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Which of the following is not a recordable transaction?
Multiple Choice
a) Issued shares of stock to investors in exchange for cash contributions of $4,000.
b) Ordered inventory from suppliers for $3,000.
c) Borrowed money from the bank by signing a promissory note for $2,000.
d) Sold equipment to another company for $3,000 and accepted a note from the company promising payment in 6 months.
A credit would make which of the following accounts decrease?
Multiple Choice
a) Retained Earnings.
b) Deferred Revenue.
c) Allowance for Uncollectible Accounts.
d) Accounts Receivable.
Adjusting entries:
Multiple Choice
a) Adjust the balance of revenue and expense accounts to zero.
b) Can include the cash account.
c) Usually are recorded at the beginning of the accounting period.
d) Always change at least one income statement account balance and one balance sheet account balance.
Which of the following situation will not likely result in an end of the period adjustment?
Multiple Choice
a) Asset purchased in advance of the use of this asset in operations.
b) A bill is received for expenses for the current month and is due next month.
c) Cash is received in advance of a delivery of a good or service.
d) Expenses are incurred and paid for in the current month.
Answer & Explanation
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