(Solved): The basic rule of double-entry bookkeeping is that debits must always equal credits for every tran ...

The basic rule of double-entry bookkeeping is that debits must always equal credits for every transaction. False Tru? Question 5 What type of account is unearned revenue? Reverue Liability Asset Equity Expense Question 6 Which of the following accounts decreases with a debit? Question 7 Which of the following maintains the monetary balance for each of the accounts reported by an oreanization with a left lclebiti side and a right (crediti side used to show increases and decreases? Balance sheet Journal T-account Trial balance Income statement Landon Compary purchased a builtling for \( \$ 787,000 \) cash. Which of the following is the journal entry recorded by Landon? Question 9 The two components of accrual acceunting are: the manetary unit concept and the entity eancept. the periodicity principle and the continuity principle. the lawer-bf-cost-or-market and the principle of full disclasure. the revenue realuation principle and the matching principle. the historical cost concept and the principle of prudence. Question 10 Oribn Inc made cash payment on its rent payable. To record this, Oripn should bebit rent payable and credit rent expense. Question 11 Which of the following accounts increases with a credit? Expense Retained Earrings Loss Asset Cividends Paid Only small organizations use the double-entry bockkeeping system. True False Question 13 An incrense in a liability is recorded with a crentit. Question 14 Coastal Comoration pays salaries of \( \$ 30000 \) to its employees. No accrual has been made for this amount What is the financial impact of this transaction in terms of increases and decreases? Increase Salary Expense; Decrease Salary Payable Increase Prepaid Salary; Decrease Cash Increase Cash; Decrease 5alary Payable Increase Salary Experisa; Decrease Cash 5alary Payable Salary Expense Question 15 Recorting the purchase of invertory on account would involve: a debit to expensa and a credit to asset. a debit to liability and a credit to liability a debit to asset and a credit to asset. a dubit to liability and a creedit to asset. a dobit to assct and a credit to liakility Accounts Receivable is understated. Cash is owrstated. Accounts Payable is corrcctly stated. Cash is correctly stated. Accounts Payable is understated. Question 17 Flanders Company sells capial stock of \( \$ 4.500 \). Which of the followine correctly identifies the accounts and their movements for this transaction? Cash increascs by \( \$ 4,500 ; \) Capital Stock increases by \( \$ 4,500 \) Cash increases by \( \$ 4,500 \); Note Payable increases by \( \$ 4,500 \). Eapital Stock decreases by \( \$ 4,500 ; \) Note Parable increases by \( \$ 4,500 . \) Cash decreases by \( \$ 4,500 \), Capital Stock decreases by \( \{4,500 \). Cash increases by \( \$ 4,500 \); Capital Stock decreases by \( \$ 4,500 \). Qucstion 18 Which of the following transactions would have no effect on the amount of total assets? Distriauting dividends to shareholders Acquiring assets for cash Issuing capital stock Receiving cash from customers before deliverine the services Payine salary to employees Question 19 Borrawing money fram a bank will result in: decrease in accounts receivable. increase in equipmerit. increase in cash. decrease in investments. docrease in notes payable. Isis Corporation issues capital stock for cash, Isis'liakilities are not affected by this transaction. True Falso Question 21 Purchase of inventory on account should be recorded with a debit to lmventory and a credit to Accounts Payable. Question 22 Question 23 Which of the following says that expenses should be reported in the same period with the revenues they help generate? The conservatism principle Double entry bookloeping The Periodic principle The matching principle The resenue recognition principle Question 24 Mark Corporation issues awnership shares to new shareholders for \( \$ 100 \) co0 cash. Capital stack will decrease by \( \$ 100,000 \) as a result of this transaction. False True A current listing of all account balances found in the ledger is known as a trial balance. False True