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Unformatted text preview: $900 4. LMN experienced an accounting event that affected its financial statements as follows Assets = Liab. + Equity Rev. ─ Exp. = Net Inc. Cash Flow + NA + + NA + + OA The general journal entry to record the event must have included a. A debit to an asset account and a credit to unearned revenue. b. A credit to an asset account and a debit to a revenue account. c. A debit to cash and a credit to revenue. d. A debit to cash and a credit to accounts receivable. 5. ABC Company experienced an accounting event that is recorded in the following T-accounts: Cash Unearned Revenue 5,000 5,000 Which of the following reflects how this event affects the company’s financial statements? Assets = Liab. + Equity Rev. ─ Exp. = Net Inc. Cash Flow a. + + NA NA + ─ + FA b. + + NA NA NA NA + OA c. + NA + + NA + + OA d. + + NA NA NA NA + FA 2PTS BONUS QUESTION Closing entries are journalized after the financial statements are prepared. True False...
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- Spring '07
- Accounting, Generally Accepted Accounting Principles, NA NA NA