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

Q: The liability created by a business when it purchases Materials from its suppliers on credit is…

A: Journal entry passed on purchase of material on account: Date Accounts Debit Credit   Inventory…

Q: The accounts of customers who have not yet made payment for the goods or services are called: O a.…

A: Accounting indicates to a system which helps the corporation in identifying the daily…

Q: Which journal entries is correct when a business entity collects an accounts receivable? A. Cash -…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: is an amount earned by business in the process of selling goods. O a. Expenses O b. Accounts…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: Revenue is recorded when services have been performed or products have been delivered to customers.…

A: Introduction: Accounting Principals are created in order to increase the precision of financial data…

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: If a company debits Cash and credits Sales Revenue, it is recording the.

A: Real accounts are those assets and liabbilties whose balance is carried forward from one accounting…

Q: The entry to record collection of trade receivables under cash basis of accounting is*   debit to…

A: Following is the answer to the given question

Q: Which of the following accounts has a balance whereby credits normally exceed debits? Rent Expense…

A: Assets and Liabilities - Assets are the resources of the organization and Liabilities are the…

Q: The accounting treatment of a transfer fees by a bank is: a. An interest income b. An interest…

A: Introduction: Interest: Interest is the amount charged on the principle amount. Interest is…

Q: e traditional 4 C’s of credit analysis, which is the ability of a company to make payments on time?…

A: 4Cs of credit are Collateral, Covenant, Capacity and character.

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: what is the entry for purchase of supplies on account? * O debit supplies, credit cash O debit…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

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: What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Customer…

A:

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: What is an account receivable? O a. Sales O b. Asset O c. Income O d. Creditors

A: Following is the answer to the given question

Q: Which of the following entries records the payment of an account payable? a.debit Cash; credit…

A: Accounts payable (liability) is decreasing. Cash (asset) is decreasing.

Q: f we pay our suppliers for supplies that we had previously purchased, we will need to ____ Accounts…

A: "Accounts payable" (AP) is a general ledger account that reflects a company's obligation to pay a…

Q: The accounts receivable are sold to company known as a. Broker b. Factor c. Accounting service…

A: Factoring is a type of service offered by finance companies in which the entity or company sells all…

Q: The concept underlying the malching at Net income shouid be reported on an annua basis. a. b. All…

A: Accounting Principles- Accounting principles are the ideologies that are to be applied by a…

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: When recognizing revenue, a company has a performance obligation when it agrees to receives cash…

A: Solution: When recognizing revenue, a company has a performance obligation when it agrees to…

Q: Before paying an invoice for goods received on account, the controller or treasurershould ensure…

A: Treasurer or controller:

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

A: A. Bank overdraft is facility by the bank to borrow the amount of money B. Outstanding expenses is a…

Q: The current assets of FDN Company's Statement of Financial Position would have the following: Trade…

A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…

Q: The following source document is used to support the transactions related to returns outwards to…

A: The company is in constant interaction with its suppliers and customers and there are many…

Q: a. Debit Equipment and credit Cash. b. Debit Garcia, Withdrawals and credit Cash. c. Debit Wages…

A: Journal entries can be termed as process of recording various transactions in a chronological order.…

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: Which of the following entries is not one a firm would normally make? A)Debit cash, credit accounts…

A: Journal is a book of original entry in which all the financial transactions of the business are…

Q: The total credit equal to the total of debit in ledger account is called: O a. Credit balance O b.…

A: The ledger is prepared using journal entries.

Q: credit terms are terms for a. when the payments for merchandise are to be made b. when inventory is…

A: Credit terms refers to the agreement made between the seller and the buyer which defines the timing…

Q: when the company sold goods on account the A/P will be in the debit side O True O False

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: what is the entry for collection of receivable * O debit cash, credit accounts payable O debit cash,…

A: Account’s receivables can be defined as the payment which is yet to be received by the business in…

Q: Which of the following situations has to .5 ? do with account payable )2 نقطة( Sales on credit…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: In simpler terms, revenue is the inflow of cash or accounts receivable that a business receives when…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: What does the phrase "Revenue is recognized at the point of sale" mean? (Assume the company reports…

A: Accrual Basis of Accounting: The accrual basis of accounting is a method of accounting where the…

Q: When a company decides to extend credit to consumers, it is making an investment decision in: a.…

A: A company often decides to extend credit to consumers. The decision is made on the logic that credit…

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: Required Given that prudence is the main consideration, discuss under what circumstances, if any,…

A: Accrual Basis of accounting refers to the accounting, where the transactions are recorded as and…

Q: Eamings accumulated for purposes of making loans to suppliers are considered to be for the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: The journal entry to record the sale of services on credit should include: a debit to Cash and a…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…