A Business Has the Following Transactions: the Business Is Started

question 134

Multiple Choice

A business has the following transactions: The business is started by receiving $25,000 from the owner. The business purchased $700 of office supplies on account and $2,500 of furniture on account. The business rendered services to various clients totaling $10,000 on account. It paid $5,000 as salaries expense and $6,000 as rent expense. It paid $1,000 to a supplier for the office supplies purchased earlier. It collected $3,000 from one of its clients for services rendered earlier in the month. At the end of the month, all journal entries are posted to the ledger. The Accounts Payable account will appear as:

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Definitions:

Voting Shares

Voting shares that enable the owner to have a say in corporate affairs, such as the selection of the board of directors.

Held For Sale

Refers to assets that a company intends to sell within the next year, often reported separately on financial statements.

Investment In Associate

An investment in another company in which the investor has significant influence but not full control, usually reflected in the ownership of 20% to 50% of the voting stock.

Highly Probable

A term indicating a high chance or likelihood that a specific event or outcome will occur.