a. Debits to asset accounts must create credits to liability or equity accounts
b. A debit to a liability account must create a credit to an asset accounts
c. Total debits must equal total credits
d. None of thes
For each transaction, double-entry accounting requires which of the following: Read More »
a. It is a separate legal entity
b. It has a limited life
c. Income that is distributed to owners is usually taxed twice
d. Ownership rights can be easily transferred
Of the following statements, which one is untrue for the corporate form of organization Read More »
a. Accrued revenue
b. Accrued expenses
c. Unearned Revenue
d. Prepaid Revenue
a. Straight line
b. Units of production
c. Declining balance
d. Depletion
a. Office supplies (Debit)
b. Cash (Debit)
c. Wages payable (Credit)
d. Fee earned (Debit)
a. Trial balance
b. Income statement
c. Balance sheet
d. Invoice from supplier
Identify the item that is likely to serve as source document Read More »
(a) Quick ratio
(b) Inventory turnover
(c) Times interest earned
(d) None of these
Bond holders would be most interested in which of the following? Read More »
(a) Temporary accounts
(b) Permanent accounts
(c) Personal accounts
(d) None of these
(a) Cash in hand
(b) Surplus or Deficiency
(b) Capital Fund
(d) none of these
Which of the following is ascertained by drawing up an income and expenditure account? Read More »
(a) Purchases, inventory, and sales returns.
(b) Gross profit, purchase returns and carriage inward.
(c) Inventory, net sales and purchases
(d) none of these
Which of the following list of accounts is used to compute the cost of goods sold? Read More »
