Answered: 4. How many approaches accounting has?…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1PA: Identify whether each of the following accounts would be considered a permanent account (yes/no) and...

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How many approaches accounting has?

		(a) One
		(b) Two
		(c) Three
		(d) None

The process of recording financial data up to trial balance is ______

		Bookkeeping
		Classifying
		Summarizing
		Analyzing

An example of a contra-asset account is:

		Depreciation Expense.
		Accumulated Depreciation.
		Prepaid expenses.
		Unearned revenue.

Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle though cheque?

		(a) Vehicle account
		(b) Cash account
		(c) Business account
		(d) Bank account

Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000. The journal entry to record this transaction in the accounting records of the purchaser includes:

		A credit to Land for $40,000.
		A debit to Cash for $40,000.
		A debit to Land for $170,000.
		A debit to Note Payable for $130,000.

If the number of debit entries in an account is greater than the number of credit entries, the account will have a debit balance.

True

False

10.

The third (final) step in preparing the statement of cash flows is to

		analyze changes in noncurrent asset and liability accounts.
		compare the net change in cash with the change in the cash account reported on the balance sheet.
		determine net cash provided by operating activities.
		list the noncash activities.

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