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Question 3 of 1010.0/ 10.0 PointsOne of the purposes of a ledger account is to record the complete effect of a transaction in one place.A. TrueB. FalseAnswer Key: FalseQuestion 4 of 1010.0/ 10.0 PointsA company purchased equipment for $1,000; the journal entry to record this purchase is:Question 5 of 1010.0/ 10.0 PointsEvery transaction always affects two or more accounts in a double-entry accounting system.Question 6 of 1010.0/ 10.0 Points
Since a particular journal entry has equal debits and credits, this entry must be correct.Question 7 of 1010.0/ 10.0 PointsLiabilities represent claims against the company’s assets and may be in the form of accounts payable or notes payable.A. TrueB. FalseAnswer Key: TrueQuestion 8 of 1010.0/ 10.0 PointsA journal aids in the division of labor by allowing one person to journalize entries while another individual may post these entries.Question 9 of 1010.0/ 10.0 PointsA law firm completed legal work for Public Service Company on credit. What entry should be made on the law firm’s books?
Question 10 of 1010.0/ 10.0 PointsHorizontal analysis shows the percentage that each item in a financial statement is of some significant total such as total assets or sales.ACCT105 Week 2 QuizReturn to Assessment ListPart 1 of 1 -100.0/ 100.0 PointsQuestion 1 of 10 10.0/ 10.0 PointsA cash expenditure for insurance and utilities would cause assets to increase but stockholders’ equity to decrease.A. TrueB. FalseAnswer Key: FalseQuestion 2 of 10 10.0/ 10.0 PointsThe trial balance would automatically reveal the following error: Land was purchased for cash but instead of crediting cash, the credit was made to Accounts Receivable.
Question 3 of 10 10.0/ 10.0 PointsLiabilities represent claims against the company’s assets and may be in the form of accounts payable or notes payable.