Filters
Question type
Study Flashcards

Unearned revenues refer to a(n) :


A) Asset that will be used over time.
B) Expense incurred because a customer has paid in advance.
C) Liability that is settled in the future when a company delivers its products or services.
D) Increase in assets as a result of delivering products or services to a customer.
E) Decrease in an asset.

F) A) and B)
G) B) and E)

Correct Answer

verifed

verified

Miley Block is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.  1.  Accounts Payable 7. Telephone Expense  2.  Accounts Receivable 8. Unearned Revenue  3.  Cash 9. Common Stock  4.  Consulting Fees Earned  10.  Dividends  5.  Office Supplies  11.  Insurance Expense 6. Office Supplies Expense 12. Prepaid Insurance \begin{array}{llll}\text { 1. } & \text { Accounts Payable } & 7 . & \text { Telephone Expense } \\\text { 2. } & \text { Accounts Receivable } & 8 . & \text { Unearned Revenue } \\\text { 3. } & \text { Cash } & 9 . & \text { Common Stock } \\\text { 4. } & \text { Consulting Fees Earned } & \text { 10. } & \text { Dividends } \\\text { 5. } & \text { Office Supplies } & \text { 11. } & \text { Insurance Expense } \\6 . & \text { Office Supplies Expense } & 12 . & \text { Prepaid Insurance }\end{array} Miley Block is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction. \begin{array}{llll} \text { 1. } & \text { Accounts Payable } & 7 . & \text { Telephone Expense } \\ \text { 2. } & \text { Accounts Receivable } & 8 . & \text { Unearned Revenue } \\ \text { 3. } & \text { Cash } & 9 . & \text { Common Stock } \\ \text { 4. } & \text { Consulting Fees Earned } & \text { 10. } & \text { Dividends } \\ \text { 5. } & \text { Office Supplies } & \text { 11. } & \text { Insurance Expense } \\ 6 . & \text { Office Supplies Expense } & 12 . & \text { Prepaid Insurance } \end{array}

Correct Answer

verifed

verified

On a trial balance, if the Debit and Credit column totals are equal, then:


A) All transactions have been recorded correctly.
B) All entries from the journal have been posted to the ledger correctly.
C) All ledger account balances are correct.
D) Equal debits and credits have been recorded for transactions.
E) The balance sheet would be correct.

F) A) and C)
G) A) and E)

Correct Answer

verifed

verified

Identify the account below that is classified as a liability in a company's chart of accounts:


A) Cash
B) Unearned Revenue
C) Salaries Expense
D) Accounts Receivable
E) Supplies

F) A) and B)
G) All of the above

Correct Answer

verifed

verified

All of the following statements accurately describe the debt ratio except.


A) It is of use to both internal and external users of accounting information.
B) A relatively low ratio signifies lower risk.
C) The ratio is computed by dividing total liabilities by total assets.
D) Higher financial leverage means greater risk.
E) The ratio is computed by dividing total equity by total liabilities.

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

Correct Answer

verifed

verified

Identify the account below that is classified as an asset in a company's chart of accounts:


A) Accounts Receivable
B) Accounts Payable
C) Common Stock
D) Unearned Revenue
E) Service Revenue

F) A) and E)
G) C) and D)

Correct Answer

verifed

verified

In a seller's accounting records, ________ are promises of payment waiting to be received from customers.

Correct Answer

verifed

verified

A ________ is a list of all the accounts used by a company and their identification codes but does not contain the balances.

Correct Answer

verifed

verified

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

A) True
B) False

Correct Answer

verifed

verified

Larry Matt completed these transactions during December of the current year: Larry Matt completed these transactions during December of the current year: Prepare general journal entries to record these transactions. Prepare general journal entries to record these transactions.

Correct Answer

verifed

verified

Russell Co. received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Russell Co. make to record the receipt of the bill?


A)  Utilities Expense 400 Accounts Receivable 400\begin{array}{|l|l|l|}\hline \text { Utilities Expense } & 400 & \\\hline \text { Accounts Receivable } & & 400 \\\hline\end{array}
B)  Cash 400 Utilities Expense 400\begin{array}{|l|r|}\hline \text { Cash } & 400 \\\hline \text { Utilities Expense } & 400\\\hline \end{array}
C)  Utilities Expense 400 Accounts Payable 400\begin{array}{|l|r|l|}\hline \text { Utilities Expense } & 400 & \\\hline \text { Accounts Payable } & & 400 \\\hline\end{array}
D)  Accounts Payable 400 Utilities Expense 400\begin{array}{|l|r|r|}\hline \text { Accounts Payable } & 400 & \\\hline \text { Utilities Expense } && 400 \\\hline\end{array}
E) No journal entry is required.

F) B) and E)
G) None of the above

Correct Answer

verifed

verified

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :


A) Account.
B) Trial balance.
C) Journal.
D) T-account.
E) Balance column account.

F) A) and D)
G) B) and D)

Correct Answer

verifed

verified

An asset created by prepayment of an insurance premium is:


A) Recorded as a debit to Unearned Revenue.
B) Recorded as a debit to Prepaid Insurance.
C) Recorded as a credit to Unearned Revenue.
D) Recorded as a credit to Prepaid Insurance.
E) Not recorded in the accounting records until the insurance period expires.

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

Correct Answer

verifed

verified

Which of the following is NOT an asset account:


A) Cash
B) Land
C) Services Revenue
D) Buildings
E) Equipment

F) A) and D)
G) C) and E)

Correct Answer

verifed

verified

Which of the following statements is not true:


A) Accounts receivable are held by a seller.
B) Accounts receivable arise from credit sales.
C) Accounts receivable are increased by customer payments.
D) Accounts receivable are classified as assets.
E) Accounts receivable are increased by billings to customers.

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

Correct Answer

verifed

verified

The record of all accounts and their balances used by a business is called a:


A) Journal.
B) Chart of accounts.
C) General Journal.
D) Balance column journal.
E) Ledger (or General Ledger) .

F) All of the above
G) B) and D)

Correct Answer

verifed

verified

Revenues and expenses are two categories of ________ accounts.

Correct Answer

verifed

verified

A debit entry always increases an account.

A) True
B) False

Correct Answer

verifed

verified

Sharp Services provided $800 of consulting work and $100 of design work to the same client. It billed the client for the total amount and is expecting to collect from the customer next month. Which of the following general journal entries did Sharp Services make to record the billing of the customer?


A)  Desion Revenue 100 Consulting Revenue 800 Accounts Receivable 900\begin{array}{|l|r|l|}\hline \text { Desion Revenue } & 100 & \\\hline \text { Consulting Revenue } & 800 & \\\hline \text { Accounts Receivable } & & 900\\\hline\end{array}
B)  Accounts Payable 800 Design Revenue 100 Consulting Revenue 800\begin{array}{|l|l|l|}\hline \text { Accounts Payable } & 800 & \\\hline \text { Design Revenue } & & 100 \\\hline \text { Consulting Revenue } & & 800 \\\hline\end{array}
C)  Desion Revenue 100 Consulting Revenue 800 Accounts Payable 900\begin{array}{|l|r|l|}\hline \text { Desion Revenue } & 100 & \\\hline \text { Consulting Revenue } & 800 & \\\hline \text { Accounts Payable } & &900 \\\hline\end{array}
D)  Unearned Revenue 900 Consulting Revenue 800 Design Revenue 100\begin{array}{|l|r|r|}\hline \text { Unearned Revenue } & 900 & \\\hline \text { Consulting Revenue } & & 800 \\\hline \text { Design Revenue } & & 100 \\\hline\end{array}
E)  Accounts Receivable 900 Consulting Revenue 800 Design Revenue 100\begin{array}{|l|l|l|}\hline \text { Accounts Receivable } & 900 & \\\hline \text { Consulting Revenue } & & 800 \\\hline \text { Design Revenue } & & 100 \\\hline\end{array}

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

Correct Answer

verifed

verified

Jackson Brown Footwear had total liabilities of $127.5 million and total assets of $375 million. Its debt ratio was ________.

Correct Answer

verifed

verified

34%
Explanation: Debt Ratio = ...

View Answer

Showing 101 - 120 of 251

Related Exams

Exam 1

Managerial Accounting Concepts and Principles

251 Questions

Exam 2

Job Order Costing and Analysis

216 Questions

Exam 3

Process Costing and Analysis

231 Questions

Exam 4

Activity-Based Costing and Analysis

223 Questions

Exam 5

Cost Behavior and Cost-Volume-Profit Analysis

248 Questions

Exam 6

Variable Costing and Analysis

202 Questions

Exam 7

Master Budgets and Performance Planning

215 Questions

Exam 8

Flexible Budgets and Standard Costs

221 Questions

Exam 9

Performance Measurement and Responsibility Accounting

210 Questions

Exam 10

Relevant Costing for Managerial Decisions

145 Questions

Exam 11

Capital Budgeting and Investment Analysis

157 Questions

Exam 12

Reporting Cash Flows

240 Questions

Exam 13

Analysis of Financial Statements

235 Questions

Exam 14

Time Value of Money

83 Questions

Exam 15

Lean Principles and Accounting

27 Questions

Show Answer