ACC101

QN= 45 If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have: a. Increased $22,000. b. Decreased $22,000. c. Increased $89,000. d. Decreased $156,000. e. Increased $156,000.

A

QN=109 Provide descriptions for this transaction: Debit inventory $8,000 and credit cash $,8000 a. Buying inventory by cash $8,000 b. Buying inventory on credit $8,000 c. Arrange inventory contract on credit $8,000 d. Arrange inventory contract by cash $8,000 e. None of these

A

QN=111 Provide descriptions for this transaction: Debit Cash $8,000 and credit Unearned revenue $,8000 a. Received payment in advance from customers by cash $8,000 b. Paid in advance for supplies by cash $8,000 c. Adjusting expense at the end of period $8,000 d. Adjusting unearned revenue at the end of period $8,000 e. None of these

A

QN=113 Borrow $ 1,000 loan to pay for new equipment of the company is recorded with: a. Debit equipment and credit loan b. Credit equipment and debit loan c. Debit cash and credit loan d. Credit cash and debit loan e. None of these

A

QN=12 Provide descriptions for this transaction: Decrease cash $3500 and Decrease equity $3500 a. Withdraw cash from the business by owner or paid cash for an expense b. Withdraw cash from the business by owner c. paid cash for an expense d. Collected cash from customers e. None of these

A

QN=126 Selling products for cash $300 and $700 on credit. Show the general journal entry to record sale revenue of this transaction. a. Debit Cash $ 300 Debit Account Receivable $700 Credit Revenue $1,000 b. Debit Cash $300 Debit Account Payable $700 Credit Revenue $1,000 c. Debit Account Receivable $700 Credit Unearned Revenue $700 d. Debit Unearned Revenue $700 Credit Account Receivable $700 e. Debit Cash $ 700 Credit Revenue $700

A

QN=131 Cooley company has the balance in the accounts payable at the beginning of March was $1,000. During the month of March, Cooley company purchased from Dell company on account totaling $2,000. Also during this month, Cooley company paid $500 on its accounts payable for Dell company. In addition, Cooley company was paid $8,000 by a customer for services to be provided in the future. What is the balance in accounts payable at the end of March? a. $2,500. b. $10,500. c. $8,000 d. $12,500 e. $2,000

A

QN=15 Resources owned or controlled by a company that are expected to yield future benefits are: a. Assets. b. Revenues. c. Liabilities. d. Owner's Equity. e. Expenses.

A

QN=18 A chart of accounts generally starts with which of the following types of accounts? a. Asset accounts b. Liability accounts c. Expense accounts d. Equity accounts e. Revenue accounts

A

QN=24 Which of the following is a liability? a. Note payable b. Note receivable c. Cash d. Inventory e. Expense

A

QN=27 Which of the following is not a category or element of the balance sheet? a. Expense b. Liabilities c. Assets d. Account payable e. Loan

A

QN=29 Reflects assumption that the business will continue operating instead of being closed or sold. It is about: a. Going-Concern Assumption b. Business Entity Assumption c. Time Period Assumption d. Revenue Recognition Principle e. Cost Principle

A

QN=3 Liability created by purchasing goods and services on credit are: a. Accounts payable. b. Accounts receivable. c. Liabilities. d. Expenses. e. Equity.

A

QN=43 Accounts receivable refers: a. A promise from customer for service or product the company provided on credit b. A prepayment of future expense c. A prepayment of customer for service to be provided in future d. Money which is owed to a provider by the company e. Investment by owner

A

QN=46 If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets? a. Assets would have increased $55,000. b. Assets would have decreased $55,000. c. Assets would have increased $19,000. d. Assets would have decreased $19,000. e. None of these.

A

QN=49 Distributions by a business to its owners are called: a. Withdrawals. b. Expenses. c. Assets. d. Retained earnings. e. Net Income.

A

QN=7 The balance in the prepaid insurance account before adjustment at the end of the year is $4,800, which represents the insurance premiums for four months. The premiums were paid on November 1. The adjusting entry required on December 31 is: a. Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400. b. Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400. c. Debit Insurance Expense, $1,200; credit Prepaid Insurance, $1,200. d. Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200 e. Debit Cash, $4,800; Credit Prepaid Insurance, $4,800.

A

QN=9 Provide descriptions for this transaction: Increase cash $1,000 and Increase equity $,1000 a. Investment of cash in business by owner or performed services for cash b. Investment of cash in business by owner c. Performed services for cash d. Collected cash from customers e. None of these

A

QN= 47 The following transactions occurred during July: 1. Received $900 cash for services provided to a customer during July. 2. Received $2,200 cash investment from Barbara Hanson, the owner of the business. 3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June. 4. Provided services to a customer on credit, $375. 5. Borrowed $6,000 from the bank by signing a promissory note. 6. Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July? a. $ 900. b. $ 1,275. c. $ 2,525. d. $ 3,275. e. $11,100.

B

QN=1 If assets are $199,000 and liabilities are $132,000, then equity equals a. $32,000. b. $67,000. c. $99,000. d. $131,000. e. $198,000.

B

QN=10 Provide descriptions for this transaction: Increase cash $4,000 and Increase CONTRIBUTED CAPITAL $4000 a. Investment of cash in business by owner or performed services for cash b. Investment of cash in business by owner c. Performed services for cash d. Collected cash from customers e. None of these

B

QN=101 Provide descriptions for this transaction: Debit cash $ 5,000 and Credit Account Receivable $5,000 a. Buying on credit. b. Received cash for an account receivable. c. Buying for cash. d. Selling for cash. e. Selling on credit.

B

QN=104 Which account is noncurrent or long-term asset a. Equipment, supplies, vehicle b. Equipment, building, vehicle c. Equipment, prepaid expense, vehicle d. Equipment, account receivable, vehicle e. None of these

B

QN=107 Under the accrual basis of accounting, revenues are reported in the accounting period when the a. Cash is received b. Service or goods have been delivered c. Contracts have been signed d. Trading negotiation has been done e. None of these

B

QN=108 Provide descriptions for this transaction: Debit inventory $8,000 and credit Account payable $,8000 a. Buying inventory by cash $8,000 b. Buying inventory on credit $8,000 c. Arrange inventory contract on credit $8,000 d. Arrange inventory contract by cash $8,000 e. None of these

B

QN=11 Provide descriptions for this transaction: Debit office supplies $8,000 and credit liability $,8000 a. Buying office supplies by cash $8,000 b. Buying office supplies on credit $8,000 c. Arrange office supplies contract on credit $8,000 d. Arrange office supplies contract by cash $8,000 e. None of these

B

QN=110 Provide descriptions for this transaction: Debit insurance expense $8,000 and credit Insurance - prepaid expense $,8000 a. Paid insurance fee by cash $8,000 b. Adjusting prepaid expense at the end of period $8,000 c. Arrange insurance contract on credit $8,000 d. Arrange inventory contract by cash $8,000 e. None of these

B

QN=112 The company buys a new car for personal use of the owner is recorded with below entry: a. Debit cash and credit withdrawal b. Credit cash and debit withdrawal c. Credit account payable and debit withdrawal d. Credit cash and debit expense e. None of these

B

QN=114 The company buys a new building for operation is recorded with below entry: a. Debit cash and credit withdrawal b. Credit cash and debit equipment c. Credit account payable and debit withdrawal d. Credit cash and debit expense e. None of these

B

QN=122 Invested $10,000 cash, and $15,000 of computer equipment. Prepare journal entries to record the above transactions a. Debit Cash $ 25,000 Credit Capital $25,000 b. Debit Cash $ 10,000 Debit Equipment $ 15,000 Credit Capital $25,000 c. Credit Cash $ 10,000 Credit Equipment $ 15,000 Debit Capital $25,000 d. Credit Cash $ 25,000 Debit Capital $25,000 e. Debit Cash $ 10,000 Credit Capital $10,000

B

QN=13 Items used in business operations, such as office pens and paper are several samples of: a. Office expense b. Office supplies c. Office equipment d. Prepayment e. None of these

B

QN=130 At the beginning of January of the current year, a Law company has a normal balance of $50,000 for accounts receivable. During January, the company collected $14,000 from customers and provided additional services to customers on account totaling $12,000. Additional, company used service of $ 1,000 on credit. At the end of January, the balance in the accounts receivable account should be: a. $49,000. b. $48,000. c. $36,000 d. $26,000 e. $76,000

B

QN=132 On June 30, 2009, Apricot Co. paid $7,500 cash for a service that will be performed during two-year period. On June 30, 2009 Apricot should record: a. A credit to an expense for $7,500 and debit cash $ 7,500 b. A debit to a prepaid expense for $7,500 and credit cash $ 7,500 c. A debit to a prepaid expense for $7,500 and credit account payable $ 7,500 d. A credit to a prepaid expense for $7,500 and debit cash $ 7,500 e. A debit to expense for $7,500 and credit cash $ 7,500

B

QN=134 Which of the following errors would result in the trial balance still balancing? a. The journal entry was posted by debiting salaries expense and debiting cash b. Posted $500 to each account instead of $5000 c. The salaries expense was posted as $500, but the cash was posted as $5000 d. All of these errors can result in the balance of the trial balance e. None of these

B

QN=136 Unearned revenue is reported in the financial statements as: a. Revenue on the balance sheet. b. A liability on the balance sheet. c. Unearned revenue on the income statement. d. An asset on the balance sheet. e. An operating activity on the statement of cash flows.

B

QN=137 On April 30, 2009, a three-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31, 2009? a. $500. b. $4,000. c. $6,000. d. $14,000. e. $18,000.

B

QN=142 Failure to make adjusting entries for prepaid expense will result in a. Overstatement of expenses b. Understatement of expenses c. Understatement of assets d. Overstatement of Liabilities e. Understatement of Liabilities

B

QN=17 Internal users of accounting information include: a. Shareholders. b. Managers. c. Lenders. d. Suppliers. e. Customers.

B

QN=19 Which of the following is a liability? a. Account receivable b. Account payable c. Owner?s capital d. Owner?s withdrawal e. None of these

B

QN=2 A cash outflow from the company into its owner is called a(n): a. Liability. b. Withdrawal. c. Expense. d. Profit. e. Investment.

B

QN=21 Assets created by selling goods and services on credit are: a. Accounts payable. b. Accounts receivable. c. Liabilities. d. Expenses e. Equity.

B

QN=22 A payment to an owner for personal use is called a(n): a. Liability. b. Withdrawal. c. Expense. d. Contribution. e. Investment.

B

QN=28 The account used to record the transfers of assets from a business to its owner is: a. A revenue account. b. The owner's withdrawals account. c. The owner's capital account. d. An expense account. e. A liability account.

B

QN=31 Which is the assumption stating that A business is accounted for separately from other business entities, including its owner? a. Going-Concern Assumption b. Business Entity Assumption c. Time Period Assumption d. Matching Principle e. Cost Principle

B

QN=4 Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? a. Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase. b. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect. c. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect. d. Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase. e. Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.

B

QN=40 The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the: a. Income statement equation. b. Accounting equation. c. Business equation. d. Net income. e. Trial balance.

B

QN=8 A company might buy a service or product on credit. "On credit" implies that the cash payment will occur: a. On buying day b. on a later date c. on previous day d. No due date e. No obligation to pay

B

QN=119 Of the following account types, which would be increased by a debit? a. Liabilities and expenses. b. Assets and equity. c. Assets and expenses. d. Equity and revenues. e. None of these

C

QN=120 The proper journal entry to record Ransom Company's billing of clients for $500 of services rendered is: a. Dr. Cash 500 Cr. Accounts Receivable 500 b. Dr. Accounts Receivable 500 Cr. capital Stock 500 c. Dr. Accounts Receivable 500 Cr. Service Revenue 500 d. Dr. Cash 500 Cr. Service Revenue 500 e. None of these

C

QN=127 The account used to record the investment of owner into the business is: a. A revenue account. b. The owner's withdrawals account. c. The owner's contributed capital account. d. An expense account. e. A liability account.

C

QN=133 A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 of office supplies. On December 31, $75 of office supplies remained. How much should the company report as office supplies expense for the year? a. $75. b. $125. c. $175. d. $250. e. $325.

C

QN=139 Which accounts used to record amounts owed to suppliers for products or services purchased on credit? a. Unearned revenue b. Trade account receivable c. Trade accounts payable d. Revenue e. Prepayment

C

QN=14 The difference between a company's assets and its liabilities, or net assets is: a. Net income. b. Expense. c. Equity. d. Revenue. e. Net loss.

C

QN=140 On May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010. The Cash receipt was recorded as unearned fees and at December 31, 2009, $1,000 of the fees had been earned. The adjusting entry on December 31 Year 1 should include: a. A debit to Unearned Fees for $500. b. A credit to Unearned Fees for $500. c. A credit to Earned Fees for $1,000. d. A debit to Earned Fees for $1,000. e. A debit to Earned Fees for $500.

C

QN=20 If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? a. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000. b. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. c. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. d. There would be no effect on the accounts because the accounts are affected by the same amount. e. None of these.

C

QN=23 The properties used in operation activities of a business is called: a. Revenue b. Withdrawal c. Assets d. Expense e. Liabilities

C

QN=25 Which of the following is not considered as subcategory of owner?s Equity? a. Revenue b. Withdrawal c. Assets d. Expense e. Contributed capital

C

QN=38 Which of the following accounting principles would require that all goods and services purchased should be recorded at cost? a. Going-concern principle. b. Continuing-concern principle. c. Cost principle. d. Business entity principle. e. Consideration principle.

C

QN=41 Another name for equity is: a. Net income. b. Expenses. c. Net asset. d. Revenue. e. Net loss.

C

QN=99 Provide descriptions for this transaction: Debit supplies $1,000 and Credit Account Payable $1,000 a. Used supplies. b. Purchased supplies. c. Purchased supplies on credit. d. Counted supplies. e. Transfer supplies into inventory.

C

QN=103 Provide descriptions for this transaction: Credit cash and debit owner equity a. Investing by owner in cash b. Paid expense of business c. Withdrawal of cash from business by owner for personal use d. Withdrawal of cash from business by owner for personal use or paid expense of business e. None of these

D

QN=105 Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a: a. Debit to Accounts Payable. b. Debit to Accounts Receivable. c. Credit to Cash. d. Credit to Accounts Payable. e. Credit to Wisconsin Rentals, Capital.

D

QN=106 A record of financial transactions in order by date and often defined as the book of original entry. This statement is about: a. None of these b. A Ledger c. A Source document d. A General journal e. An Income statement

D

QN=121 The trial balance: a. Is a formal financial statement. b. Is used to prove that there are no errors in the journal or ledger. c. Provides a listing of every account in the chart of accounts. d. Provides a listing of the balance of each ledger account. e. None of these

D

QN=125 Textron Stores purchased a van that cost $35,000. The firm made a payment of $5,000 cash and the balance on credit. Show the general journal entry to record this transaction. a. Debit Cash $5,000 Debit Account payable $30,000 Credit Van $35,000 b. Debit Cash $5,000 Credit Account payable $30,000 Credit van $ 35,000 c. Debit Van $ 5,000 Credit Cash $5,000 d. Debit Van $35,000 Credit Cash $5,000 Credit Account payable $30,000 e. Debit Van $30,000 Credit Account payable $30,000

D

QN=128 If Jones, the owner of Hardware company, uses cash of the business to purchase a family car, the business should record this use of cash with an entry to: a. Debit Expense and credit Cash. b. Credit Expense and Debit Cash. c. Debit Cash and credit Withdrawals. d. Debit Withdrawals and credit Cash. e. Debit car and credit Cash.

D

QN=135 On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: a. Debit Prepaid Insurance, $1,800; credit Cash, $1,800. b. Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440. c. Debit Prepaid Insurance, $360; credit Insurance Expense, $360. d. Debit Insurance Expense, $360; credit Prepaid Insurance, $360. e. Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.

D

QN=30 A company must record its expenses incurred to generate the revenue reported at the same period. It is about: a. Going-Concern Assumption b. Business Entity Assumption c. Time Period Assumption d. Matching Principle e. Cost Principle

D

QN=32 Which are expected to be sold, collected or used within one year or the company?s operating cycle? a. Non - Current assets b. Non ? Current liabilities c. Current liabilities d. Current assets e. None of these

D

QN=33 Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is: a. $223,000. b. $240,000. c. $268,000. d. $274,000. e. $208,000.

D

QN=35 Net Income: a. Decreases equity. b. Represents the amount of assets owners put into a business. c. Equals assets minus liabilities. d. Is the excess of revenues over expenses. e. Represents owners' claims against assets.

D

QN=36 Decreases in equity that represent costs of assets or services used to earn revenues are called: a. Liabilities. b. Equity. c. Withdrawals. d. Expenses. e. Owner's Investment.

D

QN=42 On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year? a. $8,300 b. $13,050 c. $20,500 d. $31,100 e. $40,400

D

QN=44 Money which a company owes to vendors for products and services purchased on credit. This item appears on the company's balance sheet as a current liability. a. Prepayment b. Account receivable c. Asset d. Account payable e. Cost of goods sold

D

QN=5 How does Lead Company record by the billing of a client for $15,000 of service completed? a. +$15,000 accounts receivable, -$15,000 accounts payable. b. +$15,000 accounts receivable, +$15,000 accounts payable. c. +$15,000 accounts receivable, +$15,000 cash. d. +$15,000 accounts receivable, +$15,000 revenue. e. +$15,000 accounts receivable, -$15,000 revenue.

D

QN=50 How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed? a. +$10,000 accounts receivable, -$10,000 accounts payable. b. +$10,000 accounts receivable, +$10,000 accounts payable. c. +$10,000 accounts receivable, +$10,000 cash. d. +$10,000 accounts receivable, +$10,000 revenue. e. +$10,000 accounts receivable, -$10,000 revenue.

D

QN=6 Moffat Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. What is the entry need to record when Moffat Company bill of a client for $25,000 of contract completed? a. +$25,000 accounts receivable, -$25,000 accounts payable. b. +$25,000 accounts receivable, +$25,000 accounts payable. c. +$25,000 accounts receivable, +$25,000 cash. d. +$25,000 accounts receivable, +$25,000 revenue. e. +$25,000 accounts receivable, -$25,000 revenue.

D

QN=98 A simple account form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a: a. Withdrawals account. b. Capital account. c. Drawing account. d. T-account. e. Balance column sheet.

D

QN=100 Provide descriptions for this transaction: Credit cash $ 2,000 and Debit Account Payable $ 2,000 a. Buying for cash. b. Selling for cash. c. Selling on credit. d. Buying on credit. e. Paid accounts payable.

E

QN=102 Provide descriptions for this transaction: Credit supplies $ 2,000 and Debit expense $ 2,000 a. None of these b. Selling supplies on credit worth of $2,000 c. Buying supplies for cash worth of $ 2,000 d. Buying supplies on credit worth of $ 2,000 e. Used supplies in business worth of $ 2,000

E

QN=124 On June 1, paid $200 cash for office supplies. Prepare journal entries to record the above transactions on June 1. a. Debit Cash $ 200 Credit office supplies $200 b. Debit office supplies expense $200 Credit Cash $ 200 c. Debit Cash $ 200 Credit office supplies expense $200 d. Debit equipment $200 Credit Cash $ 200 e. Debit office supplies $200 Credit Cash $ 200

E

QN=129 John set up a new business and completed these transactions: 1. Open new restaurant, by investing $30,000 cash and equipment valued at $10,000. 2. Purchased $1,000 of kitchen utility on credit. 3. Paid $1,500 cash for the staff?s salary. 4. Service meals to customers and collected$4,000 cash What was the balance of the cash account after these transactions were posted? a. $46,500 b. $42,500 c. $45,500 d. $31,500 e. $32,500

E

QN=138 PPW Co. leased a portion of its store to another company for eight months beginning on October 1, 2009, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which PPW Co. recorded as unearned revenue. The journal entry made by PPW Co. at year- end on December 31, 2009 would include: a. A debit to Rent Earned for $2,400. b. A credit to Unearned Rent for $2,400. c. A debit to Cash for $6,400. d. A credit to Cash for $2,400. e. A debit to Unearned Rent for $4,000.

E

QN=141 The difference between the cost of an asset and the accumulated depreciation for that asset is called a. Depreciation Expense. b. Unearned Depreciation. c. Prepaid Depreciation. d. Depreciation Value. e. Book Value.

E

QN=16 Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation? a. Assets increase by $75,000 and expenses increase by $75,000. b. Assets increase by $75,000 and expenses decrease by $75,000. c. Liabilities increase by $75,000 and expenses decrease by $75,000. d. Assets decrease by $75,000 and expenses decrease by $75,000. e. Assets increase by $75,000 and liabilities increase by $75,000.

E

QN=26 Which of the following is not a liability? a. Account payable b. Note payable c. Short term loan d. Long term loan e. Short term investment

E

QN=34 Which of the following statements is true about assets? a. They are economic resources owned or controlled by the business. b. They are expected to provide future benefits to the business. c. They appear on the balance sheet. d. Claims on them can be shared between creditors and owners. e. All of these.

E

QN=37 Accounting is an information and measurement system that: a. Identifies business activities. b. Records business activities. c. Communicates business activities. d. Helps people make better decisions. e. All of these.

E

QN=39 External users of accounting information include: a. Shareholders. b. Customers. c. Creditors. d. Government regulators. e. All of these.

E

QN=48 Creditors' claims on the assets of a company are called: a. Net losses. b. Expenses. c. Revenues. d. Equity. e. Liabilities.

E

QN=145 Which statement is true: a. Account payable is considered a liability on the balance sheet b. Account payable is considered a liability on the statement of owner equity c. Account payable is considered a liability on the income statement d. Account payable is considered a liability on the cash flow statement e. None of these

a

QN=115 On June 1, 2010, The company paid $1,000 cash for the loan owing the bank before. Recording this transaction. a. Debit cash and credit loan b. Credit cash and debit loan c. Debit account payable and credit loan d. Credit account payable and debit loan e. None of these

b

QN=143 A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period? a. $2,700. b. $2,900. c. $3,300. d. $3,500. e. $3,700.

b

QN=147 What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250? a. Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250. b. Debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500. c. Debit Prepaid Insurance, $4,500; credit Insurance Expense, $4,500. d. Debit Insurance Expense, $7,750; credit Prepaid Insurance, $7,750. e. Debit Cash, $7,750; Credit Prepaid Insurance, $7,750.

b

QN= 118 The business completed these transactions: 1. Investing $20,000 cash and a building valued at $100,000. 2. Purchased $10,000 of a truck on credit. 3. Paid $20,000 cash for raw material. 4. Selling products and collected$40,000 cash. What was the balance of the cash account after these transactions were posted? a. $130,000 b. $30,000 c. $40,000 d. $140,000 e. $120,000

c

QN=144 If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include: a. A debit to Cash and a credit to Salaries Payable. b. A debit to Cash and a credit to Prepaid Salaries. c. A debit to Salaries Payable and a credit to Cash. d. A debit to Salaries Payable and a credit to Salaries Expense. e. No entry would be necessary on January 5.

c

QN=116 If Smith, the owner of a restaurant, uses cash of the business to pay for renting his house, the business should record this use of cash with an entry to: a. Debit Expense and credit Cash. b. Credit Expense and Debit Cash. c. Debit Cash and credit Withdrawals. d. Debit Withdrawals and credit Cash. e. Debit Equipment - Car and credit Cash.

d

QN=123 Provide descriptions for this transaction: Debit unearned revenue $8,000 and credit revenue $,8000 a. Received payment in advance from customers $8,000 b. Paid in advance for supplies by cash $8,000 c. Adjusting expense at the end of period $8,000 d. Adjusting unearned revenue at the end of period $8,000 e. None of these

d

QN=146 The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is: a. Debit Unpaid Salaries and credit Salaries Payable. b. Debit Salaries Payable and credit Salaries Expense. c. Debit Salaries Expense and credit Cash. d. Debit Salaries Expense and credit Salaries Payable. e. Debit Cash and credit Salaries Expense.

d

QN=117 If Hussan, the owner of Hardware company, uses cash of the business to purchase a motorcycle for his travelling, the business should record this use of cash with an entry to: a. Debit Expense and credit Cash. b. Credit Expense and Debit Cash. c. Debit Cash and credit Withdrawals. d. Debit Motorcycle and credit Cash. e. Debit Withdrawals and credit Cash.

e