A debit to Accounts Receivable for 50 and a credit to Cash for 50 would be an accurate journal entry to record
a. electronic funds transfers (EFTs).
b. not sufficient funds (NSF) checks.
c. petty cash.
d. ATM deposits.
(
Q. 2) For the month of June, Team Shirts, Inc., received 6,000 in contributed capital, 3,000 in sales revenue, paid 2,000 in expenses, and 500 in dividends. Its net income was ________.
A) 9,000
B) 7,000
C) 1,000
D) 500
(
Q. 3) Which of the following accounts will only be found in the chart of accounts of a merchandising company?
a. Sales
b. Accounts Receivable
c. Merchandise Inventory
d. Accounts Payable
(
Q. 4) Salaries payable on the balance sheet most likely means that ________.
A) the company is in serious financial difficulty. It doesn't even have enough cash to pay its employees
B) the company's accountants are seriously confused. Salaries appear on the income statement, not on the balance sheet
C) employees did not receive payment for the last few days of work because the last day of the accounting period was not a payday
D) employees were overpaid and now owe the company money
(
Q. 5) Events that could have a negative impact on organizational objectives:
a. opportunities
b. embezzlement
c. fraud
d. risks
(
Q. 6) Team Shirts purchased 2,000 worth of T-shirts from a company in Guatemala. Team Shirts recorded the value of the transaction in U.S. dollars. Which accounting rule applies to this situation?
A) monetary-unit assumption
B) consistency
C) relevance
D) full-disclosure principle
Quick Reply
