HFT 2401 TEST QUESTIONS WITH
100% CORRECT ANSWERS
The posting records of one transaction ended in the Debit side of the "Cash T-account"
for $3,000; and the same transaction also ended in the Credit side of the "Unearned
Revenues T-account" for $3,000.
Which one of the following descriptions most appropriately describes this transaction? -
Answer-The company has received $3,000 of cash from its customer as a deposit for
future services.
The posting records of another transaction show the following results: (1) a Debit entry
of $1,000 on the "Cash T-account"; (2) a Credit entry of $4,000 on the "Revenues T-
account"; and finally (3) a Debit entry of $3,000 on the "Unearned Revenues" T-
account.
Which one of the following descriptions most appropriately describes this transaction? -
Answer-The company delivered $4,000 worth of its products and services. Since there
was an advanced deposit of $3,000 for this, the customer paid the difference of $1,000
in cash. The company has eliminated its liability of $3,000.
Which one of the following is the correct sequence of recording process before
preparing financial statements? - Answer-4. Journalizing, posting, trial balance,
adjusting entries (with posting), adjusted trial balance
Every business has to prepare its financial reports periodically (at least once a year)
during its never-ending life (in principle). What accounting principles (GAAP) are
relevant to this practice? - Answer-4. Time Period Principle & Continuity (Going-
Concern) Principle
Which side (DR or CR) will present the balance of "Revenues" account on the Trial
Balance? - Answer-CR
Which side (DR or CR) will present the balance of "Accounts Payable" account on the
Trial Balance? - Answer-CR
Which side (DR or CR) will present the balance of "Accrued Payroll Expense" account
on the Trial Balance? - Answer-CR
Which side (DR or CR) will present the balance of "Prepaid Rent Expense" account on
the Trial Balance? - Answer-DR
100% CORRECT ANSWERS
The posting records of one transaction ended in the Debit side of the "Cash T-account"
for $3,000; and the same transaction also ended in the Credit side of the "Unearned
Revenues T-account" for $3,000.
Which one of the following descriptions most appropriately describes this transaction? -
Answer-The company has received $3,000 of cash from its customer as a deposit for
future services.
The posting records of another transaction show the following results: (1) a Debit entry
of $1,000 on the "Cash T-account"; (2) a Credit entry of $4,000 on the "Revenues T-
account"; and finally (3) a Debit entry of $3,000 on the "Unearned Revenues" T-
account.
Which one of the following descriptions most appropriately describes this transaction? -
Answer-The company delivered $4,000 worth of its products and services. Since there
was an advanced deposit of $3,000 for this, the customer paid the difference of $1,000
in cash. The company has eliminated its liability of $3,000.
Which one of the following is the correct sequence of recording process before
preparing financial statements? - Answer-4. Journalizing, posting, trial balance,
adjusting entries (with posting), adjusted trial balance
Every business has to prepare its financial reports periodically (at least once a year)
during its never-ending life (in principle). What accounting principles (GAAP) are
relevant to this practice? - Answer-4. Time Period Principle & Continuity (Going-
Concern) Principle
Which side (DR or CR) will present the balance of "Revenues" account on the Trial
Balance? - Answer-CR
Which side (DR or CR) will present the balance of "Accounts Payable" account on the
Trial Balance? - Answer-CR
Which side (DR or CR) will present the balance of "Accrued Payroll Expense" account
on the Trial Balance? - Answer-CR
Which side (DR or CR) will present the balance of "Prepaid Rent Expense" account on
the Trial Balance? - Answer-DR
