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Study Resources (Accounting)

11) Which of the following is a liability account? A) Accounts Receivable B) Cash C) Building D) Notes Payable 12) Which of the following is an asset account? A) Wages Payable B) Notes Payable C) Unearned Revenue D) Accounts Receivable 13) A customer's promise to pay in the future for services or goods sold is called a(n): A) Accounts Receivable. B) Accounts.
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17) Which of the following accounts decreases with a credit? A) Cash B) Smith, Capital C) Accounts Payable D) Notes Payable 18) Which of the following accounts increases with a debit? A) Cash B) Interest Payable C) Accounts Payable D) Smith, Capital 19) Which of the following accounts decreases with a debit? A) Accounts Receivable B) Notes Payable C) Cash D) Land 20) Which of.
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70) Henry Tax Planning Service bought production equipment for $9,600 on January 1, 2015. It has an estimated useful life of 5 years and zero residual value. Henry uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of.
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51) The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: AccountDebitCredit Cash$1,700 Accounts Receivable8,500 Supplies100 Equipment7,500 Accumulated Depreciation—Equipment$2,000 Accounts Payable1,200 Salaries Payable800 Unearned Revenue600 Tuttle, Capital3,400 Tuttle, Withdrawals2,300 Service Revenue40,000 Salaries Expense24,000 Supplies Expense2,300 Depreciation Expense—Equipment1,600      Total$48,000$48,000 Provide the closing entry for Service Revenue. 52) The following is the adjusted trial balance as of December 31, 2014 of Tuttle Photography: AccountDebitCredit Cash$1,700 Accounts Receivable8,500 Supplies100 Equipment7,500 Accumulated Depreciation—Equipment$2,000 Accounts.
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22) The following are the current month's balances for Toys Galore: Accounts Payable $8,000 Revenue 10,000 Cash 5,000 Expenses 1,750 Furniture 12,000 Accounts Receivable 14,000 Jones, Capital 8,250 Notes Payable 6,500 What is the total amount of debits for the trial balance? A) $26,000 B) $27,750 C) $31,000 D) $32,750 23) The following are the current month's balances for Toys Galore: Accounts Payable $8,000 Revenue 10,000 Cash 5,000 Expenses 1,750 Furniture 12,000 Accounts Receivable 14,000 Jones, Capital 8,250 Notes Payable 6,500 What is the net income for Toys Galore.
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40) The sum of all the depreciation expense recorded to date for a depreciable asset is called: A) book value. B) residual value. C) depreciation expense. D) accumulated depreciation. 41) Which of the following is a contra account? A) Depreciation Expense B) Accumulated Depreciation C) Unearned Revenue D) Earned Revenue 42) Accrued revenue is revenue that: A) has been collected and.
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21) A listing of all account titles in numerical order is called a(n): A) ledger. B) journal. C) income statement. D) chart of accounts. 22) Which of the following is an asset account? A) Cash B) Notes Payable C) Owner's Withdrawals D) Expenses 23) Which type of account is Owner's Capital? A) equity B) asset C) liability D) revenue 24) An amount owed but not.
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20) Unearned Revenue is classified as a(n) ________ account. A) liability B) asset C) revenue D) equity 21) Robert Rogers, CPA, performed accounting services for a client in December. A bill was mailed to the client on December 30. Roberts received the client's check by mail on January 5. Which of the following accounts should.
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11) Which of the following accounts are included in an income statement? A) Land, Salaries Payable B) Owner's Name, Capital, Owner's Contribution C) Furniture, Cash D) Service Revenue, Utilities Expense 12) Property, plant and equipment are categorized as: A) current assets. B) fixed assets. C) long-term investments. D) short-term investments. 13) Patents, copyrights, and trademarks are examples of: A) short-term investments. B).
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30) The entry to record depreciation includes a debit to: A) the Equipment account. B) the Cash account. C) the Accumulated Depreciation account. D) the Depreciation Expense account. 31) The entry to record depreciation includes a credit to: A) the Depreciation Payable account. B) the Cash account. C) the Accumulated Depreciation account. D) the Depreciation Expense account. 32) If an.
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8) The accountant of Skyscrapers Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense. Which of the following statements is true? A) The total liabilities will be overstated. B) The equity will be understated. C) The total assets will be overstated. D) The total assets will be understated. 9) The.
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16) The Interest Expense in the worksheet's unadjusted trial balance column is $3,000. Interest Expense in the income statement column is $7,000. Which of the following entries would have caused this difference? A) A $7,000 credit to Interest Expense in the worksheet's adjustments column B) A $7,000 credit to Interest Payable in.
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18) The accountant for Noble Jewelry Repair Services forgot to make an adjusting entry for Depreciation Expense for the current year. Which of the following is an effect of this error? A) Revenues are understated. B) Total assets are understated. C) Net income is overstated. D) Total liabilities are understated. 19) The accountant for Noble.
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21) Under which of the following categories would Accounts Payable appear? A) Long-term assets B) Current assets C) Long-term liabilities D) Current liabilities 22) Which of the following is a plant asset? A) Equipment B) Patents C) Trademark D) Accounts Receivable 23) The Notes Payable that are due within two years are classified as: A) current liabilities. B) current assets. C) long-term liabilities. D).
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15) Which of the following entries would be made because of the matching principle? A) Salaries Expense 1,000                Accounts Payable 1,000 B) Cash 1,000                Salaries Expense 1,000 C) Salaries Expense 1,000                Salaries Payable 1,000 D) Cash 1,000                Unearned Revenue 1,000 Learning Objective 3-3 1) Accrued revenues are the income that has been received but not earned. 2) Prepaid insurance is an asset account, and hence.
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8) The following extract was taken from the worksheet of Dutch Inc. for the year 2014. From the above information, determine the amount of the Rent Expense adjustment. A) $1,200 B) $800 C) $2,000 D) $1,500 9) The partial worksheet of Ruth Furniture follows Calculate and enter the amounts for the Adjusted Trial Balance columns. Learning Objective 3-7 1).
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11) Which of the following accounts does cash basis accounting ignore? A) Payables B) Revenue C) Cash D) Expenses 12) Two weeks earlier, a business had rendered services to one of its customers on account for which the payment was received today. Which of the following entries would be recorded if the company uses accrual.
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5) The accounting principle that ensures that all expenses are recorded when they are incurred during the period, and compares those expenses against the revenues of the period is called the ________ principle. A) comparison B) accrual C) matching D) revenue recognition 6) Which of the following accounting terms assumes that a business's activities can.
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50) In accounting, depreciation refers to the: A) method of spreading the cost of an asset over its useful life. B) method of declining the market value of an asset to its book value. C) method of estimation of an asset's current market value. D) process of sale of a used asset. 51) The Accumulated.
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8) Mitchell Florists had the following total assets, liabilities, and equity as of December 31. Assets $450,000 Liabilities 135,000 Equity 315,000 What is Mitchell's debt ratio as of December 31? A) 30% B) 70% C) 100% D) 43% 9) Which of the following factors is assessed using the debt ratio? A) expenses B) revenues C) risk D) income 10) Calculate the debt ratio using the following trial.
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8) Which of the following accounts will be included in a post-closing trial balance? A) Service Revenue B) Interest Payable C) Interest Expense D) Utilities Expense 9) Which of the following accounts will be included in a post-closing trial balance? A) Service Revenue B) Rent Expense C) Interest Expense D) Unearned Service Revenue 10) Which of the following accounts will.
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6) Which of the following statements is true of the worksheet? A) The worksheet is a ledger. B) The worksheet is a document used to summarize data to prepare the financial statements. C) The worksheet is a financial statement issued to the public to communicate the financial results of the company. D) The worksheet.
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31) The balances of select accounts of Sandra Company as at December 31, 2015 are given below: Notes Payable—short term $1,200 Salaries Payable 4,000 Notes Payable—long term 25,000 Accounts Payable 3,200 Unearned Revenue 2,000 Interest Payable 2,500 The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total current liabilities shown on the.
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4) Deborah Consultants had the following balances before passing adjusting entries in the books on December 31, 2015. Cash$6,000Deborah, Withdrawals$3,000 Accounts Receivable2,000Service Revenue10,600 Office Supplies1,800Salaries Expense4,000 Equipment15,000Rent Expense800 Accumulated Depreciation— Depreciation Expense— Equipment9,000Equipment1,500 Deborah, Capital15,000Supplies Expense500 Prepare the adjusted trial balance after considering these adjustments: a. Office Supplies used, $800. Assume the office supplies were initially recorded as an.
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  Learning Objective 4-1 1) In the balance sheet, assets are classified as either current or long-term depending on their liquidity. 2) Prepaid Rent is always classified as a long-term asset. 3) The operating cycle is the time span required for a business to repay its long-term liabilities. 4) A balance sheet prepared in the.
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11) An entity that buys goods and sells them to customers at a markup is a: A) merchandiser. B) service provider. C) manufacturer. D) producer. 12) Gross profit is calculated as the difference between net sales revenue and: A) purchases. B) cost of goods sold. C) cost of merchandise inventory. D) selling and administrative expenses. 13) The Gajet Store Inc..
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13) The Accounts Payable account is a temporary account. 14) The Salaries Payable account is a permanent account. 15) The Owner's Name, Capital account is a temporary account. 16) The Accumulated Depreciation account is a permanent account. 17) The Service Revenue account is a temporary account. 18) The Depreciation Expense account is a temporary account. 19).
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  Learning Objective 3-1 1) Under accrual accounting, transactions are recorded only when cash is received or paid. 2) The owner of Recipes.org purchased $2,000 of supplies on account. Under the accrual basis of accounting, no entry is made until the $2,000 is paid. 3) In cash basis accounting, revenue is recognized when cash.
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Learning Objective 4-5 1) The steps of the accounting cycle are followed throughout the accounting period. 2) The operating cycle is the process by which companies produce their financial statements for a specific period. 3) In an accounting cycle, an analysis of transactions is performed at the end of each accounting period. 4) The.
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12) The following contains information from the records of the Wellborn Engineers and Architects. Current Assets $74,000 Current Liabilities 44,000 Long-term Assets 95,000 Long-term Liabilities 60,000 Total Revenues 50,000 Total Expenses 30,000 Calculate the current ratio. A) 1.58 B) 2.32 C) 0.59 D) 1.68 13) The following contains information from the records of the Wellborn Engineers and Architects. Current Assets $74,000 Current Liabilities 44,000 Long-term Assets 95,000 Long-term Liabilities 60,000 Total Revenues 50,000 Total Expenses 30,000 Which of the following statements.
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Learning Objective 2-3 1) Source documents provide the evidence and data for accounting transactions. 2) Debits in the journal are always posted as debits in the ledger. 3) The process of transferring data from the ledger to the journal is called posting. 4) A journal entry under the double-entry system includes both debit and.
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33) Which of the following accounts will be closed by debiting the Income Summary account? A) Depreciation Expense B) Accounts Payable C) Service Revenue D) Accumulated Depreciation 34) Which of the following accounts will be closed by crediting the Income Summary account? A) Service Revenue B) Depreciation Expense C) Accounts Payable D) Accumulated Depreciation 35) Which of the following accounts.
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41) A business pays cash back to the owner. Which of the following accounts will be debited? A) Cash B) Smith, Withdrawals C) Accounts Payable D) Smith, Capital 42) The owner of a business withdrew cash for personal use. Which of the following accounts will be credited? A) Smith, Capital B) Smith, Withdrawals C) Cash D) Accounts Payable 43) An.
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  Learning Objective 5-1 1) A wholesaler is a merchandiser who buys merchandise from a manufacturer and sells the same to a retailer. 2) Hitech Inc., a small, local grocer, without optical scanning cash registers and computer systems, wants to introduce an inventory system to track its inventory. The perpetual inventory system is.
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51) Sharon Company reported the following transactions for September, 2015. A)Sharon started the business with a capital contribution of $25,000 cash. It was credited to Sharon, Capital. B)The business purchased office equipment for $11,500 for which $2,500 cash was paid and the balance was put on a note payable. C)Paid insurance expense of.
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