A check drawn by a company for 340 in payment of a liability was recorded in the journal as 430 . What entry isrequired in the company's accounts?
a. debit Accounts Payable; credit Cash
b. debit Cash; credit Accounts Receivable
c. debit Cash; credit Accounts Payable
d. debit Accounts Receivable; credit Cash
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Q. 2) The FASB requires that a company using the indirect method must provide a reconciliation between net income and cash from operating activities.
Indicate whether the statement is true or false
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Q. 3) With the data replication strategy known as _____________________________
_ all data changes are data stamped and saved to secondary systems as the changes are happening.
Fill in the blank(s) with correct word
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Q. 4) Under U.S. GAAP, research and development costs (R&D) are ________.
A) capitalized and amortized
B) capitalized and depreciated
C) expensed when incurred
D) expensed when the related product is sold
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Q. 5) A customer returns merchandise that was delivered in poor condition and that does not meet specification. The account that the seller would debit for the amount of the return is
a. Sales Returns and Allowances.
b. Purchase Returns and Allowances.
c. Sales.
d. Purchases.
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Q. 6) Team Shirts purchased 5,000 worth of its own stock in the stock market. The transaction would _________ cash by 5,000 and _________ shareholders' equity by 5,000.
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase
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