First Section Practice Problems with Solutions

First Section Practice Problems with Solutions - Practice...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
, 10 000 Beg Balance Cash Payments , 200 000 , 240 000 Purchases , 50 000 End Balance Accounts Payable Practice Problems 1. Accounts Payable had a $10,000 balance at the beginning of September 2010 and had a balance of $50,000 at the end of September. There were $240,000 purchases of inventory on account. What were cash payments towards Accounts Payable? a. $250,000 b. $200,000 c. $240,000 d. $40,000 2. A failure to record an adjusting entry for depreciation expense at the end of the period would have the following impact: a. Assets will be understated and revenues will be understated. b. Liabilities will be understated and revenues will be understated. c. Assets will be understated and expenses will be understated. d. Assets will be overstated and expenses will be understated. The following is the journal entry that should’ve been booked: Depreciation Expense $XXXX Accumulated Depreciation $XXXX Without this entry, expenses would be too low and assets would be too high.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/17/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas.

Page1 / 4

First Section Practice Problems with Solutions - Practice...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online