A Business Has the Following Transactions: the Business Is Started

question 5

Multiple Choice

A business has the following transactions: The business is started by receiving $20,000 from the owner. The business purchases $500 of supplies on account. The business purchases $2,000 of furniture on account. The business renders services to various clients totaling $9,000 on account. The business pays out $2,000 for Salary expense and $3,000 for Rent expense. The business pays $500 to supplier for the supplies purchased earlier. The business collects $1,500 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 follows:

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Definitions:

Synclines

Downward-curving folds in sedimentary strata, opposite of anticlines, which can also be indicators of oil and gas deposits.

Cleavage

In geology, the tendency of crystalline materials to split along definite crystallographic structural planes, creating flat, shiny surfaces.

Monocline

A geological feature where sedimentary layers are tilted or bent along a single axis.

Strike-Slip Fault

A type of fault where the movement is predominantly horizontal, caused by shear stress, often resulting in earthquakes.