On January 8th, the Blue Company made a sale for $800 and the customer gave $100 in cash and promised to pay the remaining balance within 30 day. Which journal will the transaction be recorded on?

Select one:

a.Sales journal

b.Cash receipts journal

c.Purchases journal

Costs incurred during the life of the asset are expensed right away if they do not extend the useful life of that asset or are capitalized if they extend the asset's useful life.

Select one:

a.True

b.False

A system is created when processes work together to generate information for the business.

Select one:

a.True

b.False

Audit trail is step-by-step trail of evidence documenting the history of a transaction from its inception and all the steps it went through until its completion.

Select one:

a.True

b.False

What is a source document?

Select one:

a.A table showing each amount owed and to whom it must be paid; total of the schedule should equal the total of accounts payable in the general ledger

b.A paper document or electronic record that provides evidence that a transaction has occurred and includes details about the transaction

c.Parts of accounting transactions that constitute the input to an accounting information system

When a customer purchases a product or service on credit, using an in-house account, Accounts Receivable increases and Sales Revenue increases.

Select one:

a.True

b.False

An employee for Five Steps, LLC brought $3,000 of inventory on the company's credit card. Which journal will the transaction be recorded in?

Select one:

a.Sales journal

b.Purchases journal

c.Cash disbursements journal

Financial statement fraud has occurred when financial statements intentionally hide illegal transactions or fail to accurately reflect the true financial condition of an entity.

Select one:

a.True

b.False

What is the computerized system to record and process a sale immediately when it occurs, usually by scanning the product bar code?

Select one:

a.point-of-sale system (POS)

b.enterprise resource planning (ERP)

c.cryptocurrency

Cash purchases of inventory would be recorded in the purchases journal with a debit to Merchandise Inventory and a credit to Accounts Payable.

Select one:

a.True

b.False

What are the basic four cost flow assumption methods? which are first-in, first-out (FIFO); last-in, first-out (LIFO); specific identification (SI); and weighted average (AVG).

Select one:

a.enterprise resource planning (ERP); last-in, first-out (LIFO); specific identification (SI); and weighted average (AVG)

b.first-in, first-out (FIFO); last-in, first-out (LIFO); specific identification (SI); and weighted average (AVG)

c.first-in, first-out (FIFO); last-in, first-out (LIFO); specific identification (SI); and lower-of-cost-or-market (LCM)

What account is used when a customer pays for a product or service on a line of credit?

Select one:

a.Principal

b.Accounts Receivable

c.Accounts Payable

An operating cycle is the amount of time it takes a company to use its cash to provide a product or service and collect payment from the customer.

Select one:

a.True

b.False

The first-in, first-out method (FIFO) records costs relating to a sale as if the earliest purchased item would be sold last.

Select one:

a.True

b.False

Which method is the allowance method approach that estimates bad debt expenses based on the assumption that at the end of the period, a certain percentage of sales during the period will not be collected.

Select one:

a.Income statement method

b.Direct write-off method

c.Completed contract method

What is a reduction in the value of an asset to the company based on its physical deterioration?

Select one:

a.Natural resources

b.Physical obsolescence

c.Functional obsolescence

____________________ is a special ledger that contains information about all vendors and the amounts we owe them.

Select one:

a.Accounts receivable subsidiary ledger

b.Accounts receivable control

c.Accounts payable subsidiary ledger

At what point does revenue recognition occur?

Select one:

a.When the company has met its obligation on a contract

b.When the seller receives the money for the job

c.When the purchaser makes payment

The ABC Company purchased a printer for $2,000, and spent $200 on sales taxes and $100 for delivery and setup, What is the capitalized costs?

Select one:

a.$1,700

b.$2,000

c.$2,300

________________ refers to using the internet to access software and information storage facilities provided by companies rather than, or in addition to, storing this data on the company's computer hard drive or in paper form.

Select one:

a.Cloud computing

b.Quickbooks

c.Periodic Inventory System