A customer?s promise to pay in the future for services or goods sold is called a(n) ________.
A) Unearned Revenue
B) Accounts Receivable
C) Notes Payable
D) Accounts Payable
Accounts Receivable
A customer?s promise to pay in the future for services or goods sold is called a(n) ________.
A) Accounts Payable
B) Unearned Revenue
C) Accounts Receivable
D) Notes Payable
C) Accounts Receivable
A liability created when a business receives cash from customers in advance of providing services or delivering goods is called a(n) ________.
A) unearned revenue
B) service revenue
C) notes receivable
D) accrued liability
A) unearned revenue
Saturn Company paid the rent for the current month in cash. Which of the following accounts will be used to record the transaction?
A) Prepaid Rent
B) Rent Revenue
C) Rent Payable
D) Rent Expense
D) Rent Expense
Amounts earned from delivering goods or services to customers are called ________.
A) notes receivable
B) unearned revenues
C) revenues
D) withdrawals
C) revenues
Which of the following is the record holding all the accounts, the changes in those accounts, and their balances?
A) Source document
B) Trial balance
C) Ledger
D) Journal
C) Ledger
Which one of the following account groups normally has a debit balance?
A) revenues and expenses
B) assets and expenses
C) assets and liabilities
D) liabilities and revenues
B) assets and expenses
Transactions are first recorded in a ________.
A) trial balance
B) chart of accounts
C) journal
D) ledger
C) journal
Posting a transaction means ________.
A) calculating the balance in an account
B) preparing a summary of account balances
C) transferring data from the journal to the ledger
D) finding the account number in the chart of accounts
C) transferring data from the journal to the ledger
Which of the following sequences is the normal sequence of flow of accounting data?
A) Journal ? Source document ? Ledger
B) Source document ? Journal ? Ledger
C) Source document ? Ledger ? Journal
D) Ledger ? Journal ? Source document
B) Source document ? Journal ? Ledger
A business purchases equipment with $8,000 cash. Which of the following accounts is credited?
A) Cash
B) Equipment
C) Accounts Payable
D) Smith, Capital
A) Cash
A business performs services for a customer for $26,000 on account. Which of the following accounts is debited?
A) Cash
B) Accounts Receivable
C) Service Revenue
D) Accounts Payable
B) Accounts Receivable
A business performs services for $26,000 and collects cash from the customer. Which of the following accounts will be debited?
A) Cash
B) Accounts Receivable
C) Service Revenue
D) Accounts Payable
A) Cash
A business makes a payment in cash for advertising expense. Which of the following accounts is credited?
A) Prepaid Advertising
B) Cash
C) Accounts Receivable
D) Advertising Expense
B) Cash