Question

In: Accounting

Which of the following groups contain only accounts that normally have credit balances? Accounts Receivable and...

Which of the following groups contain only accounts that normally have credit balances?
1. Accounts Receivable and Fees Income

b. Salaries Expense and Accounts Payable

c. Fees Income and Notes Payable

d. Accounts Payable and Equipment

The Chef Manager received a vendor shipment on the last day of the accounting period, after submitting the period’s ending inventory. What should be done to make sure the financials are correctly stated?

Nothing
Adjust the ending inventory
Adjust the ending inventory and process the vendor payment
Process the vendor payment

Unpaid product cost is accrued for by crediting which of the following accounts?

Expense Account
Liability Account
Prepaid Asset Account

Company X received money in advance of providing services to Company Y. The money received before it is earned is an increase to Company X’s cash. The offsetting GL account should be?

An asset GL Account
A liability GL Account
A revenue GL Account

Compass pays an insurance invoice of $2,000 in advance. What is the correct entry?
1. Dr Insurance Prepaid – Cr Cash
2. Dr Insurance Expense – Cr Insurance Prepaid

c. Dr Cash – Cr Insurance Prepaid

Entries for accrued expenses include a debit to an expense account?

True
False

Compass invoices a client for fees. Which account is the debit entry posted to?

Accounts receivable
Accounts payable

What entry should you make in a liability account to decrease a liability?

Credit
Debit

What entry should you make in an asset account to increase an asset?

Credit
Debit

Expert Solution

ekkarill92 answered 1 year ago

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