Chapter 1-10 Acc
A company performed $17,270 of services and received $6.000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction on the company's current month-end accounting equation?
$17,270 increase in Assets; No effect on Liabilities; $17,270 increase in Stockholders' Equity
A ledger is
A financial statement that maintains all account transactions
If liabilities increases 75,000 and equity decreases 30,000 then assets are
A=L+E. 75,000-30,000=45,000
The closing process at the end of each accounting period
All of the above
Which of the following represents an aspect of the accounting environment that may create ethical issues.
All of the above.
The entry to write-off of Dominick, Inc A/R using the allowance method is
Allowance for doubtful accounts A/R
General Ledger Question
Big Big Small Small
Which of the following exists as a legal entity for tax purposes?
Corporation
Adjustment for office supplies problem.
Debitoffice suppose 254, credit prepaid office 254
Dividends account normally has a credit balance since it's an equity account
False
Major Function of managerial accounting is to provide general purpose financial statements for parties outside the organization.
False
Trial balance is the list of the general ledger with their respective debit and credit.
False
Company's ability to pay off short-term financial obligations
Liquidity
Expense recognition system (matching) principle states:
Net Income is determined by linking operation cash receipts with operation cash expenses
Retained Earnings
RE beg - NI - Div
Resources owned or controlled by a company that are expected to yield benefits are
Revenues
Company's ability to pay long term assets
Solvency
When should revenue be recognized?
The date the money is received
Net Income
Total Rev - Exp
The cost principle states that assets are initially recorded at the amounts paid to acquire the assets.
True
Unearned rev is a liability
True
Match the following tupes of accounts of a-d with each of the following transactions 1 through 4 a. Prepaid exense b. Unearned revenue c. Accrued expense d Accrued revenue
Used to record costs paid, but not incurred Used to record payment received in advance of providing a service or product. Used to record costs incurred, but not paid. Used to record revenue earned but not received.
A debit is on
the left side