Question

In: Accounting

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

  1. 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

  1. 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?
  1. Nothing
  2. Adjust the ending inventory
  3. Adjust the ending inventory and process the vendor payment
  4. Process the vendor payment
  1. Unpaid product cost is accrued for by crediting which of the following accounts?
  1. Expense Account
  2. Liability Account
  3. Prepaid Asset Account

  1. 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?
  1. An asset GL Account
  2. A liability GL Account
  3. A revenue GL Account

  1. 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

  1. Entries for accrued expenses include a debit to an expense account?
  1. True
  2. False
  1. Compass invoices a client for fees. Which account is the debit entry posted to?
  1. Accounts receivable
  2. Accounts payable
  1. What entry should you make in a liability account to decrease a liability?
  1. Credit
  2. Debit
  1. What entry should you make in an asset account to increase an asset?
  1. Credit
  2. Debit

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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