nd, 2020
For Expenses, the category of account and its normal balance is ________. A) equity and a credit balance B) assets and a debit balance C) assets and a credit balance D) equity and a debit balance ANSWER D
Date: September 2nd, 2020
The Salaries Payable account is a(n) ________. A) liability account with a normal debit balance B) asset account with a normal debit balance C) liability account with a normal credit balance D) asset account with a normal credit balance ANSWER C
Date: September 2nd, 2020
The accounting period used for the annual financial statements is called the fiscal year. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The goal of the time period concept is to compute an accurate net income or net loss. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
For Retained Earnings, the category of account and its normal balance is ________. A) equity and a credit balance B) assets and a debit balance C) equity and a debit balance D) assets and a credit balance ANSWER A
Date: September 2nd, 2020
For Revenues, the category of account and its normal balance is ________. A) equity and a credit balance B) assets and a debit balance C) assets and a credit balance D) equity and a debit balance ANSWER A
Date: September 2nd, 2020
