9. Your company orders and receives supplies in January. pays for them in Februa
ID: 2333589 • Letter: 9
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9. Your company orders and receives supplies in January. pays for them in February, provides services A expenses B. expenses are recorded in February and revenues are recorded in March. that use those goods up in March and is paid by customers in April. Using are recorded in February and revenues are recorded in April. the accrual basis of accounting C. expenses and revenues are recorded in March. D. expenses are recorded in January and revenues are recorded in April. 160. Which of the following is not true concerning requirements of when a company should recognize A. When delivery has occurred or services have been provided (rendered) B. When the price is fixed or determinable. C. When there is persuasive evidence of an arrangement for customer payment and collection is reasonably assured D. When cash has been received for services rendered. 161. Galvan Corporation (GC) capitalized a $20,000 automobile. Which of the following is true? A. GC recorded a liability for $20,000. B. GC recorded an asset for $20,000. C. GC recorded an expense for $20,000. D. GC recorded Contributed Capital for $20,000. 162. A customer purchased $1,500 of services on credit two months ago and has just paid the bill. The receipt of the payment from the customer is recorded as a A. debit to Cash and a credit to Accounts Receivable. B. debit to Cash and a credit to Accounts Payable. C. debit to Expenses and a credit to Revenue. D. debit to Accounts Receivable and a credit to Retained Earnings 163. Which of the following is a true statement? A. Revenue account s are a subset of assets, and expense accounts are a subset of liabilities B. Both revenue accounts and expense accounts are subsets of contributed capital. C. Both revenue accounts and expense accounts are subsets of retained expense accounts are a subset of accounts payable. D. Revenue accounts are a subset of cash, and 164. If a company provides a service and receives payment at the same time: A. more than one journal entry is needed. B. Cash will be credited. C. a revenue account will be increased with a debit. D. stockholders' equity will increase. 165. In October, your company prepays rent of $7,000 for November and December. Which of the following describes the effects of this transaction in October? A. Assets decrease $7,000 and liabilities decrease $7,000. B. Assets increase $7,000 and stockholders' equity increases $7,000. C. There is no change to total assets, liabilities or stockholders' equity. D. Liabilities decrease $7,000 and stockholders' equity increases $7,000.Explanation / Answer
159 Using the Accrual basis of accounting expenses and revenues are recorded in March 160 When cash has been received for services rendered is not true concerning requirements when company should recognize revenue 161 GC recorded an asset for $20000 162 Debit to Cash and a credit to Accounts Receivable 163 Both revenue accounts and expense accounts are subset of retained earnings. 164 Stcokholders' equity will increase 165 There is no change to total assets,liabilities or stockholders'equity
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