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Adjusting Entry

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On December 31, prior to adjustments, the balance of Accounts Receivable is $16,000 and Allowance for Doubtful Accounts has a credit balance of $95. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for;A) $705.;B) $800.;C) $895.;D) $95.;10.;The adjusting entry to record accrued interest on a note receivable requires;A) a debit to Interest Income and a credit to Notes Receivable.;B) a debit to Interest Receivable and a credit to Interest Revenue.;C) a debit to Interest Revenue and a credit to Cash.;D) a debit to Interest Revenue and a credit to Interest Receivable.;11.;When a company issues a promissory note, the accountant records an entry that includes a credit to Note Receivable for;A) the face value of the note.;B) the face value of the note plus the interest that will accrue.;C) the face value less the interest that will accrue.;D) the maturity value of the note.;12.;How much interest will accrue on a $20,000 face value, 60-day note that bears interest at 9 percent a year (based on a 360 day year)?;A) $300;B) $1,800;C) $450.;D) $900.;13.;Notes payable which are to be satisfied with current assets and are due within one year are usually shown;A) in the Current Assets section of the balance sheet.;B) in the Current Liabilities section of the balance sheet;C) in the Other Expenses section of the income statement.;D) in the Long-Term Liabilities section of the balance sheet.;14.;Upon collection of the amount due on a $6,000 face value, 90-day note with interest at 10 percent a year, the Note Receivable account is;A) debited for $6,600.;B) credited for $6,000.;C) credited for $6,150.;D) debited for $6,000.;15.;The balance sheet shows;A) the results of business operations.;B) all revenues and expenses.;C) the amount of net income or loss.;D) the financial position of a business at a given time.;16.;Amounts that a business must pay in the future are known as;A) accounts receivable.;B) accounts payable.;C) stock.;D) expenses.;17.;Examples of assets are;A) cash and accounts receivable.;B) cash and revenue.;C) cash and rent expense.;D) investments by the owner and revenue.;18.;A net loss results;A) when expenses are greater than revenue.;B) when assets are greater than liabilities.;C) when revenue is greater than expenses;D) when expenses are greater than assets.;19.;The income statement shows;A) the financial position of a business on a specific date.;B) revenue and stockholders? equity.;C) the results of operations for a period of time.;D) the total value of the business.;20.;If liabilities are $4,000 and stockholders? equity is $15,000, assets are;A) $9,000.;B) $15,000.;C) $19,000.;D) $4,000.;21.;Assets and liabilities are reported on;A) the balance sheet.;B) the income statement.;C) the statement of stockholders? equity.;D) both the balance sheet and the income statement.;22.;The rent paid for future months is a (n);A) asset.;B) liability.;C) expense.;D) revenue.;23.;Credits are used to record;A) decreases in assets and stockholders? equity and increases in liabilities.;B) decreases in assets, liabilities, and stockholders? equity.;C) decreases in liabilities and increases in assets and stockholders? equity.;D) increases in liabilities and stockholders? equity.;24.;Debits are used to record increases in;A) assets and revenue.;B) revenue and stockholders? equity.;C) assets and expenses.;D) assets and liabilities.;25.;A firm paid cash to apply against a debt. To record this transaction, the accountant would;A) debit Accounts Receivable and credit Cash.;B) debit Accounts Payable and credit Cash.;C) debit Cash and credit Accounts Payable.;D) Debit Cash and credit Accounts Receivable.;26.;When charge customers pay cash to apply against their accounts, the amount is recorded;A) on the debit side of the Cash account and the credit side of the Fees Income account.;B) on the debit side of the Accounts Payable account and the credit side of the Cash account.;C) on the debit side of the Cash account and the credit side of the Accounts Receivable account.;D) on the debit side of the Accounts Receivable account and the credit side of the Cash account.;27.;The account used to record increases in stockholders? equity from the sale of goods or services is;A) the revenue account.;B) the Cash account.;C) the stock account.;D) the dividends account.;28.;Which of the following types of accounts normally have debit balances?;A) assets and revenue.;B) assets, liabilities, and stockholders? equity.;C) expenses and assets.;D) liabilities and Stockholders? equity.;29.;Which of the following groups contain only accounts that normally have credit balances?;A) accounts receivable and fees income.;B) salaries expense and accounts payable.;C) fees income and stock.;D) accounts payable and equipment.;30.;The journal entry to record the sale of services on credit should include;A) debit to Accounts Receivable and a credit to Stock.;B) a debit to Cash and a credit to Accounts Receivable.;C) a debit to Fees Income and a credit to Accounts Receivable.;D) a debit to Accounts Receivable and a credit to Fees Income.

 

Paper#35120 | Written in 18-Jul-2015

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