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
Which of the following is a liability account? A) Accounts Receivable B) Cash C) Building D) Notes Payable ANSWER D
Date: September 2nd, 2020
A liability created when a business collects cash from customers in advance of providing services or delivering goods is called a(n) ________. A) notes receivable B) unearned revenue C) accrued liability D) service revenue ANSWER B
Date: September 2nd, 2020
Provide an explanation for each of the follow liability accounts. Account Name Explanation Accounts Payable Accrued Liability Unearned Revenue What will be an ideal response ANSWER Account Name Explanation Accounts Payable A promise made by the business to pay a debt in the future. Arises from a credit purchase. Accrued Liability An amount owed but […]
Date: September 2nd, 2020
The stockholders’ claim to the assets of a business is called equity or stockholders’ equity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Revenues and contributions of the stockholders in the business increase equity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Nuptial, Inc. paid the rent for the current month in cash. Which of the following accounts will be used to record the transaction? A) Prepaid Rent B) Rent Payable C) Rent Revenue D) Rent Expense ANSWER D
Date: September 2nd, 2020
Amounts earned from delivering goods or services to customers are called ________. A) notes receivable B) unearned revenues C) equity D) revenues ANSWER D
Date: September 2nd, 2020
Common Stock is a separate account in the ________ category of the accounting equation. A) equity B) asset C) liability D) revenue ANSWER A
Date: September 2nd, 2020
