1. The process of identifying the specific effects of economic
events on the accounting equation is referred to as:
b. transaction analysis.
2. When cash is received before services have been performed, which accounts are increased?
a. cash and service revenue.
b. cash and prepaid accounts receivable.
c. cash and unearned revenue.
d. unearned revenue and service revenue.
3. Dividends are:
a. recorded on the income statement.
b. recorded as assets.
c. increased with a credit.
d. decreases on the retained earnings statement.
4. Items such as a sales slip, a check, a bill, or a cash register tape are examples of:
a. balance sheet accounts.
b. income statement accounts.
c. cost of goods sold.
d. source documents.
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