The Following Account Balances Are Taken from the December 31

question 134

Multiple Choice

The following account balances are taken from the December 31, 2015, financial statements of ABZ Advertising Company.The company uses accrual basis accounting.

The following activities occurred in 2016:
1.Performed advertising services on account, $55,000.
2.Received cash payments on account, $10,400.
3.Received deposits from customers for advertising services to be performed in 2017, $2,500.
4.Made payments to suppliers on account, $5,000.
5.Incurred $45,000 of operating expenses; $39,000 was paid in cash and $6,000 was on account and unpaid as of the end of the year.
-Use the information above to answer the following question.Which of the following is the journal entry that will be used to record activity #4?

• A) Debit Operating Expense and credit Cash for $5,000
• B) Debit Accounts Payable and credit Cash for $5,000
• C) Debit Accounts Payable and credit Operating Expense for $5,000
• D) Debit Cash and credit Accounts Payable for $5,000

Understand the concept and application of local and web applications.

Identify practices for securing personal information when using public or shared computers.

Determine the characteristics of secure and strong passwords.

Understand the significance of protecting sensitive personal information in physical and digital forms.

---

Definitions:

Ethical Rules Of Conduct

Guidelines that govern the ethical and moral behavior of individuals and organizations in various professions.

Legal Persons

Entities (such as individuals, companies, and organizations) that have legal rights and obligations, including the capacity to enter into contracts, sue, and be sued.

Federal And State Statutes

Laws enacted by the federal or state legislatures that govern various aspects of society and business.

Social Contract

A theory in political philosophy suggesting that individuals have consented, either explicitly or tacitly, to surrender some of their freedoms and submit to an authority in exchange for protection of their remaining rights.