A business purchased supplies for cash. The business will decrease its Cash account and: increase its Supplies account. decrease its Supplies account. increase its Supplies Payable account decrease stockholder\'s equity by recording Supplies Expense for the amount of the payment. Receiving cash from a customer to pay for a previously recorded account receivable will: increase total assets. have no effect on total assets. decrease liabilities. increase stockholder\'s equity. In January, Pizza Company bought pizza ingredients on account for $100, with payment due to the supplier in 90 days. The pizza ingredients were used for pizzas made and delivered in January. In which month should Pizza Company record the cost of the pizza ingredients as an expense? February March January April The entry to record the payment of accounts payable: decreases assets. increases expenses. increases liabilities. increases stockholder\'s equity. When employees work for a company in June but are not paid until July, the June financial statements will include ______ on the: rev: 08_22_2015_QC_CS-20333 Salaries and Wages Payable; balance sheet Prepaid Salaries and Wages; income statement Salaries and Wages Payable; income statement Prepaid Salaries and Wages; balance sheet Expenses include all of the following except: using supplies. making a payment on account. paying for electricity used during the current period. paying wages for production workers for work performed during the current period.
Answers:
1. Supplies account shall be increase and cash account shall be decrease.
suplies account will be debited and cash account will be credited.
2. recieving of cash from debtor doesnot give any effect to balalbce of total assets as one is debiting i.e. cash account and other is crediting i.e. account recievable account.
3. supplies has been recived in month of january as well as the invoice also raise in jan month for january month, whereas payment is pending for 90days. also, according to matching concept, the revenue also generated in Jan month again the expense. hence, the expense shall be deboited in month of January only.
4. the payment of liabilities or account payable will decrease balnace in cash account or bank account hence it will decrease the assets.
5. if salary or wages are outstanding for the period then it shall be record as salaries and wages account payable under the head of current liabilities in the balance sheet.
6. Expense doesnt include the payment made for liabilities as during booking of any liability the expense had already booked at that time. hence, making payment on account shall not be treated as expense account.
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