FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Analyzing for Business Transactions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

A law firm billed a client $1,800 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

A) Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800.
B) Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800.
C) Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800.
D) Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800.
E) Debit Cash, $1,800; credit Accounts Receivable, $1,800.

F) C) and E)
G) B) and C)

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

Identify the statement below that is correct.

A) The left side of a T-account is the credit side.
B) Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts.
C) The left side of a T-account is the debit side.
D) Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts.
E) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.

F) B) and C)
G) A) and B)

Correct Answer

verified

Show Answer

Question 83

True/False

Review LaterAdd Note

The detail of individual revenue and expense accounts is reported on the statement of retained earnings.

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year: Assets Liabilities Beginning of the year $114,000 $68,000 End of the year 135,000 73,000 If there were no stockholder investments in the business and no dividends paid during the year, what was the amount of net income earned by Jerry's Butcher Shop?

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year: Assets Liabilities Beginning of the year $114,000 $68,000 End of the year 135,000 73,000 If there were no stockholder investments in the business but the company paid $5,000 in dividends during the year, what was the amount of net income earned by Jerry's Butcher Shop?

The balance column in a ledger account is:

A company's formal promise to pay (in the form of a promissory note) a future amount is a(n) :

A business's general journal provides a place for recording all of the following except:

J. Smith, the sole stockholder, received a $100 dividend from Jay's Limo Services. Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Preparation of a trial balance is the first step in processing a financial transaction.

During the month of March, Harley's Computer Services made purchases on account totaling $43,500. Also during the month of March, Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?

The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?

All of the following are asset accounts except:

________ requires that each transaction affect, and be recorded in, at least two accounts. It also means that total amounts debited must equal total amounts credited for each transaction.

An income statement reports the revenues earned less the expenses incurred by a business over a period of time.

A report that lists a business's accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n) :

The debt ratio is calculated by dividing total assets by total liabilities.

An account's balance is the difference between the total debits and total credits for the account, including any beginning balance.

A record containing all the separate accounts for a company as well as all of their balances is called the________

A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.