Account Debit Credit
The credit purchase of a new oven for $5,300 was posted to
Kitchen Equipment as a $5,300 debit and to Accounts Payable
as a $5,300 debit. What effect would this error have on the
trial balance?
Multiple Choice
•
The total of the Debit column of the trial balance will
equal the total of the Credit column.
•
The total of the Credit column of the trial balance will
exceed the total of the Debit column by
$5,300.
•
The total of the Debit column of the trial balance will
exceed the total of the Credit column by
$10,600.
•
The total of the Credit column of the trial balance will
exceed the total of the Debit column by
$10,600.
•
The total of the Debit column of the trial balance will
exceed
the total of the Credit column by $5,300.
Centurion Co. had the following accounts and balances at December 31:
Cash $11,200
Accounts Receivable 2,240
Prepaid Insurance 2,880
Supplies 1,240
Accounts Payable $ 5,600
Common Stock 5,620
Service Revenue 8,200
Salaries Expense 620
Utilities Expense 1,240
Totals $19,420 $19,420
$4,980.
•
$6,340.
•
Multiple Choice
$11,840.
•
$4,360.
•
$1,340.
•
209.2 %.
•
109.2 %.
•
•
95.6 %.
•
Using the information in the table, calculate the company's reported net income for the period.
Prev
A company had $6,930,000 in net income for the year. Its net
sales were
$14,500,000
for
the
same
period.
Calculate
its
profit
margin.
Multiple Choice
•
23.9 %.
47.8 %.
TRUE
If a company has current assets of $15,840 and current liabilities of $9,900. Its current ratio is
1.6.
