Questions from Financial Accounting

Q: The effects of paying salaries for the current period are to:

The effects of paying salaries for the current period are to: a. increase assets and increase stockholders’ equity. b. increase assets and increase liabilities. c. decrease assets and decrease liabili...

Q: Which of the following statements is false? a. The

Which of the following statements is false? a. The left side of a T-account is called the credit side. b. All T-accounts have both a debit and a credit side. c. Transactions are frequently analyzed us...

Q: Which of the following statements are true? I. Debits

Which of the following statements are true? I. Debits represent decreases, and credits represent increases. II. Debits must always equal credits. III. Assets have normal debit balances while liabiliti...

Q: Debits will: a. increase assets, expenses, and

Debits will: a. increase assets, expenses, and dividends. b. decrease liabilities, revenues, and dividends. c. increase assets, liabilities, revenues, expenses, and dividends. d. decrease assets, liab...

Q: Which of the following statements are true? I. A

Which of the following statements are true? I. A journal provides a chronological record of a transaction. II. A journal entry contains the complete effect of a transaction. III. The first step in pre...

Q: Posting: a. involves transferring the information in journal entries

Posting: a. involves transferring the information in journal entries to the general ledger. b. is an optional step in the accounting cycle. c. is performed after a trial balance is prepared. d. involv...

Q: A trial balance: a. lists only revenue and expense

A trial balance: a. lists only revenue and expense accounts. b. lists all accounts and their balances. c. will help detect omitted journal entries. d. detects all errors that could be made during the...

Q: An analysis of the transactions of Canary Cola Inc. yields the

An analysis of the transactions of Canary Cola Inc. yields the following information: service revenue, $78,000; supplies expense, $33,200; rent expense, $20,500; and dividends, $7,000. Required: What...

Q: Luis Madero, after working for several years with a large public

Luis Madero, after working for several years with a large public accounting firm, decided to open his own accounting service. The business is operated as a corporation under the name Madero Accounting...

Q: The following T-accounts summarize the operations of Chen Construction Company

The following T-accounts summarize the operations of Chen Construction Company for July 2019. Required: 1. Assuming that only one transaction occurred on each day (beginning on July 2) and that no div...