Question 1: Interpreting a journal entry is as important as its creation. Match the following journal entry to its effect.

Dr:Inventory

Cr:Accounts Payable

Group of answer choices

Choices:

a.The company has agreed to be invoiced for exchange of purchased product.

b.The company has collected payment from existing customers.

c.The company has used existing inventory in exchange of service made to a customer.

d.The company has agreed to lend inventory in exchange for temporary funding.

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Question 2: Accountants have developed principles to use as guidelines in determining how revenues and expensesare reported in a given period. Select the appropriate method(s) to use in the workplace.

Choices:

a.expense recognition principal

b.cash basis accounting principal

c.both cash basis and revenue recognition accounting principals are correct

d.revenue recognition principal

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Question 3: In general, activity ratios asks the question for efficient use of capital, "For every dollar invested, how many dollars of revenue are generated?"Which ratio does this describe?

Choices:

a.Accounts Receivable Turnover

b.Customer Turnover

c.Total Asset Turnover

d.Inventory Turnover

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Question 4: Hot Topic CEO Thomas Johnson announced yesterday that it has the highest quick ratio in the company's history; thus relieving any worries from its creditors. This quick ratio announcement is primarily caused from the subtraction of what balance sheet account?

Choices:

a. Accounts Payable

b. Investments

c. Inventory

d. Accounts Receivable

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Question 5: It is favorable to always have excess short-term funds available to invest, healthcare organizations often find that they need to borrow funds for short periods to meet their maturing obligations. Which of the following is a source that legally requires the bank to fulfill the borrower's credit request up to a pre-negotiated limit?

Choices:

a. Revolving Line of Credit

b. Compensating Balance

c. Unsecured Bank Loan

d. Normal Line of Credit