83 which of the following liability accounts is likely to be satisfied without a fut 4314250

83 which of the following liability accounts is likely to be satisfied without a fut 4314250

83.Which of the following liability accounts is likely to be satisfied without a future cash payment?

A. Wages payable.

B. Unearned subscriptions revenue.

C. Accounts payable.

D. Taxes payable.

84.A company receives a $50,000 cash deposit from a customer on October 15 but will not deliver the goods until November 20. Which of the following statements is true? 

A. Cash will be reported on the statement of cash flows for the month of November.

B. Revenue will be recorded and reported on the income statement for October.

C. A liability will be reported on the balance sheet at the end of October.

D. A prepaid asset will be reported on the balance sheet at the end of October.

85.A company purchased $20,000 of inventory during February and will pay for it during March. Which of the following statements is false, assuming the inventory was sold during March? 

A. The company's accounts payable will include the $20,000 on the February month-end balance sheet.

B. The statement of cash flows will report an operating cash outflow of $20,000 during March.

C. The income statement will report cost of goods sold of $20,000 during February.

D. The company's inventory will include the $20,000 on the February month-end balance sheet.

86.Which of the following correctly applies the revenue recognition principle? 

A. Recognize revenue in December 2016 for products manufactured but not yet delivered to customers.

B. Recognize cash received in advance from customers as revenue when the product is not yet shipped.

C. Not recognize dividend revenue in 2016 until the cash is received in 2017.

D. Recognize revenue in December 2016 for products sold but not yet paid for in full.

87.Which of the following accounts normally have a credit balance?

A. Unearned revenue; Prepaid rent; Sales revenue.

B. Sales revenue; Expenses; Retained earnings.

C. Sales revenue; Cash; Unearned revenue.

D. Accounts payable; Retained earnings; Sales revenue.

88.During 2016, Sensa Corporation incurred operating expenses amounting to $100,000 of which $75,000 was paid in cash; the balance will be paid during 2017. Which of the following is correct for the 2016 year-end balance sheet?

A. Stockholders' equity decreases $75,000 and assets decrease $75,000.

B. Assets decrease $100,000 and stockholders' equity decreases $100,000.

C. Assets decrease $100,000, liabilities increase $25,000, and stockholders' equity decreases $100,000.

D. Stockholders' equity decreases $100,000, assets decrease $75,000, and liabilities increase $25,000.

89.Which of the following accounts normally have a debit balance?

A. Prepaid expenses, Wages payable, Dividends.

B. Cash, Utilities expense, Accounts receivable.

C. Retained earnings, Cost of goods sold, Wages expense.

D. Utilities expense, Prepaid expenses, Wages payable.

90.Which of the following statements is false?

A. Expense accounts have a debit balance.

B. Revenue accounts have a credit balance.

C. Gain accounts have a credit balance.

D. Loss accounts have a credit balance.

91.Which of the following statements is correct? 

A. Expense accounts result in decreases in net income and stockholders' equity and therefore have credit balances.

B. Revenue accounts result in increases in net income and stockholders' equity and therefore have debit balances.

C. Loss accounts result in decreases in net income and stockholders' equity and therefore have debit balances.

D. Gain accounts result in increases in net income and stockholders' equity and therefore have debit balances.

92.Which of the following journal entries correctly records a transaction where services were provided to a customer on account? 

A. Cashxxx

B. Unearned revenuexxx

C. Accounts receivablexxx

D. Service revenuexxx

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