Questions from Financial Accounting

Q: For 2010, Matthews Company had revenues in excess of expenses.

For 2010, Matthews Company had revenues in excess of expenses. Which statement describes Matthews closing entries at the end of 2010? a. Revenues will be credited, expenses will be debited, and retai...

Q: Which of the following accounts would not be included in the closing

Which of the following accounts would not be included in the closing entries? a. Depreciation Expense b. Accumulated Depreciation c. Retained Earnings d. Service Revenue

Q: Lanos Medical, Inc., ended 2009 with cash of $25

Lanos Medical, Inc., ended 2009 with cash of $25,000. During 2010, Lanos earned net income of $95,000 and had adjustments to reconcile net income to net cash provided by operations totaling $20,000 (t...

Q: A major purpose of preparing closing entries is to a.

A major purpose of preparing closing entries is to a. zero out the liability accounts. b. close out the Supplies account. c. adjust the asset accounts to their correct current balances. d. update...

Q: Pinker Corporation began the year with cash of $30,000

Pinker Corporation began the year with cash of $30,000 and a computer that cost $25,000. During the year Pinker earned sales revenue of $135,000 and had the following expenses: salaries, $57,000; rent...

Q: Purchasing a building for $110,000 by paying cash of

Purchasing a building for $110,000 by paying cash of $15,000 and signing a note payable for $95,000 will a. increase both total assets and total liabilities by $95,000. b. increase both total assets...

Q: What is the effect on total assets and stockholders equity of paying

What is the effect on total assets and stockholders equity of paying the telephone bill as soon as it is received each month? Total assets…………Stockholders equity a. No effect………………………..No effect b. D...

Q: The journal entry to record the receipt of land and a building

The journal entry to record the receipt of land and a building and issuance of common stock a. debits Land and credits Common Stock. b. debits Land and Building and credits Common Stock. c. debits...

Q: Which of the following transactions will increase an asset and increase stockholders

Which of the following transactions will increase an asset and increase stockholders equity? a. Borrowing money from a bank b. Purchasing supplies on account c. Performing a service on account for...

Q: If the credit to record the payment of an account payable is

If the credit to record the payment of an account payable is not posted, a. expenses will be understated. b. liabilities will be understated. c. cash will be understated. d. cash will be overstated...