Question
Dividend, expense, and asset accounts are increased with debits; liability, contributed capital, and revenue accounts are increased with credits. true false Costs of items that
Dividend, expense, and asset accounts are increased with debits; liability, contributed capital, and revenue accounts are increased with credits.
true | ||
false |
Costs of items that will continue to provide benefit to the company after the current month is over are classified as assets, but costs that the company will have received the benefit from by the end of the month are classified as expenses.
true | ||
false |
Jacob Company performed $200 of services for a client this month. The client has not paid and will not even be billed for the services until next month. Which of the following adjusting entries should Jacob record at the end of the month?
there would be no entry | ||
debit Accounts Receivable $200; credit Cash $200 | ||
debit Cash $200; credit Service Revenue $200 | ||
debit Accounts Receivable $200; credit Service Revenue $200 |
Jones Company purchased $1,000 of supplies from an office supply store. Jones paid $200 cash at the time of purchase and charged the rest on a credit card. Jones' journal entry to record this transaction would be:
debit Supplies and credit Cash for $200 | ||
debit Supplies for $1,000, credit Cash for $200, and credit Accounts Payable for $800 | ||
debit Cash for $200, debit Accounts Payable for $800, and credit Supplies for $1,000 | ||
debit Supplies and credit Accounts Payable for $1,000 |
The entry our company would record upon receiving $900 from a customer in payment of their account would be:
debit Accounts Payable and credit Cash for $900. | ||
debit Accounts Receivable and credit Cash for $900. | ||
debit Cash and credit Accounts Receivable for $900. | ||
debit Cash and credit Accounts Payable for $900. |
When a company receives money to perform a service in the future, it would record:
a debit to unearned revenue and a credit to cash. | ||
a debit to revenue and a credit to cash. | ||
a debit to cash and a credit to revenue. | ||
a debit to cash and a credit to unearned revenue. |
If a company forgets to record a purchase of equipment made with a credit card (no journal entry is recorded), then the company's:
assets and liabilities will be understated. | ||
assets and liabilities will be overstated. | ||
revenues will be overstated. | ||
net income will be understated. |
Which of the following accounts would appear only on the Statement of Retained Earnings?
Interest Expense | ||
Dividends | ||
Service Revenue | ||
Accounts Payable |
The end of month retained earnings of a company is equal to the:
proceeds from stock plus accumulated net income | ||
prior period retained earnings plus current period net income minus current period dividends | ||
Contributed Capital plus Retained Earnings | ||
assets minus liabilities. |
Which of the following accounts would appear on a Balance Sheet?
Interest Expense | ||
Service Revenue | ||
Accounts Receivable | ||
Dividends |
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