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
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
A chart of accounts is a detailed record of the changes in a particular asset, liability, or equity account during a specified period. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Which of the following is provided in a typical chart of accounts? A) Account balance B) Account number C) Dates of transactions D) Transaction amounts ANSWER B
Date: September 2nd, 2020
