101. 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.
102. 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
103. 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
104. 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
105. 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
106. 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 20percent 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 80percent due.
E. Once all cash has been received.
107. Jones Hardware, Inc. paida 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.
108. 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.
109. 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
110. 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