Question :
81. On December 31, 2010, Avery Corporation paid $10,000 for next : 1228487
81. On December 31, 2010, Avery Corporation paid $10,000 for next year’s insurance policy. This transaction should be recorded as follows by Avery:
A. Option A
B. Option B
C. Option C
D. Option D
82. Mama June Pizza Company sold land costing $39,000 for $51,000 cash. Which of the following statements concerning the land sale is correct?
A. The land account was credited for $51,000.
B. The revenue account was debited for $51,000.
C. Operating income increased $12,000.
D. Income before income taxes increased $12,000.
83. Which of the following statements is false when Mama June Pizza Company paid $47,000 cash on accounts owed to suppliers?
A. The cash account was credited for $47,000.
B. Accounts payable was debited for $47,000.
C. Supplies expense was increased by $47,000.
D. Operating income was not changed by the payment to the suppliers.
84. Which of the following journal entries is correct assuming that Mama June Pizza Company received cash for interest earned on investments?
A. Option A
B. Option B
C. Option C
D. Option D
85. Mama June Pizza Company determined that dough, sauce, cheese and other ingredients costing $8,700 were used to make pizzas during July. Which of the following statements is false with respect to the use of the ingredients?
A. Cost of goods sold was debited for $8,700.
B. Operating expenses increased $8,700.
C. Operating income decreased $8,700.
D. Supplies inventory was debited for $8,700.
86. Zeppelin Company received cash during January for services to be provided in February. Which of the following statements does not accurately describe the impact on the financial statements when Zeppelin provides the services during February?
A. Unearned revenues decreased and were debited.
B. Revenues increased and were credited.
C. Stockholders’ equity will increase.
D. Total assets will increase.
87. Which of the following describes the transaction resulting in a journal entry with a debit to Salaries payable and a credit to Cash?
A. Salaries expense has been incurred but is unpaid.
B. Cash was used to pay for salaries that were previously recorded as an expense.
C. Cash was used to pay for salaries that were not previously recorded as an expense.
D. Cash was used to prepay employee wages.
88. Which of the following statements is correct?
A. Recording revenues results in an increase in assets or a decrease in liabilities.
B. Recording revenues results in an increase in assets or a decrease in stockholders’ equity.
C. Recording expenses results in a decrease in assets or a decrease in liabilities.
D. Recording expenses results in an increase in assets or an increase in liabilities.
89. Which of the following statements is false?
A. The unearned revenue account has a credit balance.
B. The revenue account has a credit balance.
C. An expense account has a debit balance.
D. A prepaid expense account has a credit balance.
90. Which of the following accounts doesn’t have a debit balance?
A. Prepaid insurance
B. Insurance expense
C. Unearned revenues
D. Salaries expense
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