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Accounting Is An Information and Measurement System That
Accounting Is An Information and Measurement System That
Accounting Is An Information and Measurement System That
2.FastForward has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000
and investments by owners of $6,000. Its ending equity is:
A)
B)
C)
D)
E)
$223,000.
$240,000.
$268,000.
$274,000.
$208,000.
Answer: D
Calculation: $257,000 + $51,000 - $40,000 + $6,000 = $274,000
3. While in the process of posting from the journal to the ledger a company failed to post a $50
debit to the Office Supplies account. The effect of this error will be that: (
B
)
A)
B)
C)
D)
E)
5. If throughout an accounting period the fees for legal services paid in advance by clients are
recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record
the portion of those fees that has been earned is: ( C
)
A)
B)
C)
D)
E)