Q&A Hero

Q: On February 5, Textron Stores purchased a van that had a cost of $35,000. The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance. Show the general journal entry to record this transaction.

Q: On December 3, the Matador Company paid $5,400 cash in salaries to office personnel. Prepare the general journal entry to record this transaction.

Q: A business paid a $100 cash dividend. Assume the company had a $2,000 balance in cash immediately prior to this transaction and that this was the first time dividends had ever been paid. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts. Show ending account balances.

Q: A company paid $2,500 cash to satisfy a previously recorded account payable, the only liability on the books. Assume the company had a $4,000 balance in Cash immediately prior to this transaction. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts. Show ending account balances.

Q: A company sends a $1,500 bill to a customer for delivery services rendered. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Q: Dolly Barton began Barton Office Services in October and during the month completed the following transactions: a. Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock. b. Paid $500 cash for an insurance premium covering the next 12 months. c. Completed a word processing assignment for a customer and collected $1,000 cash. d. Paid $200 cash for office supplies. e. Paid $2,000 for October's rent. Prepare journal entries to record the above transactions. Explanations are unnecessary.

Q: The following is a list of accounts and identification letters A through J for Shannon Management Co.: A. Common Stock F. Prepaid Rent B. Interest Payable G. Advertising Expense C. Land H. Unearned Rent Revenue D. Dividends I. Commissions Earned E. Fees Earned J. Notes Receivable Use the form below to identify the type of account and its normal balance. The first item is filled in as an example. Type of Account Normal Balance Asset Liability Equity Debit Credit A. X X B. C. D. E. F. G. H. I. J.

Q: Indicate whether a debit or credit entry would be made to record the following changes in each account: a. To decrease Cash. b. To increase Common Stock. c. To decrease Accounts Payable. d. To increase Salaries Expense. e. To decrease Supplies. f. To increase Revenue. g. To decrease Accounts Receivable. h. To increase Retained Earnings.

Q: Identify which of the following items would likely serve as a source document by marking an X in the appropriate column. The first one is done as an example. Yes No Ex. Credit card X a. Credit card receipt b. Purchase order c. Invoice d. Balance sheet e. Bank statement f. Journal entry g. Electric power bill h. Employee earnings record

Q: Misa Chien and Jennifer Green founded Nom Nom Truck. What are some accounting challenges they faced when starting their business?

Q: Explain the debt ratio and its use in analyzing a company's financial condition.

Q: Explain debits and credits and their role in the accounting system.

Q: Explain the difference between a general ledger and a chart of accounts.

Q: Explain how accounts are used in recording information about transactions.

Q: Describe source documents and their purpose.

Q: Which financial statements are prepared for a period of time? A. Income statement, statement of retained earnings, balance sheet and statement of cash flows. B. Balance sheet. C. Income statement, statement of retained earnings, and statement of cash flows. D. Income statement and balance sheet. E. Statement of retained earnings and statement of cash flows.

Q: Which of the following items would appear on the balance sheet? Common stock$120,000 Accounts payable...$25,000 Cash.$116,640 Accounts receivable..$22,450 Supplies $ 1,500 Office equipment...$23,300 Prepaid rent....$ 3,200 Unearned revenue.$ 4,152 Service revenue..... $ 20,000 Utilities expense....$ 422 Retained earnings...$ 30,000 Shaving equipment$31,640 A. Common stock, service revenue, retained earnings, accounts payable, and unearned revenue. B. Cash, supplies, prepaid rent, accounts receivable, office equipment, utilities expense, and shaving equipment. C. Common stock, cash, supplies, prepaid rent, retained earnings, accounts payable, accounts receivable, office equipment, unearned revenue, and shaving equipment. D. Service revenue and utilities expense. E. Service revenue, unearned revenue, and utilities expense.

Q: Which of the following items would appear on the income statement? Common stock$120,000 Accounts payable...$25,000 Cash.$116,640 Accounts receivable..$22,450 Supplies $ 1,500 Office equipment...$23,300 Prepaid rent....$ 3,200 Unearned revenue.$ 4,152 Service revenue..... $ 20,000 Utilities expense....$ 422 Retained earnings...$ 30,000 Shaving equipment$31,640 A. Common stock, service revenue, retained earnings, accounts payable, and unearned revenue. B. Cash, supplies, prepaid rent, accounts receivable, office equipment, utilities expense, and shaving equipment. C. Common stock, cash, supplies, prepaid rent, retained earnings, accounts payable, accounts receivable, office equipment, unearned revenue, and shaving equipment. D. Service revenue and utilities expense. E. Service revenue, unearned revenue, and utilities expense.

Q: What would be the appropriate entry for the following transaction? Bill Co. performed $5,200 in consulting services on account. A. Credit to Cash, debit to Accounts Receivable. B. Debit to Service Revenue, debit to Cash. C. Debit to Accounts Receivable, credit to Cash. D. Debit to Service Revenue, credit to Cash. E. Debit to Accounts Receivable, credit to Service Revenue.

Q: Compute net income for May based on the following transactions: May 1 paid $2,200 for Mays rent. May 14 paid $1,200 for two weeks wages. May 15 performed $5,200 in consulting services on account. May 17 billed a customer $1,500 for services performed May 16. May 20 received $5,200 in payment for May 15 transaction. May 22 performed services and immediately collected $2,000. May 31 paid $500 for advertising in the local paper to take place in June. A. $10,200 B. $ 5,300 C. $ 8,700 D. $13,900 E. $ 7,000

Q: What is total debits on this trial balance? Common stock.$120,000 Accounts payable...$25,000 Cash..$116,640 Accounts receivable.. $22,450 Supplies........$ 1,500 Office equipment...$23,300 Prepaid rent. $ 3,200 Unearned revenue. $ 4,152 Service revenue... $ 20,000 Utilities expense....$ 422 Beginning Shaving equipment$31,640 retained earnings. $ 30,000 A. $291,340 B. $106,964 C. $199,152 D. $193,390 E. $203.152

Q: Given the trial balance amounts below, compute net income. Common stock. $120,000 Accounts payable...$25,000 Cash.. $116,640 Accounts receivable.. $22,450 Supplies........ $ 1,500 Office equipment... $23,300 Prepaid rent. $ 3,200 Unearned revenue. $ 4,152 Service revenue... $ 20,000 Utilities expense.... $ 422 Beginning Shaving equipment $31,640 retained earnings. $ 30,000 A. $19,578 B. $20,528 C. $23,728 D. $49,578 E. $24,578

Q: Given the trial balance amounts below, compute ending retained earnings. Common stock.$120,000 Accounts payable... $25,000 Cash..$116,640 Accounts receivable. $22,450 Supplies........$ 1,500 Office equipment... $23,300 Prepaid rent. $ 3,200 Unearned revenue. $ 4,152 Service revenue... $ 20,000 Utilities expense.... $ 422 Beginning Shaving equipment $31,640 retained earnings.. $ 30,000 A. $19,578 B. $29,578 C. $23,728 D. $49,578 E. $45,000

Q: What are the total assets shown on the trial balance below? Common stock$120,000 Accounts payable...$25,000 Cash.$116,640 Accounts receivable.. $22,450 Supplies $ 1,500 Office equipment...$23,300 Prepaid rent.... $ 3,200 Unearned revenue. $ 4,152 Service revenue..... $ 20,000 Utilities expense.... $ 422 Retained earnings... $ 30,000 Shaving equipment $31,640 A. $291,340 B. $106,962 C. $198,730 D. $218,730 E. $221,580

Q: According to IFRS, comparative information on financial statements is: A. Not required. B. Required for publicly traded companies only. C. Required for the preceding period only. D. Required for the last five years. E. Not required, but considered a hallmark for companies of excellence.

Q: Which of the following is a TRUE statement concerning a company's financial statements? A. Balance sheet and income statement data combined contain the complete financial picture of a given company. B. A trial balance is another name for a balance sheet. C. Another name for the income statement is the earnings statement. D. Dividends paid to a company's shareholders are shown on the income statement. E. The balance sheet shows the financial position of a company for a period of time.

Q: Which of the following accounts is a balance sheet account? A. Wages Payable B. Operating Activities C. Revenues D. Dividends E. Expenses

Q: A $130 credit to Office Equipment was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error? A. Office Equipment, understated $130; Fees Earned, overstated $130. B. Office Equipment, understated $260; Fees Earned, overstated $130. C. Office Equipment, overstated $130; Fees Earned, overstated $130. D. Office Equipment, overstated $130; Fees Earned, understated $130. E. Office Equipment, overstated $260; Fees Earned, understated $130.

Q: Of the following errors, which one will cause the trial balance to be out of balance? A. A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense. B. A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable. C. A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash. D. A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash. E. An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.

Q: A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable. Assuming this journal entry was posted, what correcting entry (if any) is needed? A. Debit Cash and credit Accounts Receivable for $72,000 each. B. Debit Cash and credit Accounts Receivable for $144,000 each. C. Credit Cash and debit Accounts Receivable for $72,000 each. D. Credit Cash and debit Accounts Receivable for $144,000 each. E. No correcting entry is needed for this transaction.

Q: Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings. This error was not discovered before the journal entry was posted. What is the correcting entry? A. Debit Buildings and credit Equipment for $50,000 each. B. Debit Equipment and credit Buildings for $50,000 each. C. Debit Buildings and credit Equipment for $100,000 each. D. Debit Equipment and credit Buildings for $100,000 each. E. Debit Equipment for $100,000 and credit Buildings for $50,000.

Q: If the Debit and Credit column totals of a trial balance are equal, then: A. All transactions have been recorded correctly. B. All entries from the journal have been posted to the ledger correctly. C. All ledger account balances are correct. D. The total debit entries and total credit entries are equal. E. The balance sheet would be correct.

Q: The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance? A. The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700. B. The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700. C. The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400. D. The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400. E. The total of the Debit column of the trial balance will equal the total of the Credit column.

Q: In which of the following situations would the trial balance not balance? A. A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. B. The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable. C. A $50 cash receipt for the performance of a service was not recorded at all. D. The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200. E. The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

Q: A trial balance taken at year-end showed total credits exceeding total debits by $4,950. This discrepancy could have been caused by: A. An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash. B. A net income of $4,950. C. The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950. D. The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550. E. An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

Q: A $15 credit to Sales was posted as a $150 credit. By what amount is Sales in error? A. $150 understated B. $135 overstated C. $150 overstated D. $15 understated E. $135 understated

Q: A company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that: A. The Office Supplies account balance will be overstated. B. The trial balance will not balance. C. The error will overstate the debits listed in the journal. D. The total debits in the trial balance will be larger than the total credits. E. The trial balance will be in balance.

Q: Which of the following statements are true? A. If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions. B. The trial balance is a book of original entry. C. Another name for trial balance is chart of accounts. D. The trial balance is a list of all accounts from the ledger with their balances at a point in time. E. The trial balance is another name for the balance sheet as long as debits balance with credits.

Q: A report that lists accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n): A. Account balance B. Trial balance C. Ledger D. Chart of accounts E. General journal

Q: A company had the following account balances at year-end: Cash $30,000 Accounts receivable 32,000 Accounts payable 20,000 Fees earned..65,000 Rent expense15,000 Insurance expense..4,800 Supplies..5,000 Common stock. 5,000 Retained earnings.....14,800 Dividends 18,000 If all of the accounts have normal balances, what are the total debits on the trial balance? A. $45,200 B. $67,000 C. $104,800 D. $209,600 E. $186,600

Q: What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance?? Performed services and left a bill. $4,200 Performed services and collected immediately. $3,500 Performed services and billed customer. $2,200 Performed services on account. $6,000 Received partial payment on account. $1,500 A. $17,400 credit B. $14,400 credit C. $14,400 debit D. $15,900 credit E. $15,900 debit

Q: What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance? Performed services and left a bill. $4,200 Performed services and collected immediately. $3,500 Performed services and billed customer. $2,200 Performed services on account. $6,000 Received partial payment on account. $1,500 A. $17,400 B. $10,900 C. $14,400 D. $ 9,000 E. $15,900

Q: What would be the account balance in Accounts Receivable after the following transactions, assuming a zero beginning balance? Performed services and left a bill. $4,200 Performed services and collected immediately. $3,500 Performed services and billed customer. $2,200 Performed services on account. $6,000 Received partial payment on account. $1,500 A. $17,400 B. $10,900 C. $14,400 D. $ 4,500 E. $ 2,000

Q: What would be the account balance in the Cash account after the following transactions, assuming a zero beginning balance? Owner invested cash. $100,000 Purchased supplies with cash. $20,000 Received bill for one month of rent. $2,200 Paid wages. $800 Billed customer for services performed services performed. $1,250 A. $124,250 B. $80,150 C. $78,250 D. $79,200 E. $80,450

Q: Which of the following is the appropriate journal entry if a company purchases equipment costing $100,000 by paying cash of $10,000? A. Debit to Cash, debit to Equipment, credit to Notes Payable. B. No entry should be made. C. Debit to Equipment, credit to Notes Payable, credit to Cash. D. Debit to Cash, debit to Notes Payable, credit to Equipment. E. Debit to Equipment, debit to Notes Payable, credit to Cash.

Q: Which of the following is the appropriate journal entry if a company hires a new employee? A. Debit to Cash, credit to Wages Revenue. B. No entry should be made. C. Debit to Wages Expense, credit to Cash. D. Debit to Cash, credit to Wages Expense. E. Debit to Wages Payable, credit to Wages Expense.

Q: Which of the following is the appropriate journal entry if a company performs a service and is paid immediately? A. Debit to Cash, debit to Service Revenue. B. Debit to Cash, credit to Service Revenue. C. Debit to Accounts Receivable, credit to Cash. D. Debit to Service Revenue, credit to Accounts Receivable. E. Debit to Accounts Receivable, credit to Service Revenue.

Q: Which of the following is the appropriate journal entry if a company performs a service and then bills the customer? A. Debit to Cash, debit to Service Revenue. B. Debit to Cash, credit to Service Revenue. C. Debit to Accounts Receivable, credit to Cash. D. Debit to Service Revenue, credit to Accounts Receivable. E. Debit to Accounts Receivable, credit to Service Revenue.

Q: All of the sales activity that took place during the current month. A. 1. Journal 2. Journal B. 1. Journal 2. Ledger C. 1. Ledger 2. Ledger D. 1. Ledger 2. Journal E. This information is only available on the financial statements.

Q: Details of a transaction that took place on October 3.

Q: Listed below are two pieces of information. Where is the best place to locate this information, in the journal or the ledger?

Q: A general journal is: A. A ledger in which amounts are posted from a balance column account. B. Not required if T-accounts are used. C. A complete record of each transaction in the place from which transaction amounts are posted to the ledger accounts. D. Not necessary in electronic accounting systems. E. A book of final entry because financial statements are prepared from it.

Q: A balance column account is: A. An account entered on the balance sheet. B. An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted. C. An alternate name for the retained earnings account. D. An account used to record the transfers of assets from a business to its stockholders. E. A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.

Q: What is another name for the general journal? A. The book. B. The ledger. C. The book of original entry. D. The record. E. The account book.

Q: The record in which business transactions are first recorded is the: A. Account balance B. Ledger C. General journal D. Trial balance E. Cash account

Q: A column in journal and ledger accounts used to cross reference journal and ledger entries is the: A. Account balance column B. Debit column C. Posting reference column D. Credit column E. Description column

Q: The process of transferring general journal information to the ledger is: A. Double-entry accounting. B. Posting. C. Balancing an account. D. Journalizing. E. Not required unless debits do not equal credits.

Q: Jones Hardware, Inc. paid a cash dividend of $6,000. What is the necessary entry to record this transaction? A. Debit Cash, credit Retained Earnings. B. Debit Dividends, credit Cash. C. Debit Common Stock, credit Cash. D. Debit Cash, credit Common Stock. E. Debit Cash, credit Dividend Income.

Q: The Fireside Country Inn is a very popular destination for tourists. The Inn requires guests to make reservations at least two months in advance of their stay. A 20 percent down payment is required at the time the reservation is made. When should this inn recognize room rental revenue? A. On the date the reservation is received. B. On the date the money for the reservation is received. C. On the date the guests stay in the inn. D. On the date the guests pay the remaining 80 percent due. E. Once all cash has been received.

Q: On November 30, a company had an Accounts Receivable balance of $5,100. During the month of December, total credits to Accounts Receivable were $76,000 from customer payments. The December 31 Accounts Receivable balance was $43,000. What was the amount of credit sales during December? A. $8,100 B. $27,900 C. $70,900 D. $76,000 E. $113,900

Q: On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May? A. $5,000 B. $47,000 C. $52,000 D. $57,000 E. $32,000

Q: On October 31, a company's Cash account had a normal balance of $7,000. During October, the account was debited for a total of $4,250 and credited for a total of $5,340. What was the balance in the Cash account at the beginning of October? A. $0 balance B. $1,090 debit balance C. $2,590 credit balance D. $8,090 debit balance E. $9,590 credit balance

Q: On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September? A. $0 balance B. $4,300 debit balance C. $4,300 credit balance D. $5,700 debit balance E. $5,700 credit balance

Q: A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is: A. Recorded as a debit to an unearned revenue account. B. Recorded as a debit to a prepaid expense account. C. Recorded as a credit to an unearned revenue account. D. Recorded as a credit to a prepaid expense account. E. Not recorded in the accounting records until the earnings process is complete.

Q: Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction? A. Assets 200,000 Common Stock 200,000 B. Cash and Land 200,000 Common Stock 200,000 C. Cash 70,000 Land 130,000 Common Stock 200,000 D. Common Stock 200,000 Cash 70,000 Land 130,000 E. Common Stock 200,000 Assets 200,000

Q: An asset created by prepayment of an expense is: A. Recorded as a debit to an unearned revenue account. B. Recorded as a debit to a prepaid expense account. C. Recorded as a credit to an unearned revenue account. D. Recorded as a credit to a prepaid expense account. E. Not recorded in the accounting records until the earnings process is complete.

Q: Wisconsin Rentals purchased office supplies on credit. The journal entry made by Wisconsin Rentals to record this transaction will include a: A. Debit to Accounts Payable. B. Debit to Accounts Receivable. C. Credit to Cash. D. Credit to Accounts Payable. E. Credit to Retained Earnings.

Q: Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for a six-month contract in advance. Management Services' journal entry to record this transaction will include a: A. Debit to Unearned Management Fees for $60,000. B. Credit to Management Fees Earned for $60,000. C. Credit to Cash for $60,000. D. Credit to Unearned Management Fees for $60,000. E. Debit to Management Fees Earned for $60,000.

Q: Rocky Industries received its telephone bill in the amount of $300 and immediately paid it. Rocky's journal entry to record this transaction will include a A. Debit to Telephone Expense for $300. B. Credit to Accounts Payable for $300. C. Debit to Cash for $300. D. Credit to Telephone Expense for $300. E. Debit to Accounts Payable for $300.

Q: Which of the following statements is false with regard to the debt ratio? A. It is of use to both internal and external users of accounting information. B. A relatively high ratio is always desirable. C. The dividing line for a high and low ratio varies from industry to industry. D. Many factors such as the company's age, stability, profitability, and cash flow influence the determination of what would be interpreted as a high versus a low ratio. E. The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt.

Q: A company has total liabilities of $550 million and total equity of $300 million. Calculate this company's debt ratio. A. 64.7% B. 100% C. 54.5% D. 1.83 to 1 E. The debt ratio cannot be determined without additional information.

Q: Stride Rite has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio. A. 38.6% B. 13.4% C. 34.9% D. 25.9% E. 14.9%

Q: Which of the following statements is incorrect? A. Higher financial leverage involves higher risk. B. Risk is higher if a company has more liabilities. C. Risk is higher if a company has higher assets. D. The debt ratio is one measure of financial risk. E. Lower financial leverage involves lower risk.

Q: Which of the following formulas can be used to calculate the debt ratio? A. Total equity/Total liabilities B. Total liabilities/Total equity C. Total liabilities/Total assets D. Total assets/Total liabilities E. Total equity/Total assets

Q: The debt ratio is used: A. To measure the amount of equity relative to the expenses. B. To reflect the risk associated with a company's debts. C. Only by banks when a business applies for a loan. D. To determine how much debt a firm should pay off. E. To determine who a company owes.

Q: These transactions were completed by the art gallery opened by Zed Bennett. a. Bennett started the gallery, Artery, by investing $40,000 cash and equipment valued at $18,000 in exchange for common stock. b. Purchased $70 of office supplies on credit. c. Paid $1,200 cash for the receptionist's salary. d. Sold a painting for an artist and collected a $4,500 cash commission on the sale. e. Completed an art appraisal and billed the client $200. What was the balance of the cash account after these transactions were posted? A. $12,230 B. $12,430 C. $43,300 D. $43,430 E. $61,430

Q: The following transactions occurred during July: a. Received $900 cash for services provided to a customer during July. b. Received $2,200 cash investment from Barbara Hanson, the owner of the business. c. Received $750 from a customer in partial payment of his account receivable, which arose from sales in June. d. Provided services to a customer on credit, $375. e. Signed a promissory note for a $6,000 bank loan. f. Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July? A. $900 B. $1,275 C. $2,525 D. $3,275 E. $11,100

Q: During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance? A. $700 B. $1,100 C. $2,900 D. $0 E. $4,300

Q: Which of the following is a true statement regarding debits and credits? A. If a company earned a profit, debits will not equal credits. B. For a business, debits are better than credits. C. A company's books are not in balance if they have a current period loss. D. Assets and expenses are both increased with a debit. E. Liabilities and equity are both increased with a debit.

Q: Double-entry accounting is an accounting system: A. That records each transaction twice. B. That records the effects of transactions and other events in at least two accounts with equal debits and credits. C. In which the impact of each transaction is checked twice to ensure there are no errors. D. That may only be used if T-accounts are used. E. That records the effects of transactions on at least two financial statements.