Exam (elaborations)
HBX CORE HARVARD BUSINESS SCHOOL
- Course
- Institution
HBX CORE HARVARD BUSINESS SCHOOL
[Show more]
Content preview
HBX COREHARVARD
BUSINESS SCHOOL
(liability) ACCOUNTS PAYABLE increases with a - Answers -Credit
(asset) CASH decreases with a - Answers -Credit
(asset) NOTES RECEIVABLE increases with a - Answers -Debit
(owners equity) COMMON STOCK decreases with a - Answers -Debit
(asset) PROPERTY, PLANT & EQUIPMENT decreases with a - Answers -Credit
(liability) LONG TERM DEBT increases with a - Answers -Credit
(owners equity) RETAINED EARNINGS increases with a - Answers -Credit
(liability) WAGES PAYABLE increases with a - Answers -Credit
On June 1, 2013 Cardullo's purchased a case of Vermeiren Cookie Spread as inventory
from its supplier for $200 and paid in cash. - Answers -Debit Inventory for $200
Credit Cash for $200
Suppose your company receives a large order from your best customer. Should this be
treated as revenue and recorded on your company's books? - Answers -No, Because
revenue is not considered earned until a product or service is delivered.
RETAINED EARNINGS increases with a - Answers -Credit
PROPERTY, PLANT & EQUIPMENT decreases with a - Answers -Credit
, NOTES RECEIVABLE increases with a - Answers -Credit
How would you record this transaction on a T-account - Answers -
Which of the following is TRUE regarding journal entries: - Answers -The total amount
debited must equal the total amount credited
Wise Guys Consulting issues an invoice for $9,000 to one of their clients for services
provided. The terms of the invoice call for payment 30 days after the invoice date. What
would be the impact at the date the services are completed and invoiced? - Answers -
The correct answer is to debit Accounts Receivable (an asset) for $9,000 as the
company now has the right to receive cash, and credit Revenue (part of owners' equity)
for $9,000 to recognize the revenue associated with the sale.
Like A Wrecking Ball is a demolition company. At the end of a project, they presented
their client with an invoice for $18,000 and immediately received a check for the full
amount. What is the journal entry to record this receipt? - Answers -The correct answer
is to debit Cash for $18,000 as the company now has the cash (remember--checks are
considered cash!) and credit Revenue for $18,000 to recognize the revenue associated
with the services provided.
Keep You in the Know (KYK) magazine received $120,000 cash in annual subscriptions
in December 2013. KYK is a monthly publication and all of these subscriptions
commence in January 2014. What entry should KYK make on December 31, 2013 to
record the payments received for these subscriptions? - Answers -The correct answer is
to debit Cash for $120,000 as the company now has the cash, and credit Deferred
Revenue for $120,000 as the company now has the obligation to provide services in the
future.
Friends International is an NGO that fosters greater cultural awareness and
understanding by arranging for people of different backgrounds to spend time in other
countries and cultures. On January 1, 2014 they purchase $80,000 of open airline
tickets in advance that can be used for a variety of destinations because they need the
flexibility and savings provided by such tickets. What entry should Friends International
make to record this purchase? - Answers -The correct answer is to debit Prepaid
Expense for $80,000 as the company now has the right to receive benefits from the
prepaid tickets and credit Cash for $80,000 as the company no longer has the cash.
Which of the following is FALSE regarding Accrual Accounting?
Revenues are recorded when earned
Accrual accounting follows the matching principle
Expenses are recorded as incurred - Answers -Transactions are only recorded when
there is an exchange of cash (This is true for Cash Basis Accounting, but not for Accrual
Accounting.)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Greaterheights. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75619 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now