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    1. What is the meaning of the term revenue? Does the receipt of cash by a business indicate that revenue has been earned? Explain.

    2. What is the meaning of the term expenses? Does the payment of cash by a business indicate that an expense has been incurred? Explain.

    3. The Milan Company, owned by Robert Gennaro, completed its first year of operation on December 31, 1999. State the proper heading for the first annual income statement.

    4. Does a well-prepared income statement provide an exact measurement of net income for the period, or does it represent merely an approximation of net income. Explain.

    5. How does depreciation expense differ from other operating expenses?

    6. Assume that a business acquires a delivery truck at a cost of $4,800. Estimated life of the truck is four years. State the amount of depreciation expense per year and per month. Give the adjusting entry to record depreciation on the truck at the end of the first month, and explain where the accounts involved would appear on the financial statements.

    7. Explain the rules of debit and credit with respect to transactions recorded in revenue and expense accounts.

    8. Supply the appropriate term (debit or credit) to complete the following statements:
    a. The owner’s equity account, income summary account, and revenue accounts are increased by _________ entries.
    b. Asset accounts and expense accounts are increased by ________entries.
    c. Liability accounts and owner’s equity accounts are decreased by ________ entries.

    9. Supply the appropriate term (debit or credit) to complete the following statements.
    a. When a business is operating profitably, the journal entry to close the Income Summary account will consists of a ________to that account and a _______ to the owner’s equity account.
    b. When a business is operating at a loss, the journal entry to close the Income Summary account will consists of a _______ to that account and a _________ to the owner’s capital account.
    c. The journal entry to close the owner’s drawing account consists of a _____________ to that account and a ____________ to the owner’s capital account.

    10. All ledger accounts belong in one of the following five groups: Asset, liability, owner’s equity, revenue, and expense. For each of the following accounts, state the group in which it belongs. Also indicate whether the normal balance would be a debit or credit.
    a. Fees earned
    b. Notes payable
    c. Telephone expense
    d. William Nelson, Drawing
    e. Building
    f. Depreciation expense
    g. Accumulated depreciation: Building

    จากคุณ : หวานแหว๋ว - [ 23 ก.ย. 45 12:26:57 A:203.149.32.4 X: ]

 
 



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