Question 1

Which of the following statements is correct? 54)

Accepted Answer

A) Goods and services are commonly sold to customers on the basis of oral or implied promises of future payment, called promissory notes. 
B) Increases and decreases in cash are always recorded in the equity account. 
C) An account called Land is commonly used to record increases and decreases in the land and buildings owned by a business. 
D) When an insurance premium is paid in advance, the payment is normally recorded in a liability account called Prepaid Insurance. 
E) None of these statements are correct. 
A) Goods and services are commonly sold to customers on the basis of oral or implied promises of future payment, called promissory notes. 
B) Increases and decreases in cash are always recorded in the equity account. 
C) An account called Land is commonly used to record increases and decreases in the land and buildings owned by a business. 
D) When an insurance premium is paid in advance, the payment is normally recorded in a liability account called Prepaid Insurance. 
E) None of these statements are correct.

Question 2

The following T-accounts reflect the correct posting of a journal entry on January 9,2017 by Bailey Company:   What transaction is represented by the posting?

Accepted Answer

A) Bailey sold inventory to a customer for $10,000 on credit. 
B) Bailey bought supplies on credit from a supplier for $10,000 on credit. 
C) Bailey received $10,000 from a customer in payment of his account. 
D) Bailey paid a supplier $10,000 cash to pay down the amount owing on their account. 
E) Bailey bought supplies from a supplier for $10,000 cash. 
A) Bailey sold inventory to a customer for $10,000 on credit. 
B) Bailey bought supplies on credit from a supplier for $10,000 on credit. 
C) Bailey received $10,000 from a customer in payment of his account. 
D) Bailey paid a supplier $10,000 cash to pay down the amount owing on their account. 
E) Bailey bought supplies from a supplier for $10,000 cash.

Which of the following statements is correct? 54)

The following T-accounts reflect the correct posting of a journal entry on January 9,2017 by Bailey Company: What transaction is represented by the posting?

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 2: Analyzing and Recording Transactions

Which of the following statements is correct? 54)

The following T-accounts reflect the correct posting of a journal entry on January 9,2017 by Bailey Company: What transaction is represented by the posting?

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters