Accounitng Help 10 pts?
1.Revenue should be recognized when:
a.cash is received.
b.the service is performed.
c.the customer places an order.
d.the customer charges an order.
2. Which statement(s) concerning cash is (are) true?
a. cash will always have more debits than credits.
b. cash will never have a credit balance.
c.cash is increased by debiting.
d. all of the above.
3.A debit may signify a(n):
a.decrease in asset accounts.
b.decrease in liability accounts.
c.increase in the capital account.
d.decrease in the drawing account.
4.The classification and normal balance of the accounts payable account is:
a.an asset with a credit balance.
b.a liability with a credit balance.
c.owner’s equity with a credit balance.
d.revenue with a credit balance.
2 Answers
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1.Revenue should be recognized when:
b.the service is performed.
2. Which statement(s) concerning cash is (are) true?
a. cash will always have more debits than credits (not true, when you operate on an overdraft the credits are larger)
b. cash will never have a credit balance (not true – see above)
c.cash is increased by debiting – TRUE
3.A debit may signify a(n):
b.decrease in liability accounts.
4.The classification and normal balance of the accounts payable account is:
b.a liability with a credit balance.
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bdcb
