Review Questions for Part A of Exam

What does debit mean?

What does credit mean?

List $3$ external users

List $2$ internal users

A January telephone bill of $$100$ was received on February $15$ and payment is due on March $5.$ In which month should the expense be recorded?

A company received $$3,000$ as an advance payment from one of its customers. How should this cash advance be recorded?

A company paid $$2,400$ in advance for insurance covering the next $12$ months. How should this advance payment be recorded?

An employee is responsible for a significant number of innovative and profitable designs for a company. The employee is paid $$1$ million per year and has so far worked for this company for $7$ years. The employee plans to work for the company for at least $5$ more years. How much $($on the assets$)$ should the value of this employee be recorded?