51) If Capital has been credited, it is likely that:

A) services were provided to a cash customer.

B) services were provided to a charge customer.

C) the owner made an investment.

D) All of these are possible

52) If Fees Earned has been credited, it is most likely that:

A) services were provided.

B) the owner made an investment.

C) a correcting entry for the overstatement of revenue was recorded.

D) All of these are possible.

 

53) If Accounts Payable has been debited, it is most likely that:

A) a payment was made on account.

B) a purchase was made on account.

C) a charge customer made a payment.

D) None of these are possible.

 

54) If Accounts Payable has been credited, it is most likely that:

A) a payment was made on account.

B) a purchase was made on account.

C) a correcting entry was made for the overstatement of the purchase of equipment on account.

D) None of these are possible.

 

55) The time period for which an income statement is prepared is called the accounting period.

 

56) A fiscal year is always January 1 through December 31.

57) Transactions are listed in chronological order in the journal.

 

58) Insurance paid in advance is a liability.

 

59) Interim statements are statements that are usually prepared for a portion of the business’ fiscal year.

 

60) A journal is called the book of final entry.

 

 

 



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