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
Which of the following statements is true of expenses? A) Expenses increase equity, so an expense account’s normal balance is a credit balance. B) Expenses decrease equity, so an expense account’s normal balance is a credit balance. C) Expenses increase equity, so an expense account’s normal balance is a debit balance. D) Expenses decrease equity, […]
Date: September 2nd, 2020
A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be recorded if the company uses accrual basis accounting? A) Cash 1,000 Accounts Receivable 1,000 B) Salaries Expense 1,000 Cash 1,000 C) Cash 1,000 Service Revenue 1,000 D) Supplies 1,000 Cash […]
Date: September 2nd, 2020
The cash basis of accounting ignores ________. A) payables B) revenue C) cash D) expenses ANSWER A
Date: September 2nd, 2020
The normal balance of an account is the increase side of the account. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which one of the following account groups normally has a credit balance? A) assets and liabilities B) equity and assets C) liabilities and revenues D) assets and expenses ANSWER C
Date: September 2nd, 2020
Which of the following statements is true of accrual basis accounting? A) Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP). B) Accrual basis accounting records expenses only when cash has been paid for them. C) Accrual basis accounting records revenue only when cash is received. D) Accrual basis accounting always results in […]
Date: September 2nd, 2020
Which one of the following account groups normally has a debit balance? A) assets and expenses B) revenues and expenses C) liabilities and revenues D) assets and liabilities ANSWER A
Date: September 2nd, 2020
Which of the following entries would be recorded by a company that uses the cash basis method of accounting? A) Cash 1,000 Accounts Receivable 1,000 B) Salaries Expense 1,000 Salaries Payable 1,000 C) Prepaid Rent 1,000 Cash 1,000 D) Rent Expense 1,000 Cash 1,000 ANSWER D
Date: September 2nd, 2020
