NEEDS ANSWERES ASAP Question 17 A three column form of account is so named becau

Question

NEEDS ANSWERES ASAP

Question 17

A three column form of account is so named because it has columns for

debit, credit, and balance.

debit, credit, and date.

debit, credit, and account name.

debit, credit, and reference.

3 points

Question 18

The first step in designing a computerized accounting system is the creation of the

general ledger.

general journal.

trial balance.

chart of accounts.

3 points

Question 19

Chik Chik Company showed the following balances at the end of its first year:

Cash

$ 6,000

Prepaid insurance

$ 9,400

Accounts receivable

$ 7,000

Accounts payable

$ 5,600

Notes payable

$ 8,400

Common stock

$ 2,800

Dividends

$ 1,400

Revenues

$ 44,000

Expenses

$ 35,000

What did Chik Chik Company show as total credits on its trial balance?

$51,400

$60,800

$62,200

$70,200

3 points

Question 20

Which of the following time periods would not be referred to as an interim period?

Monthly

Quarterly

Semi-annually

Annually

3 points

Question 21

Crue Company had the following transactions during the calendar year:
Sales of $4,800 on account
Collected $2,000 for services to be performed in the following year
Paid $1,625 cash in salaries
Purchased airline tickets for $250 in December for a trip to take place in the following year
What is Crue's current net income using accrual accounting?

$2,925.

$3,175.

$4,925.

$5,175.

3 points

Question 22

If an adjusting entry is not made for an accrued revenue,

revenues will be overstated.

assets will be overstated.

stockholders' equity will be understated.

expenses will be understated

debit, credit, and balance.

debit, credit, and date.

debit, credit, and account name.

debit, credit, and reference.

Explanation / Answer

Since, there are multiple questions, the first four (17 to 20) have been answered.

______________

Question 17)

Debit, credit, and balance (which is Option A)

___________

Explanation:

A 3 column form of account has three sections - debit, credit and balance. The balance column represents the amount after adjustment for each debit or credit entry in the relevant account. A debit entry in an asset/expense account would increase the balance and a credit would decrease the balance. Similarly, a debit entry in a liability/revenue account would decrease the balance and a credit would increase the balance.

___________

Question 18)

Chart of accounts (which is Option D)

___________

Explanation:

The first and foremost step in designing any accounting system would be to identify various accounts which form part of the general ledger. It is so because various accounting transactions would get reported in these accounts.

___________

Question 19)

The total value of credits that would be reported in the trial balance would include all accounts relating to revenues, gains, common stock and liabilities. The formula for calculating total credits is given below:

Total Credits in Trial Balance = Accounts Payable + Notes Payable + Common Stock + Revenues

___________

Using the information provided in the question, we get,

Total Credits in Trial Balance = 5,600 + 8,400 + 2,800 + 44,000 = $60,800 (which is Option B)

___________

Question 20)

Annually (which is Option D)

___________

Explanation:

Any time period which is less than 1 year or 12 months is referred to as interim period. Therefore, quarterly, monthly and semi-annually time periods will be treated as interim periods.

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