Questions from College Accounting

Q: What two measures are used to determine whether a firm has sufficient

What two measures are used to determine whether a firm has sufficient capital to operate and whether the firm has the ability to pay its debts?

Q: You are an owner/bookkeeper in a country whose economy has

You are an owner/bookkeeper in a country whose economy has been nearly destroyed. Goods are scarce. In fact, you have no goods to sell at the start of each day. You go out early each morning to purcha...

Q: Marty is an accountant. Sometimes printouts of financial statements contain errors

Marty is an accountant. Sometimes printouts of financial statements contain errors, making the financial statements unusable. Marty doesn’t like to waste anything, so he takes the unusable financial s...

Q: a. What does a debit balance in Cash Short and Over

a. What does a debit balance in Cash Short and Over mean? b. Where does a debit balance in Cash Short and Over appear in the financial statements? c. What does a credit balance in Cash Short and Over...

Q: When would revenue and expenses be recorded if a business used the

When would revenue and expenses be recorded if a business used the cash basis of accounting? If a business used the accrual basis of accounting?

Q: Place a check mark in the column that indicates the location of

Place a check mark in the column that indicates the location of each item that would be found on a bank reconciliation. Assume that the checks written by the company are written correctly.

Q: Indicate with an X whether each of the following would appear on

Indicate with an X whether each of the following would appear on the income statement, statement of owner’s equity, or balance sheet. An item may appear on more than one statement. T...

Q: At the end of the day, the cash register tape lists

At the end of the day, the cash register tape lists $881.40 as total income from services. Cash on hand consists of $18.25 in coins, $433.60 in currency, $100.00 in traveler’s checks, and $427.00 in c...

Q: Number in order the following steps in the accounting cycle:

Number in order the following steps in the accounting cycle: a. Prepare a trial balance. b. Post journal entries to the accounts in the ledger. c. Journalize and post the adjusting entries from the da...

Q: Prepare a statement of owner’s equity for The Lindal Clinic for the

Prepare a statement of owner’s equity for The Lindal Clinic for the year ended December 31. P. Lindal’s capital amount on January 1 was $124,000, and there was an additional investment of $7,000 on Ma...