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18) Transactions are rst recorded in a . A) chart of accounts; B) trial balance; C) journal; D) ledger 19) Ranger Pool Company contributed $40,000

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18) Transactions are rst recorded in a . A) chart of accounts; B) trial balance; C) journal; D) ledger 19) Ranger Pool Company contributed $40,000 of cash in exchange for capital. Which of the following accounts will be credited? A) Ranger, Withdrawals; B) Cash; C) Ranger, Capital; D) Accounts Payable 20) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services E) None of the above 21) The accounting period used for the annual nancial statements is called the scal year. A. True or B. False 22) Which of the following accounting elements does the matching principle help to match? A) revenues and liabilities; B) expenses and assets; C) expenses and revenues; D) expenses and liabilities; E) None of the above 23) An adjusting entry is completed; A) at the beginning of the accounting period B) at the end of the accounting period; C) after all performance obligations are satised D) when accounts need to be balanced in the ledger; E) None of the above 24) On January 1, 2018, the Prepaid Insurance account of Dogwood Company had a beginning balance of $1,500. Three months of insurance premiums remain in this beginning balance. On February 21, 2018, the company paid an annual insurance premium in the amount of $3,400 for the period beginning March 1. On February 28, 2018, the balance in Prepaid Insurance is $1,000. A. True or B. False 25) On January 1, Nash Company had $1,000 of supplies on hand. During January, Nash purchased $5,500 worth of new supplies. At the end of the month, a count revealed $700 worth of supplies remaining on the shelves. The adjusting entry needed will include a debit to Supplies Expense of $5,800. A. True or B. False

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