Question

1. Richard Bains, a professional accountant, performed accounting service December, A bill was mailed to the client on December 30. Richard transfer on January 5. The Revenue recognition principle requires the following accounts appears on the balance sheet at December 31?

a) Prepaid expense b) Accounts receivable c) Unearned revenue d) Accounts payable

2. A business acquires equipment costing $10,000 by making a $2,000 ISSuing a note for the balance. This transaction will cause:

a) Notes payable to be debited for $8,000 b) Cash to be credited for $8,000 c) Equipment to be debited for $10,000 d) Equipment to be credited for $8,000

3. Purchasing supplies on account would include a:

a) Debit to supplies and a credit to accounts payable b) Debit to supplies and a credit to notes payable c) Debit to supplies and a debit to accounts payable d) Debit to supplies and a credit to cash

4. Unearned revenue has:

a) Not been earned but the cash has been received b) Been earned and the cash has been received Been earned but the cash has not been received d) Not been earned nor has the cash been received

5. The accounts that appear on a post-closing trial balance are:

a) Revenues, expenses, and capital b) Assets, liabilities, and expenses

Answer 1