Cawford Company started the year with $60.000 i Come Stock account and acro Betained Earings of $44.000. During the year the medicame of $48.000 de and paid $20,000 of dividends. In addition the calm stock of S. salt, the amount of its retained euming at the end of the year would be A) $160,000 B) $72,000 C) $132,000 D) $100.000 In recording an accounting transaction in a double-entry system A) the number of debit accounts must equal the number of credit accounts. B) there must always be entries made on both sides of the accounting equation C) the amount of the debits must equal the amount of credits D) there must only be two accounts affected by any transaction. which of the following errors, each considered individually, would cause the trial balance to be out balance? A) A payment of S148 to a creditor was posted as a debit to Accounts Payable and a debt of $145 B) Cash of $530 received from a customer on account was posted as a debit of $350 to Cash and credit of $350 to Accounts Payable. A payment of S59 for supplies was posted as a debit of $95 to Supplies and a credit of $95 to Cash D) A transaction was not posted Otto's Tune-Up Shop follows the revenue recognition principle. Otto Services a car on August 31. The customer picks up the vehicle on September and mails the payment to Otto on September 5. Otto Teceives the check in the mail on September 6. When should Otto show that the revenue was recognized? A) August 31 B) August C) September 5 D) September 6 If a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements? A) Failure to make an adjustment does not affect the financial statements B) Expenses will be overstated and net income and stockholders' equity will be understated. C) Assets will be overstated and net income and stockholders' equity will be understated D) Assets will be overstated and net income and stockholders' equity will be overstated Which of the following account's balance will change between the adjusted trial balance and the post-closing trial balance? A) Common stock B) Prepaid rent C) Uncarned service revenue D) Retained earnings Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments? A) Monetary unit assumption B) Economic entity assumption C) Time period assumption D) Going concern assumption