Questions
22108 Accounting and Accountability - Spring 2025 2. PRACTICE Final Exam - 22108 - Spring 2022
Multiple dropdown selections
Hangry Donuts hires Lara-Ann to handle corporate orders as the business grows. Lara-Ann negotiates a deal to have their donuts in the breakfast buffet at the Four Points Sheraton Central Park hotel - just opposite UTS on George Street. The hotel agrees to pay $500 in advance each month for donuts. Hangry Donuts receives the first payment. Select the flows and accounts that the business would use to record this transaction. Please choose a drop-down selection for every box. Assets = Liabilities + Equity [ Select ] Accounts payable Unearned revenue Inventory Cash Raw materials Accounts receivable Account not required [ Select ] Cash Revenue Bank loan Unearned revenue Account not required [ Select ] Cash Expenses Revenue Cost of sales Unearned revenue Account not required [ Select ] -500 +500 0 [ Select ] -500 +500 0 [ Select ] -500 +500 0
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Step-by-Step Analysis
We need to map the transaction to the appropriate accounting flows and accounts, reflecting that Hangry Donuts receives cash in advance for donuts to be delivered over time.
Option analysis for the first dropdown (Assets = Liabilities + Equity): The correct asset to increase when the hotel pays in advance is Cash, since Hangry Donuts is receiving money.
Option analysis for the second dropdown (Lia......Login to view full explanationLog in for full answers
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Hangry Donuts hires Lara-Ann to handle corporate orders as the business grows. Lara-Ann negotiates a deal to have their donuts in the breakfast buffet at the Four Points Sheraton Central Park hotel - just opposite UTS on George Street. The hotel agrees to pay $500 in advance each month for donuts. Hangry Donuts receives the first payment. Select the flows and accounts that the business would use to record this transaction. Please choose a drop-down selection for every box. Assets = Liabilities + Equity [ Select ] Accounts payable Unearned revenue Inventory Cash Raw materials Accounts receivable Account not required [ Select ] Cash Revenue Bank loan Unearned revenue Account not required [ Select ] Cash Expenses Revenue Cost of sales Unearned revenue Account not required [ Select ] -500 +500 0 [ Select ] -500 +500 0 0
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