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Study Resources (Accounting)

1.2   Recording transactions in the basic accounting equation. 1) Which of the following will be recorded in the owner's equity column as an increase? A) An exchange of assets B) The purchase of an asset on credit C) An investment by the owner D) A withdrawal by the owner 2) A sample of a liability account.
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11) Which type of account would be reported on the income statement? A) Assets B) Expenses C) Withdrawals D) Liabilities 12) Net income appears on which of the following financial reports? A) Balance sheet B) Income statement and statement of owner's equity C) Trial balance D) Balance sheet and income statement 13) What is the James Long Company's net income.
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21) Which accounts are affected when the company buys supplies on account? A) Assets and Capital increase. B) Liabilities and Capital increase. C) Assets and Liabilities increase. D) None of the above are correct. 22) Which accounts are affected when the company provides services to a cash customer? A) Assets and Capital increase. B) Liabilities and Capital.
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1.3   Seeing how revenue, expenses, and withdrawals expand the basic accounting equation. 1) The net income or net loss is calculated on the A) balance sheet. B) statement of owner's equity. C) income statement. D) none of these. 2) Owner's withdrawals A) decrease assets. B) increase expenses. C) increase liabilities. D) decrease withdrawals. 3) Go Blue Retail Store collected $12,000 of.
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38) Revenues generate an inflow of assets. 39) Supplies are assets that have a longer life than equipment. 40) The income statement is for a particular date. 41) The income statement is prepared first so the information can be used to prepare the statement of owner's equity. 42) A fiscal year end is not.
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1.4   Preparing an income statement, a statement of owner’s equity, and a balance sheet. 1) The increase or decrease in the owner's equity is reported on the A) income statement. B) statement of owner's equity. C) balance sheet. D) All of these are correct. 2) Which financial statement is prepared first? A) Statement of Owner's Equity B).
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98) The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate. a. Tyler invested $6,500 in the bike service from his.
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62) Record the following transactions in the basic accounting equation: a. Brian invests $15,000 cash to begin an accounting service. b. The company buys office furniture for cash, $600. c. The company buys additional office furniture on account, $300. d. The company makes a payment on the office furniture, $200. Brian's Accounting Service      ASSETS =.
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97) A chart of accounts is below. Following is a series of transactions. Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided. 111 Cash312 C. Webster, Withdrawals 112 Accounts Receivable411 Delivery Fees Earned 121 Delivery Equipment511 Salaries Expense 211 Accounts Payable512.
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25) Below is the Trial Balance for Benson Company for June 30, 2014. Trial Balance June 30, 2014 DebitCredit Cash370 Accounts Receivable1,600 Office Equipment 900 Accounts Payable770 Benson, Capital1,500 Benson, Withdrawals500 Service Fees2,730 Advertising Expense600 Salaries Expense630 Utilities Expense400    Totals5,0005,000 Required: Prepare 1.An Income Statement for the month ended June 30, 2014 2.A Statement of Owner's Equity for the month ended June 30, 2014 .
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13) The following is a list of accounts and their balances for Myra's Company for the month ended May 31, 2013. Prepare a trial balance in good form. Cash$1,380Myra, Withdrawals$980 Accounts Payable500Accounts Receivable1,030 Office Equipment2,260Service Fees1,835 Myra, Capital3,965Rent Expense650 14) The following is a list of accounts and their balances for Benson Company for the.
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11) If 'Ol Fashioned Toys' revenues are greater than its expenses during the accounting period A) assets will increase more than liabilities. B) liabilities will increase more than assets. C) the business will incur a loss. D) the business will earn a net income. 12) Carrie billed her legal clients $5,000 for legal work completed.
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111) The following transactions occurred during January for Cindy's Designer Service: a. Cindy invested $5,000 in the design service from her personal savings account. b. Bought office equipment for cash, $1,000. c. Performed designer service for a customer on account, $800. d. Telephone expense due but unpaid, $80. e. Collected $100 from customer in transaction.
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95) Identify whether a debit or credit would be correct for each of the following account changes. Use a Dr. (debit) or Cr. (credit) in the space provided. ________ 1. Increase Delivery Van ________ 2. Decrease Accounts Receivable ________ 3. Decrease Accounts Payable ________ 4. Increase Salaries Expense ________ 5. Increase Service Fees ________ 6. Decrease.
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94) Identify the normal balance for each of the following accounts by placing a Dr. (debit) or a Cr. (credit) in the space provided. ________ 1. Computer ________ 2. M. Bryant, Withdrawals ________ 3. M. Bryant, Capital ________ 4. Legal Fees ________ 5. Cash ________ 6. Accounts Receivable ________ 7. Accounts Payable ________ 8. Rent Expense ________ 9. Office.
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55) The three elements that make up a balance sheet are assets, liabilities and expenses. 56) The accounting equation states that total assets must always equal total liabilities plus owner's equity. 57) The parties that have claims against the assets of the business are called creditors and owners. 58) The ending capital figure.
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17) Use the following information to prepare 1) an income statement, 2) a statement of owner's equity, and 3) a balance sheet for the month ended March 31, 2013 for Bolthouse Company. J. Bolthouse, Capital (beg.) $2,000 Revenue 900 Expenses 600 Withdrawals 150 Cash 3,000 Equipment 1,000 Accounts Receivable 150 Accounts Payable 2,000 18) Prepare the financial statements for.
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45) Frances Chang Company completes the following transactions a) Ms. Chang invests $3,500 cash in her company. b) The company purchases equipment on account, $800. c) The company purchases additional equipment for cash, $300. d) The company makes a payment on account for the equipment, $500. Required: Record the above transactions in the basic accounting.
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108) Identify the normal balance for each of the following accounts by using a Dr. (debit) or a Cr. (credit). __________ 2. R. Johns, Withdrawals __________ 3. R. Johns, Capital __________ 4. Accounting Fees __________ 5. Cash __________ 6. Accounts Receivable __________ 7. Accounts Payable __________ 8. Rent Expense __________ 9. Equipment __________10. Advertising Expense .
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21) How does the purchase of equipment on account affect the accounting equation? A) Assets increase; liabilities decrease. B) Assets increase; owner's equity increases. C) Assets increase; liabilities increase. D) Liabilities increase; owner's equity decreases. 22) Mary invested cash in her new business. What effect will this have? A) Increase an asset and increase a liability B).
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11) The Owner's Equity of Logan's Company is equal to one-quarter of the total assets. Liabilities equal $30,000. What is the amount of Owner's Equity? A) $40,000 B) $10,000 C) $30,000 D) None of these answers are correct. 12) This form shows the financial position of a business on a particular date. A) Income Statement B) Accounting.
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110) Below is a chart of accounts. Following is a series of transactions. Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided. 1100 Cash3200M. Martin, Withdrawals 1120Accounts Receivable4100Legal Fees 1210Computer Equipment5110Salaries Expense 2100 Accounts Payable5120Rent Expense 3100 M. Martin, Capital5130Advertising Expense DebitCreditTransaction ____________________1.Purchased computer.
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31) Katelyn purchased $10,000 of new electronic equipment for her DJ Company on account. The effect on the basic accounting equation was to A) decrease Cash $10,000 and increase Equipment $10,000. B) increase Equipment $10,000 and increase Accounts Payable $10,000. C) decrease Cash $10,000 and increase Accounts Payable $10,000. D) increase Cash $10,000 and.
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8) Cash is an asset that would appear on the balance sheet 9) The income statement is a financial statement showing business results in terms of revenues and expenses. 10) Statement of owner's equity shows the change in capital. 11) The statement of owner's equity shows assets, liabilities and capital. 12) Total assets are.
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99) Gas Expense____________________________________ 100) Automobile____________________________________ 101) Cleaning Equipment ____________________________________ 102) Cleaning Expense____________________________________ 103) Cleaning Fees Earned____________________________________ 104) Salaries Expense____________________________________ 105) Installation Fees Earned____________________________________ 106) Lawn Care Fees Earned____________________________________ 107) Office Supplies____________________________________ .
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19) Prepare a balance sheet in proper form for Brampton Cleaners for the period ended December 31, 2014. Use the following information: Accounts Payable $2,500 Accounts Receivable 800 Cash 2,200 Equipment 4,000 K. Carson, Capital? 20) Determine the ending capital balance of a business which had a beginning capital balance of $1,970, additional investments of $530,.
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3.1    Journalizing: analyzing and recording business transactions into a journal. 1) The process that begins with recording business transactions and includes the completion of the financial statements is the A) calendar year. B) natural business years. C) fiscal year. D) accounting cycle. 2) The twelve-month period a business chooses for its accounting period is a(n) A) calendar.
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96) Below is a chart of accounts. Following is a series of transactions. Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided. 111 Cash312 R. Andrews, Withdrawals 112 Accounts Receivable411 Service Fees 121 Office Equipment511 Salaries Expense 211 Accounts Payable512 Rent.
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47) Katie's Wedding Planning Service completed the following transactions: a. Billed clients for service, $1,250. b. Completed work for clients who paid $500 cash. c. Received a bill for utilities to be paid later, $120. d. Collected cash on account from clients, $700. e. Paid the amount due for utilities. f. Withdrew $500 cash for personal.
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2.2   Recording transactions in T accounts according to the rules of debit and credit. 1) An accounting device used to record increases and decreases in individual assets, liabilities, capital, revenue, expenses, and withdrawals is a(n) A) chart of accounts. B) account. C) trial balance. D) footing. 2) A compound entry is A) a transaction involving more than.
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2.3   Preparing a trial balance. 1) Which of the following is not a financial statement? A) Balance sheet B) Income statement C) Statement of owner's equity D) Trial balance 2) A list of all the accounts from the ledger with their ending balances is called a A) normal balance. B) trial balance. C) chart of accounts. D) footing. 3) Which of.
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2.4   Preparing financial statements from a trial balance. 1) Which type of account would not be reported on the income statement? A) Revenue B) Expenses C) Withdrawals D) None of these answers are correct. 2) Accounts Payable would appear on which financial statement? A) Balance sheet B) Income statement C) Owner's equity statement D) None of these answers are correct. 3).
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109) Identify whether a debit or credit would be correct for each of the following account changes. Use a Dr. (debit) or Cr. (credit). ____Dr___0. Increase Cash __________ 1. Increase Equipment __________ 2. Decrease Accounts Receivable __________ 3. Decrease in Accounts Payable __________ 4. Increase in Salaries Expense __________ 5. Increase in Service Fees __________ 6. Decrease.
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78) Withdrawals increase on the debit side of the account. 79) After deciding which accounts are affected, the next step in analyzing a transaction is to determine to which categories the accounts belong. 80) Equipment is an example of a liability. 81) A compound entry is when more than one transaction occurs. 82) When.
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11) The general ledger A) is the book of original entry. B) is the book of final entry. C) lists the transactions in chronological order. D) is before the general journal. 12) The process of initially recording business transactions in a journal is called A) sliding. B) posting. C) journalizing. D) transposing. 13) When recording a transaction in a journal,.
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113) Explain the difference between expenses and withdrawals. 114) Following are the five steps in analyzing business transactions. Apply the five steps in analyzing the following transaction: Paid the monthly telephone expense, $100. 1. Which accounts are affected? 2. To which categories do the accounts belong? 3. Are the accounts increasing or decreasing? How much? 4..
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