8/11/26, 11:55 AM ACCT 3110 Entrance Exam Flashcards | Quizlet
Which of the following terms describe probably future economic benefits obtained
or controlled by a particular company as a result of past transactions or events?
Asset
ABC corporation issues 1,000 shares of $10 par value common stock at $12 per share.
In recording the transaction, credits are made to:
Common Stock $10,000 and Paid-in Capital in Excess of Par Value $2,000
The financial effect of a business transaction is initially recorded with:
A journal Entry
Which of the following descriptions about accrue basis accounting is INCORRECT?
Under accrual basis accounting, revenue is recognized when cash is received
After transactions are recorded in the general journal, the usual next step in the
accounting cycle is to:
Post transactions to the general ledger where an unadjusted trial balance can be
prepared
The usual final step in the accounting cycle is to:
Prepare a post-closing trial balance for the next accounting period
Arnold Company provided services to its customers on credit for $25,000. For Arnold
Company, this transaction:
Increased assets
Douglas Company paid its landlord $6,000 for this month's rental on its warehouse.
This transaction:
Increased expenses
https://quizlet.com/241872593/acct-3110-entrance-exam-flash-cards/ 2/5
Which of the following terms describe probably future economic benefits obtained
or controlled by a particular company as a result of past transactions or events?
Asset
ABC corporation issues 1,000 shares of $10 par value common stock at $12 per share.
In recording the transaction, credits are made to:
Common Stock $10,000 and Paid-in Capital in Excess of Par Value $2,000
The financial effect of a business transaction is initially recorded with:
A journal Entry
Which of the following descriptions about accrue basis accounting is INCORRECT?
Under accrual basis accounting, revenue is recognized when cash is received
After transactions are recorded in the general journal, the usual next step in the
accounting cycle is to:
Post transactions to the general ledger where an unadjusted trial balance can be
prepared
The usual final step in the accounting cycle is to:
Prepare a post-closing trial balance for the next accounting period
Arnold Company provided services to its customers on credit for $25,000. For Arnold
Company, this transaction:
Increased assets
Douglas Company paid its landlord $6,000 for this month's rental on its warehouse.
This transaction:
Increased expenses
https://quizlet.com/241872593/acct-3110-entrance-exam-flash-cards/ 2/5
