6. Consider the following accounts: Utility Expense Accounts Payable Service Revenue Common Stock How many of...

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Accounting

6. Consider the following accounts: Utility Expense AccountsPayable Service Revenue Common Stock How many of these accounts areincreased with credits? a. One. b. Two. c. Three. d. Four.
7. Schooner Inc. purchased equipment by signing a note payable.This transaction would be recorded as: a. Debit Equipment, creditCash. b. Debit Cash, credit Notes Payable. c. Debit Notes Payable,credit Equipment. d. Debit Equipment, credit Notes Payable.
8. Air France collected cash on February 4 from the sale of aticket to a customer on January 26. The flight took place on April5. According to the revenue recognition principle, in which monthshould Air France have recognized this revenue? a. January. b.February. c. April. d. Evenly in each of the three months.
9. Which of the following regarding adjusting entries iscorrect? a. Adjusting entries are recorded for all externaltransactions. b. Adjusting entries are recorded to make sure allcash inflows and outflows are recorded in the current period. c.Adjusting entries are needed because we use accrual-basisaccounting. d. After adjusting entries, all temporary accountsshould have a balance of zero. 3 / 10
10. An adjusted trial balance: a. Is a list of all accounts andtheir balances after adjusting entries. b. Is a list of allaccounts and their balances before adjusting entries. c. Is a listof all accounts and their balances after closing entries. d. Is atrial balance adjusted for cash-basis accounting.

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Question 6 Correct Answer Three Explanation Every liability account increases when it is credited Every Shareholders Equity account increases when credited except Dividends and Withdrawals And every revenue account is increased when it is credited Accounts payable Service revenue and common stock are the three accounts which increase with credit Accounts Payable is a liability account Common stock is shareholders See Answer

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