• 2022-06-06
    A company purchase supplies £7,100 on credit. The two accounts affected by this transaction are the supplies account and the __________ account.
    A:
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      Which<br/>of the following situations would result in an increase in income<br/>under the accrual method of accounting, but would NOT result in an<br/>increase in income under the cash-basis method of accounting? ( ) A: Purchase<br/>of supplies for cash B: Use<br/>of supplies purchased earlier C: Performance<br/>of services on account D: Receipt of cash for services that were performed earlier on account

    • 1

      Matthew Company purchases a trading security for $12,000 cash. The journal entry to record this transaction will include a: A: debit to the Investment in Trading Securities account and a credit to Cash. B: debit to Cash and a credit to the Investment in Trading Securities account. C: debit to Long-term Investment and credit Cash. D: debit to Dividend Revenue and credit to Cash.

    • 2

      Your company purchased art supplies for $1,400 cash and office supplies for $700 cash from Rocklin Supply Company. The accounting clerk recorded the transaction as: Dr. Art Supplies $1,400 Cr. Cash $2,100

    • 3

      The payment of dividend by an American company to a foreign stockholder represents ( ). A: a debit in the S. capital account B: a credit in the current account C: a credit in the S. official reserve account D: a debit in the S. current account

    • 4

      The general journal provides a place for recording all of the following except____________. A: the transaction date B: the names of the accounts involved C: the amount of each debit and credit D: an explanation of the transaction E: the balance in each account