Accounting: Recording Business Transactions Quiz

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10 Questions

What is the total amount Vaughn deposits into the new business account for Cookie Creations?

$450

How much does Vaughn pay for advertising?

$60

What is the worth of the baking equipment that Vaughn invests in the business?

$270

How much cash does Vaughn's grandmother lend her for the business?

$1,800

What does Vaughn initially deposit into her personal bank account?

$470

How much does Vaughn spend on baking supplies?

$115

What is the purpose of preparing journal entries for the November transactions?

To record the financial effects of the transactions in the accounting system

What is the significance of indenting credit account titles when entering journal entries?

It helps to organize and visually distinguish debit and credit entries

When is it appropriate to select 'No Entry' for the account titles in a journal entry?

When there are no financial effects resulting from the transaction

What is the purpose of recording a down payment in advance for a future class?

To ensure accurate recognition of revenue in the period when the service is provided

Test your knowledge of accounting by answering questions about recording business transactions. This quiz is based on the activities of Vaughn Koebel and her business 'Cookie Creations'.

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