Prepaid rent had a balance of $3,500 before adjustment and the office clerk recorded $2,000 rent expense for the period. How much is the amount of prepaid rent at the end of the period?
Which of the following is the correct journal entry to record one month of expired prepaid insurance?
Select one:
a. Increase prepaid insurance and decrease cash
b. Increase insurance expense and decrease prepaid insurance
c. Increase insurance expense and decrease cash
d. Increase prepaid insurance and decrease insurance expense
Which of the following is considered a long-term liability on a classified balance sheet?
Select one:
a. Accounts payable
b. Unearned Revenue
c. Interest Payable
d. None of the choices listed
A company has a $48,000 loan to be paid off over 24 months. Principal payments are $2,000 per month. The current and long-term portions of the loan after one month are:
Select one:
a. $24,000 current and $22,000 long-term
b. $22,000 current and $24,000 long-term
c. $24,000 current and $24,000 long-term
d. $48,000 current and $0 long-term
A good system of cash control should include:
Select one:
a. keeping cash until there is enough for a large deposit to reduce trips to the bank
b. keeping a number of pre-signed cheques to speed up the payment process
c. write cheques to "cash" instead of the payee's name
d. paying all disbursements by cheque
This is a separate bank account from the main bank account of the business that can be set up for payroll purposes:
Select one:
a. fluctuating bank account
b. imprest bank account
c. trust fund
d. petty cash