Question :
31) Which of the following a correct numbering system for : 1230096
31) Which of the following is a correct numbering system for a chart of accounts?
A) Accounts payable is numbered 153.
B) Utilities expense is numbered 487.
C) Accounts receivable is numbered 104.
D) Sales revenue is numbered 809.
32) Which account has a normal debit balance?
A) Salaries payable
B) Common Stock
C) Advertising Expense
D) Service revenue
33) The normal balance of the Accounts Payable account is a ________ because it is a(n) ________ account.
A) credit; liability
B) debit; stockholders’ equity
C) credit; expense
D) debit; asset
34) Which of the following is a correct numbering system for a chart of accounts?
A) Office supplies is numbered 0145.
B) Notes payable is numbered 20.
C) Advertising expense is numbered 877.
D) Interest revenue is not given an account number because it is not used on a monthly basis.
35) When using a four-column ledger account format, the pair of columns on the far right is used to show the:
A) names of the accounts being debited and credited.
B) transaction dates and journal reference.
C) account balance.
D) debit and credit amounts posted from journal entries.
36) Aurora Company had a cash balance On May 1 of $17,000. At the end of May, the cash balance had
increased to $28,000. During the month of May, Aurora received cash of $26,000 from various sources.
Based on this information, cash payments for the month of May:
A) were $11,000.
B) were $15,000.
C) were $19,000.
D) cannot be determined from the information given.
37) Golden Company had a balance of $40,000 in Accounts Payable at the beginning of June, and purchased $30,000 of merchandise on account during the month At the end of June, Golden’s Account Payable balance was $28,000. What amount did Golden pay on account during June?
A) $38,000
B) $42,000
C) $108,000
D) The amount cannot be determined from the information given.
38) The Accounts Receivable account for Rusty’s Mechanic Shop had a beginning balance of $12,000. During the month, Rusty received payments of $7,000 on account and made sales on account of $16,000. The ending balance in the Accounts Receivable account is:
A) $3,000.
B) $9,000.
C) $21,000.
D) $35,000.
39) The Diamond Store began business on June 1. During the month of June, it had cash payments of $9,000.At the end of June, it had a $14,000 balance in cash. Based on this information, the cash receipts for the month of June:
A) were $5,000.
B) were $16,000.
C) were $23,000.
D) cannot be determined.
40) ABC Company began the month with a balance of $70,000 in Accounts Receivable. An analysis of the account determined that sales on account for the month totaled $110,000. At the end of the month, the balance in Accounts Receivable was $$85,000. From this information, it can be determined that the ABC Company had collections from customers on account of:
A) $15,000.
B) $45,000.
C) $95,000.
D) $115,000.
