Accounting

The advance cash payments of future expenses are called ________.

The advance cash payments of future expenses are called ________.

The advance cash payments of future expenses are called ________.
A) accrued expenses
B) deferred revenues
C) deferred expenses
D) accrued revenues

H3Ko   328   4 Replies

Pranav Chinnadorai

A receivable occurs when a business sells goods or services to another party on account.

A receivable occurs when a business sells goods or services to another party on account.

A receivable occurs when a business sells goods or services to another party on account.
A) True
B) False

H3Ko   199   3 Replies

Mrgo-breed

For accounting purposes, depreciation refers to the ________.

For accounting purposes, depreciation refers to the ________.

For accounting purposes, depreciation refers to the ________.
A) process of selling a used asset
B) method of allocating the cost of a plant asset to expense it over its useful life
C) method of estimating an asset's current marke

H3Ko   149   3 Replies

Mrgo-breed

A receivable is a monetary claim against a business or an individual.

A receivable is a monetary claim against a business or an individual.

A receivable is a monetary claim against a business or an individual.
A) True
B) False

H3Ko   145   3 Replies

Mrgo-breed

The Accumulated Depreciation account is ________.

The Accumulated Depreciation account is ________.

The Accumulated Depreciation account is ________.
A) a record of the sum of all the depreciation expense recorded
B) the price quoted to the buyer of a used asset
C) the expense account used to expense the cost of an asset
D) an e

H3Ko   181   3 Replies

Mrgo-breed

A debtor is a party to a credit transaction who will receive the cash for the transaction at a later ...

A debtor is a party to a credit transaction who will receive the cash for the transaction at a later ...

A debtor is a party to a credit transaction who will receive the cash for the transaction at a later date.
A) True
B) False

H3Ko   276   3 Replies

Mrgo-breed

Qwerty, Inc. prepaid $9,600 on October 1, 2014 for a one-year insurance premium. On January 1, 2015 ...

Qwerty, Inc. prepaid $9,600 on October 1, 2014 for a one-year insurance premium. On January 1, 2015 ...

Qwerty, Inc. prepaid $9,600 on October 1, 2014 for a one-year insurance premium. On January 1, 2015 of the next year (after December 31 adjustments), the Prepaid Insurance account will have a debit balance of ________. (Round any intermediate calcula

H3Ko   448   2 Replies

H3Ko

The two major types of receivables are interest receivable and taxes receivable.

The two major types of receivables are interest receivable and taxes receivable.

The two major types of receivables are interest receivable and taxes receivable.
A) True
B) False

H3Ko   454   2 Replies

H3Ko

A business purchased equipment for $140,000 on January 1, 2017. The equipment will be depreciated ...

A business purchased equipment for $140,000 on January 1, 2017. The equipment will be depreciated ...

A business purchased equipment for $140,000 on January 1, 2017. The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method. The business records depreciation once a year on December

H3Ko   266   3 Replies

Mrgo-breed

Accounts receivable are also known as trade receivables.

Accounts receivable are also known as trade receivables.

Accounts receivable are also known as trade receivables.
A) True
B) False

H3Ko   128   2 Replies

H3Ko

On September 1, 2016, Joy, Inc. paid $8,000 in advance for an eight-month rental space covering the ...

On September 1, 2016, Joy, Inc. paid $8,000 in advance for an eight-month rental space covering the ...

On September 1, 2016, Joy, Inc. paid $8,000 in advance for an eight-month rental space covering the period of September, 2016 through April 2017. The deferred expense was initially recorded as an asset. Joy, Inc. makes adjusting entries once a year a

H3Ko   467   2 Replies

H3Ko

The collection period of accounts receivable is usually long: therefore, it is classified as a ...

The collection period of accounts receivable is usually long: therefore, it is classified as a ...

The collection period of accounts receivable is usually long: therefore, it is classified as a long-term asset on the balance sheet.
A) True
B) False

H3Ko   411   2 Replies

H3Ko

Accumulated Depreciation is a(n) ________ account and carries a normal ________ balance.

Accumulated Depreciation is a(n) ________ account and carries a normal ________ balance.

Accumulated Depreciation is a(n) ________ account and carries a normal ________ balance.
A) expense; debit
B) revenue; debit
C) contra asset; credit
D) liability; credit

H3Ko   188   4 Replies

NATE THE GREAT1

Notes receivable represents a written promise that a party will pay a fixed amount of principal plus ...

Notes receivable represents a written promise that a party will pay a fixed amount of principal plus ...

Notes receivable represents a written promise that a party will pay a fixed amount of principal plus interest on a stated maturity date.
A) True
B) False

H3Ko   313   2 Replies

H3Ko

What type of account is Prepaid Rent, and what is its normal balance?

What type of account is Prepaid Rent, and what is its normal balance?

What type of account is Prepaid Rent, and what is its normal balance?
A) It is a revenue account and has a credit balance.
B) It is a liability account and has a credit balance.
C) It is an expense account and has a debit balance.

H3Ko   179   2 Replies

H3Ko

The terms of payment for a note receivable are generally longer than that of an account ...

The terms of payment for a note receivable are generally longer than that of an account ...

The terms of payment for a note receivable are generally longer than that of an account receivable.
A) True
B) False

H3Ko   112   2 Replies

H3Ko

What is the term used for the difference between the Equipment account and the Accumulated ...

What is the term used for the difference between the Equipment account and the Accumulated ...

What is the term used for the difference between the Equipment account and the Accumulated Depreciation account?
A) book value
B) historical cost
C) contra asset
D) market value

H3Ko   98   2 Replies

H3Ko

Dividends receivable, interest receivable, and taxes receivable are generally categorized as other ...

Dividends receivable, interest receivable, and taxes receivable are generally categorized as other ...

Dividends receivable, interest receivable, and taxes receivable are generally categorized as other receivables.
A) True
B) False

H3Ko   360   3 Replies

Mrgo-breed

Hank's Tax Planning Service started business in January 2016. The company rented an office for ...

Hank's Tax Planning Service started business in January 2016. The company rented an office for ...

Hank's Tax Planning Service started business in January 2016. The company rented an office for $7,000 per month starting from January 1, 2016. On that day, Hank prepaid the rent through June 30. The company makes adjusting entries at the end of

H3Ko   210   3 Replies

Mrgo-breed

Which of the following is included in the category of other receivables?

Which of the following is included in the category of other receivables?

Which of the following is included in the category of other receivables?
A) notes receivable
B) accounts receivable
C) investments
D) interest receivable

H3Ko   171   2 Replies

H3Ko

Russin Tax Planning Service bought computer equipment for $22,000 on January 1, 2016. It has an ...

Russin Tax Planning Service bought computer equipment for $22,000 on January 1, 2016. It has an ...

Russin Tax Planning Service bought computer equipment for $22,000 on January 1, 2016. It has an estimated useful life of four years and zero residual value. Russin uses the straight-line method to calculate depreciation and records depreciation expen

H3Ko   302   2 Replies

H3Ko

Which of the following statements is true?

Which of the following statements is true?

Which of the following statements is true?
A) Accounts receivable are more liquid than cash.
B) Accounts receivable are liabilities.
C) Notes receivable are always classified as current assets.
D) Notes receivable usually have lon

H3Ko   316   2 Replies

H3Ko

Downs Tax Planning Service bought communications equipment for $9,600 on January 1, 2017. It has an ...

Downs Tax Planning Service bought communications equipment for $9,600 on January 1, 2017. It has an ...

Downs Tax Planning Service bought communications equipment for $9,600 on January 1, 2017. It has an estimated useful life of five years and zero residual value. Downs uses the straight-line method to calculate depreciation and records depreciation ex

H3Ko   298   3 Replies

Mrgo-breed

Which of the following statements, regarding notes receivable, is incorrect?

Which of the following statements, regarding notes receivable, is incorrect?

Which of the following statements, regarding notes receivable, is incorrect?
A) A notes receivable is a written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future.
B) Notes receivable

H3Ko   514   2 Replies

H3Ko

DeLito Tax Planning Service bought production equipment for $10,200 on January 1, 2017. It has an ...

DeLito Tax Planning Service bought production equipment for $10,200 on January 1, 2017. It has an ...

DeLito Tax Planning Service bought production equipment for $10,200 on January 1, 2017. It has an estimated useful life of five years and zero residual value. DeLito uses the straight-line method to calculate depreciation and records depreciation exp

H3Ko   795   5 Replies

Abdul Moeid

The credit department must have access to cash in order to exercise effective internal control over ...

The credit department must have access to cash in order to exercise effective internal control over ...

The credit department must have access to cash in order to exercise effective internal control over receivables.
A) True
B) False

H3Ko   202   2 Replies

H3Ko

Ursula Tax Planning Service has the following plant assets: Communications equipment: Cost, $7,120 ...

Ursula Tax Planning Service has the following plant assets: Communications equipment: Cost, $7,120 ...

Ursula Tax Planning Service has the following plant assets: Communications equipment: Cost, $7,120 with useful life of eight years; Furniture: Cost, $21,600 with useful life of 12 years; and Computer: Cost, $13,600 with useful life of four years. (As

H3Ko   1184   13 Replies

Alkan AKISU

Which of the following is an example of exercising internal control over receivables?

Which of the following is an example of exercising internal control over receivables?

Which of the following is an example of exercising internal control over receivables?
A) separating cash collection and credit approval duties
B) combining the duties of the credit and accounting departments
C) extending credit to all

H3Ko   265   2 Replies

H3Ko

Ariel Tax Planning Service has the following plant assets: Communications equipment: Cost, $8,640 ...

Ariel Tax Planning Service has the following plant assets: Communications equipment: Cost, $8,640 ...

Ariel Tax Planning Service has the following plant assets: Communications equipment: Cost, $8,640 with useful life of 8 years; Furniture: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $13,440 with useful life of 4 years. Assume the

H3Ko   676   2 Replies

H3Ko

Which of the following is a weak internal control over cash collections from receivables?

Which of the following is a weak internal control over cash collections from receivables?

Which of the following is a weak internal control over cash collections from receivables?
A) A company should have written approval standards for processing customers' credit applications.
B) The credit department should have no access

H3Ko   556   2 Replies

H3Ko

Viva, Inc. bought machine X for $18,000 two years ago. The machine had no residual value and had an ...

Viva, Inc. bought machine X for $18,000 two years ago. The machine had no residual value and had an ...

Viva, Inc. bought machine X for $18,000 two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the current book value of the machine.
A)

H3Ko   169   2 Replies

H3Ko

Businesses must maintain a single Accounts Receivable account regardless of the number of ...

Businesses must maintain a single Accounts Receivable account regardless of the number of ...

Businesses must maintain a single Accounts Receivable account regardless of the number of customers.
A) True
B) False

H3Ko   531   2 Replies

H3Ko

Separate customer accounts receivable are called subsidiary accounts.

Separate customer accounts receivable are called subsidiary accounts.

Separate customer accounts receivable are called subsidiary accounts.
A) True
B) False

H3Ko   129   2 Replies

H3Ko

Markus Company maintains a separate accounts receivable account for each customer. On June 18, ...

Markus Company maintains a separate accounts receivable account for each customer. On June 18, ...

Markus Company maintains a separate accounts receivable account for each customer.  On June 18, Markus sells $6,400 services on account to customer Anthony and $1,000 services on account to customer Walker.  How will these two transactions

H3Ko   482   2 Replies

H3Ko

A business maintains subsidiary accounts for each of its customers. On May 15, the business sells ...

A business maintains subsidiary accounts for each of its customers. On May 15, the business sells ...

A business maintains subsidiary accounts for each of its customers.  On May 15, the business sells services on account: $2,100 to customer J. Simmons; $4,000 to customer A. Jones; and $1,500 to customer J. Williams.  Which journal entry is

H3Ko   487   3 Replies

Mrgo-breed

Sales through credit cards and debit cards are journalized in the same way as sales on account.

Sales through credit cards and debit cards are journalized in the same way as sales on account.

Sales through credit cards and debit cards are journalized in the same way as sales on account.
A) True
B) False

H3Ko   342   3 Replies

Mrgo-breed

Sales through credit cards or debit cards transfer the risk of collection of receivables from the ...

Sales through credit cards or debit cards transfer the risk of collection of receivables from the ...

Sales through credit cards or debit cards transfer the risk of collection of receivables from the seller to the card issuer.
A) True
B) False

H3Ko   272   3 Replies

Mrgo-breed

On November 1, 2017, Lotz, Inc. sold merchandise for $10,000, FOB destination, with payment terms of ...

On November 1, 2017, Lotz, Inc. sold merchandise for $10,000, FOB destination, with payment terms of ...

On November 1, 2017, Lotz, Inc. sold merchandise for $10,000, FOB destination, with payment terms of 2/10, n/40. Customer returns on this sale amounted to $5,000. The company received payment for the balance on November 10, 2017. The cost of goods so

H3Ko   574   3 Replies

Meghan Brownlie

When a business accepts payment by credit cards or debit cards, a fee is paid to the card ...

When a business accepts payment by credit cards or debit cards, a fee is paid to the card ...

When a business accepts payment by credit cards or debit cards, a fee is paid to the card processor.
A) True
B) False

H3Ko   305   2 Replies

H3Ko

Weston Jewelers uses the perpetual inventory system. On April 2, Weston sold merchandise with a cost ...

Weston Jewelers uses the perpetual inventory system. On April 2, Weston sold merchandise with a cost ...

Weston Jewelers uses the perpetual inventory system. On April 2, Weston sold merchandise with a cost of $6,000 for $9,000 to a customer on account with terms of 2/15, n/30. On April 4, the customer reported damaged goods, and Michelin granted a $1,00

H3Ko   602   4 Replies

Evan Ahdout