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Question 1.1. As prepaid expenses expire with the passage of time, the correct adjusting entry will be a:

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Question 1.1. As prepaid expenses expire with the passage of time, the correct adjusting entry will be a;debit to an asset account and a credit to an expense account.;debit to an expense account and a credit to an asset account.;debit to an asset account and a credit to an asset account.;debit to an expense account and a credit to an expense account.;Question 2.2. An investment by the stockholders in a business increases;assets and stockholders' equity.;assets and liabilities.;liabilities and stockholders' equity.;assets only.;Question 3.3. Which of the following describes the classification and normal balance of the Retained Earnings account?;Asset, debit;Stockholders' equity, credit;Revenues, credit;Expense, debit;Question 4.4. If total liabilities decreased by $4,000, then;stockholders' equity must have decreased by $4,000.;assets must have decreased by $4,000, or stockholders' equity must have increased by $4,000.;assets and stockholders' equity each increased by $2,000.;assets must have increased by $4,000.;Question 5.5. If expenses are paid in cash, then;assets will increase.;liabilities will decrease.;stockholders' equity will increase.;assets will decrease.;Question 6.6. The Harris Company purchased a computer for $3,000 on December 1. It is estimated that annual depreciation on the computer will be $600. If financial statements are to be prepared on December 31, the company should make the following adjusting entry;debit Depreciation Expense, $600, credit Accumulated Depreciation, $600.;debit Depreciation Expense, $50, credit Accumulated Depreciation, $50.;debit Depreciation Expense, $2,400, credit Accumulated Depreciation, $2,400.;debit Office Equipment, $3,000, credit Accumulated Depreciation, $3,000.;Question 7.7. All of the following are required steps in the accounting cycle except;journalizing and posting closing entries.;preparing an adjusted trial balance.;preparing a post-closing trial balance.;preparing a work sheet.;Question 8.8. An adjusting entry;affects two balance sheet accounts.;affects two income statement accounts.;affects a balance sheet account and an income statement account.;is always a compound entry.;Question 9.9. Assets normally show;credit balances.;debit balances.;debit and credit balances.;debit or credit balances.;Question 10.10. Given the following adjusted trial balance;Debit Credit;Cash $781;Accounts receivable1,049;Inventory1,562;Prepaid rent 43;Property, plant & equipment150;Accumulated depreciation26;Accounts payable41;Unearned revenue61;Common stock103;Retained earnings3,305;Service revenue134;Interest revenue28;Salary expense 80;Travel expense 33;Total $3,698 $3,698;After closing entries have been posted, the balance in retained earnings will be;$3,256;$3,170;$3,440;$3,354

 

Paper#75635 | Written in 18-Jul-2015

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