简答题Expenses increase owners' equity.简答题Prepaid expenses are ____ A、assets. B、revenue. C、liabilities. D、owners' equity.简答题Black Inc. collected cash of $4,200 from an account receivable in May and the receivable originated in April from services rendered to a client. The accountant in Black Inc. journalized the business transaction by debiting the Cash account and crediting the Revenue from Services account in May.简答题A journal entry to recognize an expense must include ____ A、a credit to Accounts Payable account. B、a debit to an Expense account. C、a credit to Cash account. D、a debit to Accounts Payable account.简答题Prepaid expenses are assets that should appear on the balance sheet.简答题Prepaid expenses represent expenses and appear on income statements.简答题A trial balance provides proof that all transactions were correctly posted to the ledger.简答题At the end of September, Jack received a bill for fuel used in September. Payment is not due until October 30. This transaction ____ A、should not be recorded in the accounting records until October. B、causes a decrease in assets and in owners' equity in October when the bill is paid. C、should be recorded as an expense of September, regardless of the payment date. D、is recorded as a liability in September, but is not considered an expense until paid.简答题Manufacturing companies normally have three types of inventory: A、materials, labor, and manufacturing overhead. B、raw materials, work in process, and finished goods. C、work in process, finished goods, and returned goods. D、economy inventory, standard inventory, and deluxe inventory.简答题Posting is a process that Ledger accounts are updated.简答题Drawing are an expense to a corporation and appear on the income statement.简答题Welson, Inc., a music group, entertained at a black-tie dinner dance on July 26, and collected the fee in full at the end of the evening. This transaction ____ A、causes an increase in assets and revenue, as well as an increase in owners' equity. B、causes an decrease in assets and a decrease in owners' equity. C、causes an increase in assets and a decrease in owners' equity. D、violates the matching principle unless any expenses associated with this cash receipt are paid prior to recording the revenue.简答题According to matching principle, Sally Smith had expenses of $500 in April which she paid in May. She reported these expenses on her May income statement.简答题During March, Evergreen Landscaping paid $3,280 salary to an employee for time worked during February and journalized the business transaction by debiting the Salaries Expense accounts and crediting the Cash account.简答题When goods are completed and transferred from the product line, ____ A、Cost of Goods Sold is debited and Finished Goods Inventory is credited. B、Work in Process Inventory is debited and Finished Goods Inventory is credited. C、Finished Goods Inventory is debited and Cost of Goods Sold is credited. D、Work in Process Inventory is credited and Finished Goods Inventory is debited.简答题Palmer Inc. completed plans for guesthouse, pool, and spa for a client and the $7,500 fee for this project was billed to the client in May, but will not be collected until June 25. Palmer company journalized the business transaction by debiting the Accounts Receivable account and crediting the Revenue from Services account in May .简答题A journal entry to record revenue could include each of the following, except ____ A、a credit to a Revenue account. B、a credit to the Owner’s Capital account. C、a debit to Cash account. D、a debit to Accounts Receivable.简答题During 2018 Bill Inc. incurred operating expenses of 200,000 was paid in cash; the balance will be paid in January 2019. Transaction analysis of operating expenses for 2018 should reflect only the following: A、Decrease owner’s equity 200,000. B、Decrease assets, 300,000. C、Decrease owner’s equity, 200,000; increase liabilities, 300,000; increase liabilities, 200,000.简答题Which of the following is not a step in the accounting cycle? A、Journalizing the transactions. B、Preparing a sale order. C、Posting of journal entries to ledger accounts. D、Preparing a trial balance.简答题Journals are updated first, and then transactions are posted into the ledger.