If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) when services are performed and cash is received D) when cash […]
Date: September 2nd, 2020
An account that normally has a debit balance may occasionally have a credit balance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The balances in the liability and revenue accounts are increased with a credit. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following accounts decreases with a credit? A) Cash B) Common Stock C) Accounts Payable D) Notes Payable ANSWER A
Date: September 2nd, 2020
Under cash basis accounting, revenue is recorded when it is earned, regardless of when cash is received. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The major difference between a cash basis accounting system and an accrual basis accounting system is the timing of recording revenues and assets. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The system of accounting in which every transaction affects at least two accounts is called the double-entry system. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
In cash basis accounting, revenue is recorded when cash is received, and expenses are recorded when they are paid. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Debit refers to the right side of the T-account, and credit refers to the left side. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Recipes, Inc. purchased $2,000 of supplies on account. Under the accrual basis of accounting, no entry is made until the amount is paid. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
