BAF 3M 🏁 Ch. 5 RETAKE A - Brittany Goldsborough | Laabri

Complete the formative and don't forget to go over to the Google Sheet for the second part of this assignment!

There are three parts to this formative:

Part 1: Multiple Choice

Part 2: Debit or Credit?

Part 3: Transaction Analysis

"Part 4" is the Google Sheet Spreadsheet.

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H. Hyland, the owner of Sparkling Dry Cleaners, submitted an invoice received from Speedy Auto Service for repairs to his wife’s car. He has instructed you to issue a cheque in full payment of the account. The correct entry is

debit Automobile; credit Bank.

debit Car Expense; credit Bank.

debit Car Expense; credit H. Hyland, Drawings.

debit H. Hyland, Drawings; credit Bank.

debit Car Expense: credit Accounts Payable.

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Which of the following would not be correct in the heading of an income statement?

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The fiscal period is usually...

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The income statement will

indicate to the owner the cash position of the business.

be used to determine the amount of income tax the business must pay.

tell bankers if the business is in a good position to pay its bills.

reveal the amount of money withdrawn by the owner.

Two of the above are true.

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The Fees Earned figure could include

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The fiscal year-end for a business is December 31, 20–1. On December 28, 20–1, the business pays the rent for January 20–2, and the accounting clerk debits Rent Expense and credits Bank. Which accounting standard has been violated?

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What is the correct journal entry for when cash services are performed?

Accounts Receivable is debited, Fees Earned is credited.

Cash is debited, Fees Earned is credited.

Cash is debited, Accounts Receivable is credited.

Fees Earned is debited, Cash is credited.

None of the above.

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During the lifetime of a business, accountants produce financial statements at specific points in time in accordance with which basic accounting concept?

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The expanded ledger is useful because

it makes it easier to calculate the trial balance.

it matches more closely with the income statement.

it follows the matching principle.

it makes it easier to evaluate the effectiveness of a business.

All of the above are true.

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The number of the Interest Revenue account is in the...

Indicate which accounts you would debit and credit for the following transactions for Splinters Building Supplies. Write complete account titles. Use Fees Earned for revenue transactions.

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