Accounting - Study Mode
[#1241] Agreement of the trial balance may not indicate that:
Correct Answer
(D) all ledger accounts have been correctly posted
[#1242] Which of the following accounts can be classified as a real account?
Correct Answer
(D) Cash account
Explanation
Solution: Cash account can be classified as a real account. A real account is an account that retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity.
[#1243] Capital increases if ______ increases
Correct Answer
(D) Revenue
Explanation
Solution: Capital increases if revenue increases. The extent to which an increase in revenue will affect company's working capital depends on how efficiently business operates.
[#1244] Capital of a business decreases if there is an increase in
Correct Answer
(A) Drawings
Explanation
Solution: Capital of a business decreases if there is an increase in Drawings. Drawing is always deducted from capital.
[#1245] Net income equal to Revenues minus
Correct Answer
(C) Expenses
Explanation
Solution: Net income equal to Revenues minus Expenses. Revenue is the income generated before any expenses are taken out. Therefore, when a company is said to have "top-line growth," the company's revenue is growing. Revenue is also called net sales which is revenue minus any returns of purchased merchandise.