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Q. Accounting system to classify business transactions?
Question
Jerry accepts a formal, written promise from an employee of his hotel to pay a certain sum. The employee plans to repay the hotel within the current fiscal year, and states this intention in the note. Notes Receivable are classified as:
Answer
a.
owners' equity.
b.
liabilities.
c.
assets.
d.
expenses.
The basic element used in an accounting system to classify and summarize business transactions is the:
marketable security.
T-account.
account.
Liability
Question 15
Sara totals the credits and debits for a certain account and finds that the account carries a debit balance. All of the following types of accounts typically carry a debit balance except:
drawing accounts.
expense accounts.
asset accounts.
liability accounts.
Revenue from cash sales ultimately affects which two balance sheet accounts?
assets and expenses
assets and owner's equity
assets and liabilities
liabilities and owner's equity
gaining comparatively at someone else''s expense
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