t is an amount owed to suppliers for goods purchased or services performed on credit. a. Outstanding expenses b. Accounts payable c. Unearned revenues d. Bank overdrafts

Q: Which of these transactions requires a debit entry to Cash?A. paid balance due to suppliersB. sold…

A: Cash is one of the asset held by the business, for which normal balance is debit balance. Any…

Q: Tell whether each of the following accounts is part of net sales, cost of goods sold, operating…

A: Explanation- All are in different different account according to their nature.Here is the nature of…

Q: When the seller advances the transportation costs and the terms of sale are FOB shipping point, the…

A: FOB shipping point - Under FOB Shipping term of sale the purchaser have to bear the cost of…

Q: Sales revenues are usually considered earned when Select one: a. goods have been transferred from…

A: Definition: Sales Revenue: Sales Revenue is considered as the income received from the sale of the…

Q: Under accrual accounting, when should a company that sells merchandise to customers recognize…

A: Accrual basis: It is one of the methods of basis of accounting that records the transactions basing…

Q: When a product is sold on credit, which account should be debited for the seller? A.cash…

A: Sale of a product means to sell the goods in stock to the customer. It can be sold either on cash or…

Q: which of the following transactions will result in the increase and decrease in liability? a.…

A: Liability is increased when the amount is borrowed when the liability is paid it is decreased by…

Q: Which of the following statements is correct? Group of answer choices A)Revenue is recognized at the…

A: A)Revenue is recognized at the time of shipment when goods are shipped FOB destination-The given…

Q: Which of the following is an example of Expense of a Merchandise Business? a. Salary and Wages paid…

A: Introduction: Expense: Amount spent on for running the day to day activities of the business called…

Q: All of the following are nominal accounts except Prepaid Expense Cost of Goods Sold Interest…

A: Solution: Nominal accounts are those account which are related to revenue, expense, gain or loss…

Q: When a company extends credit directly to a customer for a purchase, the sale is recorded as a debit…

A: Customer record: It is the record of customers of company which contains details like name, address,…

Q: Under the realization principle, revenue from sale of products is recognized a. At date of delivery…

A: Recognition of Revenue - Recognition of Revenue is the recording of revenue in the financial year.…

Q: Which of the following is an amount for products or services purchased on account? A)accounts…

A: Account payable is the account related to products or services purchased on account. Unearned…

Q: When should revenue from the sale of merchandise normally be recognized? (Assume the company reports…

A: The revenue should be recognized in the following conditions. 1.When the amount realized or received…

Q: Which of the following is NOT a financial transaction? a. purchase of products b. cash receipts c.…

A:

Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…

A: Answer: b. When inventory is delivered to a customer

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid? a.…

A: Accounting can be done in  both cash and accrual method

Q: The amount to be paid by the business to the supplier who supplied the material on credit is a.…

A: When Company purchased goods and services on credit from the supplier then it needs to be paid back…

Q: Which of the following is an example of revenue or expense to be recognized in the current period’s…

A: Income statement forms a part of financial statements and is prepared with a view to show the net…

Q: Which of the following cannot be considered an expense for the business? O Cost of goods sold O…

A: Expenses of the business means all expenditures that are made in routine day to day activities of…

Q: The Purchases account in a general ledger: O a. is an asset account. O b. appears on the income…

A: Account: It can be defined as a record in the general ledger that is used by the business to sort…

Q: Preliminary course. Classify each of the following accounts as an asset, liability, equity, revenue…

A: let's understand some basics Expenses= An expense is the cost of operations that a company incurs to…

Q: The journal entry to record the sale of services on credit should include:(a) Debit to debtors and…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Instructions: Classify each transaction whether they are operating, financing or investing. After…

A: Transactions will be classified under 3 major heads, Operating activity, Investing activity and…

Q: Using the double entry system together with the accounting equation, determine what is debits and…

A: Accounting equation of business has three important elements. These are assets, liabilities and…

Q: The accounts receivable are sold to company known as a. Commission agent b. Accounting service…

A: Factoring is a financial transaction and a type of debtor finance in which a business sells its…

Q: Which of the following entries for goods sold by cash is correct? a) Cash Dr, AR Cr b) AR Dr,…

A: Goods or services provided by the business can be sold for cash or on account. Cash sales are sales…

Q: Under accrual accounting: Group of answer choices a)Revenue cannot be recognized until cash is…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: A credit balance to a client's accounts payable account representing right to receive payment for…

A:

Q: When recognizing revenue, a company has a performance obligation when it agrees to a. perform a…

A: A performance obligation is satisfied when the company delivered goods or performed services to…

Q: When a customer pays in advance for products or services, which of the following accounts is…

A: We have the following question: When a customer pays in advance for products or services, which of…

Q: The accounts of customers who have not yet made payment for the goods or services provided by the…

A: The payment that is not paid yet by the customers, is called an asset for the business.

Q: Revenue is earned when ​ ________.   A. the business has received cash from the customer   B. the…

A: The revenue recognition concept says that the business should recognize the revenue when the…

Q: It is the amount collected by the business in advance from the customers before the business…

A: Under the accrual basis of accounting business transactions are recorded in books of accounts as and…

Q: ce revenue that are not yet received in cash are recorded as follows: Group of answer choices Debit…

A:

Q: When a payment is made to a supplier for goods previously purchased on account, the debit is to an…

A: Solution:- Discussion of clarification regarding payment is made to a supplier for goods previously…

Q: Identify whether each of the following transactions, which are related to revenue recognition, are…

A: Revenue recognition principle says that revenue should be recognised in business when it is earned.…

Q: THE AC AFFECTE Instructions: Identify the ACCOUNTS TITTLES that are affected by the transactions…

A: Solution: Given problem have a list of transactions and we have to write account title affected in…

Q: Which of these transactions requires a credit entry to Revenue? A. received cash from services…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Which of the following needs an adjustment to the accounts receivable account of AB Company? a. a…

A: The freight cost  is paid by the seller till the goods have reached their destination and then the…

Q: COVID Company recognizes revenue in the period in which the account receivable is collected in cash,…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: The accountant for Tom's Tax Preparation, Inc. recorded a transaction by debiting Accounts Payable…

A: The question is based on the concept of business accounting.

Q: The account that appears in the chart of accounts for a merchandising entity but not for service…

A: Merchandise Entity - In this type of entity corporation is mainly generate revenue through sale of…

Q: Which of the following accounts has a normal debit balance? A. Interest Revenue B. Inventory C.…

A: All assets and expense accounts normally have debit balance. All liabilities and incomes would…

Q: hen the seller advances the transportation costs and the terms of sale are FOB shipping point, the…

A: Solution: When the seller advances the transportation costs and the terms of sale are FOB shipping…