Finance Questions

Matlack Company begins operations on January 1, 2022, with $100,000 in common stock. At the end of 2022, Matlack has the following financial information:CS $100,000Revenue 90,000Rent Expense 20,000Utilities Expense 10,000Equipment 90,000Cash $40,000A/R 25,000A/P 40,000Sal Expense 35,000Dividends Paid 10,000The amount of total assets as of 12/31/22 would be-$255,000-$155,000-$240,000$140,000

Rider Company is in the process of preparing closing entries. It first closes its revenue accounts by crediting the Income Summary account for $68,000 and then, closes its expense accounts by debiting the Income Summary account for $45,000. The entry to then close the Income Summary account is - credit Income Summary, $23,000, and debit Retained Earnings, $23,000-debit Income Summary $23,000, and credit Retained Earnings, $23,000-debit Income Summary, $68,000, and credit Income Summary, $45,000-debit Dividends, $45,000, and credit Income Summary, $45,000

On January 15th, a company receives cash for services to be performed on February 3rd, which of the following correctly depicts what accounts will be debited and credited on January 15th?-cash will debited and service revenue will be credited -cash will be credited and service revenue will be debited -cash will be credited and unearned service revenue will be debited -cash will be debited and unearned service revenue will be credited

If assets increase $100,000 and stockholder's equity decreases $20,000 then liabilities must -increase $120,000-increase $100,000-decrease $100,000-decrease $120,000

If equipment increases $20,000, for the accounting equation to balance, then which of the following could also happen-cash increases $20,000-accounts payable increases $20,000-accounts payable decreases $20,000stockholder's equity decreases $20,000

when a net loss has occured, Income Summary is -debited and Retained Earnings is credited -credited and Retained Earnings is debited -credited and Dividends is debited -debited and Dividends is credited

The financial statement that reports assets, liabilities and stockholder's equity at a certain date correctly describes the -income statement -balance sheet -retained earnings statement -cash flow statement

Which of the following events cannot be recorded due to violation of the monetary unit assumption?-payment of office rent for the month -purchase of a new vehicle -the sale of inventory -customer satisfaction

The closing process involves separate entries to close (1) expenses, (2) dividends, (3) revenues, and (4) income summary. The correct sequencing of the entries is - 1,2,3,4-4,3,2,1-3,1,4,2-3,2,1,4

The Dividends account is closed through the Income Summary account-true -false

Income Summary has a credit balance of $12,000 after closing revenues and expenses. The entry to close Income Summary is -debit income Summary $12,000, credit the Dividends account $12,000-credit Income Summary $12,000, debit the Retained Earning account $12,000-debit Income Summary $12,000, credit the Retained Earnings account $12,000-credit Income Summary $12,000, debit the Dividends account $12,000

The proper order of the following steps in the accounting cycle is -journalize transactions, prepare unadjusted trial balance, post to ledger accounts, journalize and post adjusting entries-prepare unadjusted trial balance, journalize and post adjusting entries, journalize transaction, post to ledger accounts- journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post adjusting entries -prepare unadjusted trial balance, journalize transactions, post to ledger accounts, journalize and post adjusting entries

Major Company received $1,000 for future services at the beginning of the period and initially recorded the cash received as Service Revenue. At the end of the period, Major has not performed $600 of the required services. The adjusting entry required at the end of an accounting period will include a - debit to an unearned service revenue account -debit to a service revenue account -credit to an asset account -credit to an expense account

In closing the books, all temporary accounts are closed -true -false

The post-closing trial balance will contain only permanent accounts-true -false

The expense recognition principle matches -assets with liabilities -assets with owner's equity-expenses with revenues -assets with expenses

Expenses paid in cash and recorded as assets before they are used are called -unearned expenses -prepaid expenses -accrued expenses -interim expenses

Combining the activities of an individuals personal vehicle insurance with their pizza restaurants utilities for the month would violate- monetary unit assumption -ethics principle -economic entity assumption -fair value principle

Kathy Siska earned a salary of $400 for the last week of September. She will be paid on October 1. The adjusting entry for Kathy's employer at September 30 is - no entry is required -Salaries and Wages Payable 400 cash 4000- salaries and wages expense 400 salaries and wages payable 400- salaries and wages expense 400 cash 400

The Accumulated Depreciation account - is a contra asset account with a credit balance -is a contra revenue account with a debit balance -is shown on the balance sheet as liability -is shown as an expense on the income statement