Question

Thank you for answering this question. Question 1, 2, 4 and 5. Thank again and be safe during this COVID-19 period. 2020. QUESTION 1 Financial accounting information likely to be used for all of the following types of decisions except: a. deciding whether to add a new product line. b.determining whether the net earnings last year were satisfactory. c. deciding whether dividends should be increased. d.deciding whether a potential customer should be allowed to purchase goods on a credit basis. e. appraising the ability of an entity to pay its debts when they become due. QUESTION 2 Steno Services, Inc. purchased a laptop PC for $400 and a new typist chair for $120, on account from Office Equipment Company. What journal entry is required? a. Debit Office Machines, $520; credit Notes Payable, $520. b. Debit Assets, $520; credit Liabilities, $520 c. Debit Office Machines, $400, and Office Furniture and Fixtures, $120, credit Cash, $520. d. Debit Office Machines, $400, and Office Furniture and Fixtures, $120; credit Accounts Payable, $520. e. Debit Office Machines, $400; credit Accounts Payable, $400. QUESTION 3 Which of the following statements regarding a trial balance is incorrect? o a. A trial balance proves that no error of any kind has been made in the accounting for the activities of a period. b.A trial balance provides a convenient list of the accounts that can be used in preparing the financial statements. C. A trial balance is a list of all of the open accounts in the ledger with their balances as of a given date. d. A trial balance helps to identify the period in which an error has been made. e. A trial balance is a test of the equality of debits and credits in the ledger. QUESTION 4 A ledger is defined as: a. a collection of transactions, b.a collection of all of the balance sheet accounts. c. a collection of all of the income statement accounts. d. something else as none of the other answer options given here best defines what a ledger is. e. a listing of all accounts and their balances. QUESTION 5 "Posting" is the act of: a. entering amounts in the accounts in the ledger as indicated in the journal. b.transferring the balances in the ledger to the trial balance. c. transferring amounts from the ledger to the journal so that balances may be determined for each account. d.recording entries in the journal. e.tracing amounts from the journal to the ledger in an attempt to find errors.

Answer 1

Solutions:

1.Solution: Option a

i.e., deciding Whether to add a new product line.

2.Solution: Option c (Assume Cash purchases)

i.e., Debit office machines $400 and office furniture and fixtures $120, credit cash $520.

4.Solution: Option e

Ledger is defined as a listing of all accounts and their balances.

5. Solution: Option a

Posting is an act of Entering amounts in the accounts in the ledger as indicated in the jornal.