Review each event below and determine what would likely be the type of items exchanged in the transaction an select them from the corresponding drop down box If a company obtained a bank, it would record that it received in exchange If a company purchased equipment, it would record that it received in exchange If a company paid for utilities used, it would record for service used in exchange

Review each event below and determine what would likely be the type of items exchanged in the transaction an select them from the corresponding drop down box If a company obtained a bank, it would record that it received in exchange If a company purchased equipment, it would record that it received in exchange If a company paid for utilities used, it would record for service used in exchange

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter4: Journalizing And Posting Transactions

Section: Chapter Questions

Problem 2RQ: Name a source document that provides information about each of the following types of business...

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Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. sold goods to customers on credit B. collected cash from customer accounts C. sold goods to customers for cash D. collected cash in advance for goods to be delivered later
Name a source document that provides information about each of the following types of business transactions: a. Cash payment b. Cash receipt c. Sale of goods or services d. Purchase of goods or services
What specific accounts are recognized when a business purchases equipment on credit?
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction. A. Sold inventory for cash B. Issued common stock for cash C. Received and paid utility bill D. Bought office equipment on account E. Accrued interest on a loan at the end of the accounting period F. Paid a loan payment G. Bought inventory on account H. Paid employees I. Sold inventory on account J. Paid monthly insurance bill
Which of these transactions requires a debit entry to Cash? A. paid balance due to suppliers B. sold merchandise on account C. collected balance due from customers D. purchased supplies for cash
From the following list, identify which items are considered original sources: A. accounts receivable B. receipt from post office for post office box C. purchase order D. general ledger E. adjusted trial balance F. statement of retained earnings G. electric bill H. packing slip I. company expense account J. statement of cash flows
When a company collects cash from customers before performing the contracted service, what is the impact, and how should it be recorded?
Which of the following transaction will be correct in regards to Source document of a Business? a. cash received from customer will be recorded in cash disbursement journal b. Credit Purchase will be recorded in Purchase day book c. Cash paid to supplier will be recorded in a cash receipt journal d. Goods returned to supplier will be recorded in sales journal
Which of the following best describes an application of the entity concept? Group of answer choices Property is exchanged with another business for services received. Transactions are valued in terms of the currency of the business’s country. A sales transaction is recorded from the customer sales order. An owner uses their personal checking account to buy milk at the grocery store. It is not included in the accounting records of the business. A transaction is recorded based on the dollars exchanged at the time of the transaction.
The accountant of South Boot Company recorded a transaction by debiting Accounts Payable and crediting Cash. Which of the following transactions did the accountant record? Group of answer choices A. The purchase of goods or services on account. B. Payment to suppliers for goods or services previously purchased on account. C. Investment of cash by the owner. D. Receipt of payment for goods or services previously supplied to customers on account.
What does the phrase "Revenue is recognized at the point of sale" mean? (Assume the company reports using ASPE.) a.Revenue is recorded in the accounting records when the goods are sold to a customer and reported on the statement of earnings when the cash payment is received from the customer. b.Revenue is recorded in the accounting records and reported on the statement of earnings when the cash is received from the customer. c.Revenue is recorded in the accounting records when the cash is received from a customer and reported on the statement of earnings when sold to the customer. d.Revenue is recorded in the accounting records and reported on the statement of earnings when goods are sold and delivered to a customer.
What is the main purpose of accounts receivable in factoring? a. To meet immediate cash needs of the business b. To create an additional guarantee of collection c. To invest accounts receivable in another business d. To establish a legal proof for future use