Q. Accounting system to classify business transactions?
Question
Jerry accepts a formal, written promise from an employee of his hotel to pay a certain sum. The employee plans to repay the hotel within the current fiscal year, and states this intention in the note. Notes Receivable are classified as:
Answer
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a.
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owners' equity.
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b.
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liabilities.
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c.
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assets.
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d.
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expenses.
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Question
The basic element used in an accounting system to classify and summarize business transactions is the:
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a.
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marketable security.
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b.
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T-account.
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c.
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account.
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d.
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Liability
Question 15
Sara totals the credits and debits for a certain account and finds that the account carries a debit balance. All of the following types of accounts typically carry a debit balance except:
Answer
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a.
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drawing accounts.
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b.
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expense accounts.
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c.
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asset accounts.
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d.
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liability accounts.
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Question
Revenue from cash sales ultimately affects which two balance sheet accounts?
Answer
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a.
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assets and expenses
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b.
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assets and owner's equity
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c.
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assets and liabilities
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d.
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liabilities and owner's equity
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