1. An accountant has debited an expense account for $1,000 and credited a liability account for $500. Which of the following would be a correct
1. An accountant has debited an expense account for $1,000 and credited a liability account for $500. Which of the following would be a correct way to complete the recording of the transaction?
a. Debit an asset account for $500.
b. Credit another liability account for $500.
c. Debit an owner's equity account for $500.
d. Debit a revenue account for $500.
2. The matching principle matches
a. expenses with assets.
b. expenses with revenues.
c. assets with liabilities.
d. revenues with expenses.
3. Accounts often need to be adjusted because
a. there are never enough accounts to record all the transactions.
b. many transactions affect more than one time period.
c. there are always errors made in recording transactions.
d. management can't decide what they want to report.
4. The most important information needed to determine if companies can pay their current obligations is the
a. net income for this year.
b. projected net income for next year.
c. relationship between current assets and current liabilities.
d. relationship between short-term and long-term liabilities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started