1 . When a company has performed a service but has not yet received payment, it a....
Question:
1 . When a company has performed a service but has not yet received payment, it
a. debits accounts receivable and credits revenue from services.
b. debits revenue from services and credits accounts receivable.
c. debits revenue from services and credits accounts payable.
d. makes no entry until the cash is received.
2 . Paying accounts payable will
a. not affect total assets.
b. increase liabilities.
c. not affect stockholders' equity.
d. decrease net income.
3. A debit to an asset account indicates a(n)
a. error.
b. credit was made to a liability account
c. decrease in the asset.
d. increase in the asset.
4. A journal pro% ides
a. the balances for each account.
b. information about a transaction in several different places.
c. a list of all accounts used in the business.
d. a chronological record of transactions.
5. An accounting report that includes a list of accounts and their balances at a given time is called a
a. trial balance
b. general journal.
c. general ledger.
d. chart of accounts.
6. The usual sequence of steps in the recording process is to
a. analyze each transaction, enter the transaction in the journal, and transfer the information to the ledger accounts.
b. analyze each transaction, enter the transaction in the ledger, and transfer the information to the journal.
c. analyze each transaction, enter the transaction in the book of accounts, and transfer the information to the journal.
d. analyze each transaction, enter the transaction in the book of original entry, and transfer the information to the journal.
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