Question

In: Accounting

7) Which of the following types of accounts typically have a “Credit” balance? a. Assets, liabilities...

7) Which of the following types of accounts typically have a “Credit” balance?

a. Assets, liabilities

b. Liabilities, expenses

c. Revenue, liabilities

d. Capital stock, assets

8) Which of the following describes the “classification” and the “normal balance” of the Fee

Revenue account?

a. Asset, credit

b. Liability, credit

c. Retained Earnings, debit

d. Revenue, credit

9) Amounts ($$) that a business is owed “from” its customers are referred to as:

a. Accounts Receivables

b. Equities

c. Stockholders’ Equity

d. Liabilities

10) When should the balance sheet be prepared?

a. before the income statement and the owner’s equity statement

b. before the income statement and after the owner’s equity statement

c. after the income statement and the owner’s equity statement

d. after the income statement and before the owner’s equity statement

Solutions

Expert Solution

7) Correct Option is C. Revenue and liabilities

Revenue, Capital Stock and liabilities account has credit Balance.

Asset and expense has debit balance.

Hence the correct option is c.

Correct option is D. Revenue, Credit

Fee Revenue Account represents the revenue earned during the period and revenue account should have a credit balance.

Customers are the Accounts Receivable.

So the amount that a business is owed from it's customers are referred to as Accounts Receivable.

Hence the correct option is A.

10)

Correct option is D.

Balance Sheet is prepared after the preparation of Income Statement and before the.Owners equity statement

ekkarill92 answered 1 year ago

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