Financial accounting

Question 6 (1 point)

On July 01, 2021, ABS borrowed $80,000 from the bank while signing a note payable. The loan and interest are payable on July 01, 2022. On the date the contract was signed (July 01, 2021), the accountant properly recorded the transaction in the ABS journal. The term of the loan is 1 year and the annual interest rate is 4%. As of December 31, 2021, in ABS's accounting records, there are :

Options from question 6:

a)Debit "finance interest" for $1,600 and credit "finance interest payable" for $1,600

b)Debit "finance interest" for $3,200 and credit "finance interest payable" for $3,200

c)Debit "financial interest" for $3,200 and credit "cash" for $3,200

d)Debit "cash" for $80,000 and credit "notes payable" for $80,000

Question 7 (1 point)

Financial analysts look at the income statement to determine which of the following?

Options for Question 7:

a)Whether the company has generated profits from its operations

b)Whether the company has invested too much cash in its inventory

c)Whether the company generated enough cash to pay its bills

d)Whether the company is collecting its receivables on time.

Question 8 (1 point)

Of the following statements, how many are false:

The debit to the "expense" account represents an increase in that account

The debit to the "accrued expenses" account represents an increase in this account

The debit to the "deferred revenue" account represents an increase in this account

Debit to the "Cost of Sales" account represents an increase to this account

Options for Question 8:

a)1

b)2

c)4

d)3

Question 9 (1 point)

On March 01, 2023, Company H sold services on credit for $4,000. In the journal, you need to:

Options for Question 9:

a)Debit cash for $4,000 and credit sale of services for $4,000

b)Debit share capital for $4,000 and credit sale of services for $4,000

c)Debit customer for $4,000 and credit sale of services for $4,000

d)Debit customer for $4,000 and credit share capital for $4,000

Question 10 (1 point)

On December 01, 2023, Modle Store paid ABC Inc $6,000 for six months' rent. Modle recorded the transaction in the prepaid rent account. On 12/31/2023, the adjusting entry to be made by the Modle store is as follows:

Options from question 10:

a)Debit "rent" for $6,000 and credit "prepaid rent" for $6,000

b)Debit "prepaid rent" for $1,000 and credit "rent" for $1,000

c)Debit "rent prepaid" for $6,000 and credit "rent" for $6,000

d)Debit "rent" for $1,000 and credit "prepaid rent" for $1,000