act210

• The primary function(s) of financial accounting is/are to

  Measure business activities of a company and communicate information about business activities to outside users
• Liabilities can be best described as

  The amount owed to creditors
• In which financial statement does a company report its revenues?

  Income Statement
• Financing activities include...


  Transactions involving external sources of funding
• When a company provides services on account, the accounting equation would be affected as follows:

  Assets increase and stockholders' equity increasesSee an expert-written answer!We have an expert-written solution to this problem!
• When a payment is made on an account payable:

  Assets and liabilities decrease
• Calculate Net Income:

  Revenues: $11,300

  Expenses: $3,900


  Net Income = 7,400
• When a company pays utilities of $1,700 in cash, the transaction is recorded as:

  Debit utilities expense $1,700, credit cash $1,700
• Investing cash flows in the statement of cash flows would include which of the following?


  Purchase of land
• Which of the following accounts normally has a debit balance?


  Supplies
• Which of the following would increase assets and increase liabilities?

  Purchase office supplies on account
• Which of the following transactions causes a decrease in stockholders' equity?

  Purchase office supplies on account
• Which of the following accounts would normally have a debit balance and appear in the balance sheet?

  Accounts Recievable
• An increase to an asset account is shown with a ___ , a decrease to an asset account is shown with a ___.

  Debit; Credit
• Xenon Corporation borrows $75,000 from First Bank, Xenon Corporation records this transaction with a:

  Credit to Notes Payable
• Assume that $18,600 cash is paid for insurance to cover the next year. The appropriate debit and credit are:

  Debit prepaid insurance $18,600, credit cash $18,600
• Clement Company paid an account payable related to a previous utility bill of $980. This transaction should be recorded as follows on the payment date:

  Debit accounts payable $980, credit cash $980
• On July 7, Saints Inc. received $9,000 in cash from a customer for services to be provided on October 10. Which of the following describes how the transaction should be recorded on July 7?

  Debit cash $9,000, credit deferred revenue $9,000
• The Accounts Receivable account has a beginning balance of $10,000 and the company provides services of $50,000 on account during the month. The ending balance was $12,000

  
  

  How much did the company receive from customers during the month?

  $48,000

  ($10,000 + $50,000 = $60,000 - $12,000 = $48,000)See an expert-written answer!We have an expert-written solution to this problem!
• A customer purchased a drill press on November 14 on account from Sears. The drill press was delivered two weeks later. The customer paid for the drill press on December 5. When should Sears record the revenue for this transaction according to the revenue recognition principle?

  November
• A company orders office supplies in June. Those supplies are received and paid for in July. The supplies are used in August. In which month should the company record supplies expense?

  August
• In November, a company hires three temporary employees that are scheduled to work only the month of December. Those employees work during December, and they are then paid their full salaries in January. In which month should the company record salaries expense?


  December
• Which of the following is true about an income statement?

  - It reports activity for a period of time

  - It does not include dividends paid

  - It reports revenues and expenses
• According to The Everything Store, in what city did Jeff Bezos begin his career after he graduated from Princeton University?

  New York
• In what city does Amazon.com have its headquarters?

  Seattle
• Permanent accounts would not include?

  Interest Expense
• Yummy foods purchased a one-year hazard insurance policy on august 1 and recorded the $4,200 premium to prepaid insurance.

  At its December 31 year-end, Yummy foods would record which of the following adjusting entries?


  Option A

  
• Using accrual-basis accounting, on which date should Bills Company record revenue for the accounting and tax services?

  D: January 11, 2019

  
• The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $32,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended December 31. What is the adjusting entry to record accrued salaries at the end of the year?


  Option D