Exam 2: Analyzing Business Transactions

Use this journal entry to answer the following question. Explain how the above journal entry relates to the measurement issues of (a)recognition,(b)valuation,and (c)classification.

If office equipment is sold at cost in exchange for a promissory note,

Payment on a portion of Accounts Payable will

Given the following ledger account and postings,complete the Balance column.Assume no previous postings in the account.

Office supplies become expenses

Another word for expense is debt.

Briefly explain the difference between Unearned Art Fees and Art Fees Earned.

The general journal does not have a column titled

Which of the following accounts might be used when there is a time delay between a transaction and its related cash flow?

The principal purpose of posting is to

The process of transferring journal entry information from the journal to the ledger is called

In a journal entry,the Post.Ref.column is always left blank.

The Post.Ref.column in the general journal is used to show that an amount has been posted to the ledger when which of the following is placed in it?

In accounting,to value means to record a transaction or event.

Revenues have a normal debit balance.

Generally,before Accounts Receivable is credited,it is debited.

Which of the following is not a measurement issue in accounting?

In a trial balance,accounts are listed in the order they appear on the financial statements.

When a business reports an asset at an inflated dollar amount,it has violated the measurement issue of

The accounts in a chart of accounts are normally listed in order of their account number.