Questions from Financial Accounting

Q: If the credit to record the payment of an account payable is

If the credit to record the payment of an account payable is not posted, a. Expenses will be understated. b. Liabilities will be understated. c. Cash will be understated. d. Cash will be overstated.

Q: Which statement is false? a. A trial balance lists

Which statement is false? a. A trial balance lists all the accounts with their current balances. b. A trial balance can be taken at any time. c. A trial balance can verify the equality of debits and c...

Q: A business’s receipt of a $105,000 building, with

A business’s receipt of a $105,000 building, with a $90,000 mortgage payable, and issuanceof $15,000 of common stock will a. Increase stockholders’ equity by $15,000. b. Increase assets by $15,000. c....

Q: Lakeland Clothiers reported the following amounts in its 2013 financial statements.

Lakeland Clothiers reported the following amounts in its 2013 financial statements. The 2012 amounts are given for comparison. Requirements 1. Compute Lakeland’s quick (acid-test)...

Q: Name some users of accounting information.

Name some users of accounting information.

Q: Identify each of the following as relating to (a)

Identify each of the following as relating to (a) The control environment, (b) Control procedures, or (c) Information and communication: 1. Organizational structure 2. Report of company’s conformity w...

Q: Who bears the freight when the terms of sale are (

Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?

Q: Name four accounts that would normally appear in the chart of accounts

Name four accounts that would normally appear in the chart of accounts of a merchandising business but would not appear in the chart of accounts of a service business.

Q: Audio Outfitter Inc., which uses a perpetual inventory system, experienced

Audio Outfitter Inc., which uses a perpetual inventory system, experienced a normal inventory shrinkage of $13,675. What accounts would be debited and credited to record the adjustment for the invento...

Q: Assume that Audio Outfitter Inc. in Discussion Question 9 experienced an

Assume that Audio Outfitter Inc. in Discussion Question 9 experienced an abnormal inventory shrinkage of $98,600. Audio Outfitter Inc. has decided to record the abnormal inventory shrinkage so that it...