84.Preparing a journal entry in proper form involves all the following
except:
A. Listing all accounts debited before any credits.
B. Computing the balances in accounts involved in the transaction.
C. Indicating the date of the transaction.
D. Providing a brief written explanation of the transaction.
85.Posting is the process of:
A. Transferring debit and credit entries from the journal into the appropriate ledger accounts.
B. Determining that the dollar amount of debit entries recorded in the ledger is equal to the dollar amount of credit entries.
C. Entering information into a computerized data base.
D. Preparing journal entries to describe each business transaction.
86.This transaction involves:
A. The sale of land and building for $286,000.
B. Payment of $221,000 on a note payable.
C. The receipt of $65,000 cash.
D. An increase in liabilities of $221,000.
87.Refer to the information above. Before the journal entry above, Wood had assets, liabilities, and owners' equity of $450,000, $100,000, and $350,000, respectively. What are
total assets
immediately
after
the above transaction occurs?
A. $221,000.
B. $671,000.
C. $735,500.
D. $450,000.
88.Refer to the information above. This transaction involves:
A. Martin's collection of $30,000 on an account receivable.
B. Payment of $21,000 cash by Martin.
C. A $21,000 overall increase in Martin's assets.
D. Sale of equipment by Martin for $51,000.
89.Refer to the information above. Before the journal entry above, Martin had assets of $900,000; liabilities of $460,000; and owners' equity of $440,000. Total assets immediately after the above transaction has been recorded amount to:
A. $900,000.
B. $921,000.
C. $956,000.
D. $794,000.
90.Refer to the information above. This transaction involves:
A. Galloway's collection of $20,000 on an account payable.
B. Payment of $6,000 cash by Galloway.
C. A $26,000 overall increase in Galloway's assets.
D. Sale of inventory by Galloway for $26,000.
91.Refer to the information above. Before the journal entry above, Galloway had assets of $450,000; liabilities of $230,000; and owners' equity of $220,000. Total assets immediately after the above transaction has been recorded amount to:
A. $430,000.
B. $450,000.
C. $470,000.
D. $476,000.
92.The price of the goods sold or services rendered during a given accounting period is called:
A. Net income.
B. Profit.
C. Revenue.
D. Equity.
93.All of the following statements are true of an income statement
except:
A. The period of time covered by an income statement is the company's accounting period.
B. A fiscal year is any accounting period less than 12 months in length.
C. The length of a company's accounting period may vary.
D. Every business prepares an annual income statement.