HBX CORE EXAM QUESTIONS AND
ANSWERS 100% CORRECT
(liability) ACCOUNTS PAYABLE increases with a - ANSWER-Credit
(asset) CASH decreases with a - ANSWER-Credit
(asset) NOTES RECEIVABLE increases with a - ANSWER-Debit
(owners equity) COMMON STOCK decreases with a - ANSWER-Debit
(asset) PROPERTY, PLANT & EQUIPMENT decreases with a - ANSWER-Credit
(liability) LONG TERM DEBT increases with a - ANSWER-Credit
(owners equity) RETAINED EARNINGS increases with a - ANSWER-Credit
(liability) WAGES PAYABLE increases with a - ANSWER-Credit
On June 1, 2013 Cardullo's purchased a case of Vermeiren Cookie Spread as
inventory from its supplier for $200 and paid in cash. - ANSWER-Debit Inventory for
$200
Credit Cash for $200
Suppose your company receives a large order from your best customer. Should this
be treated as revenue and recorded on your company's books? - ANSWER-No,
Because revenue is not considered earned until a product or service is delivered.
RETAINED EARNINGS increases with a - ANSWER-Credit
PROPERTY, PLANT & EQUIPMENT decreases with a - ANSWER-Credit
NOTES RECEIVABLE increases with a - ANSWER-Credit
How would you record this transaction on a T-account - ANSWER-
Which of the following is TRUE regarding journal entries: - ANSWER-The total
amount debited must equal the total amount credited
Wise Guys Consulting issues an invoice for $9,000 to one of their clients for services
provided. The terms of the invoice call for payment 30 days after the invoice date.
What would be the impact at the date the services are completed and invoiced? -
ANSWER-The correct answer is to debit Accounts Receivable (an asset) for $9,000
as the company now has the right to receive cash, and credit Revenue (part of
owners' equity) for $9,000 to recognize the revenue associated with the sale.
ANSWERS 100% CORRECT
(liability) ACCOUNTS PAYABLE increases with a - ANSWER-Credit
(asset) CASH decreases with a - ANSWER-Credit
(asset) NOTES RECEIVABLE increases with a - ANSWER-Debit
(owners equity) COMMON STOCK decreases with a - ANSWER-Debit
(asset) PROPERTY, PLANT & EQUIPMENT decreases with a - ANSWER-Credit
(liability) LONG TERM DEBT increases with a - ANSWER-Credit
(owners equity) RETAINED EARNINGS increases with a - ANSWER-Credit
(liability) WAGES PAYABLE increases with a - ANSWER-Credit
On June 1, 2013 Cardullo's purchased a case of Vermeiren Cookie Spread as
inventory from its supplier for $200 and paid in cash. - ANSWER-Debit Inventory for
$200
Credit Cash for $200
Suppose your company receives a large order from your best customer. Should this
be treated as revenue and recorded on your company's books? - ANSWER-No,
Because revenue is not considered earned until a product or service is delivered.
RETAINED EARNINGS increases with a - ANSWER-Credit
PROPERTY, PLANT & EQUIPMENT decreases with a - ANSWER-Credit
NOTES RECEIVABLE increases with a - ANSWER-Credit
How would you record this transaction on a T-account - ANSWER-
Which of the following is TRUE regarding journal entries: - ANSWER-The total
amount debited must equal the total amount credited
Wise Guys Consulting issues an invoice for $9,000 to one of their clients for services
provided. The terms of the invoice call for payment 30 days after the invoice date.
What would be the impact at the date the services are completed and invoiced? -
ANSWER-The correct answer is to debit Accounts Receivable (an asset) for $9,000
as the company now has the right to receive cash, and credit Revenue (part of
owners' equity) for $9,000 to recognize the revenue associated with the sale.
