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Study Resources (Accounting)

31) The owner withdrawing cash for personal use would: A) have no effect on assets. B) decrease owner's equity. C) decrease net income. D) increase assets. 32) An advertising bill received in the current period that will be paid the following period would: A) decrease liabilities. B) have no effect on liabilities. C) increase net income. D) decrease owner's.
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11) What is the qualitative characteristic that states that accounting records and statements are based on the most reliable data available so they are as accurate and useful as possible? A) Reliability B) Relevance C) Comparability D) Understandability 12) The relevant measure of value of the assets of a company that is going out.
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31) The entry to record the receipt of $650 on account for services previously rendered and billed would be: A) Accounts Receivable 650         Service Revenue 650 B) Service Revenue 650         Accounts Receivable 650 C) Cash 650         Accounts Receivable 650 D) Cash 650         Accounts Payable 650 32) Which of the following journal entries most accurately records an owner investing building and land into a.
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55) Given the following transactions for the The Warren Candle Company, prepare a trial balance as of August 31, 2013. a)  Owner, Wendy Warren invested $16,000 cash and equipment with a value of $7,500 into the business. b)  Purchased supplies on account, $350. c)  Rented office space paying one month's rent, $950. d)  Performed.
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Objective 2-1 1) The basic summary device of accounting is the account. 2) Notes receivable is a liability account. 3) A chart of accounts is a list of all of a company's accounts with their account numbers. 4) A chart of accounts is organized in order of the accounting equation, with assets first, followed.
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86) Assets and liabilities for Stan's Garage at the beginning and end of the current accounting period are as follows: January 1December 31 Total assets$450,000$690,000 Total liabilities$325,000$440,000 a) Determine net income or net loss for the current year. The owner did not invest any additional assets during the year and made no withdrawals. b).
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Objective 1-4 1) An organization, for accounting purposes, stands apart from other organizations and individuals as a separate accounting entity. 2) The reliability characteristic means that accounting information is free from error and bias, i.e., objective. 3) The going-concern assumption states an entity will remain in operation for only the next accounting period. 4).
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47) State the account to be debited and the account to be credited for the following transactions. Choose from the following list of accounts: cash, accounts receivable, supplies, equipment, land, accounts payable, note payable, capital, withdrawals, service revenue, utilities expense, and salary expense. a) Purchased equipment for cash. b) Performed services for.
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31) Borrowing money from a bank would: A) have no effect on owner's equity. B) decrease assets. C) decrease liabilities. D) increase revenues. 32) Earning a revenue and immediately collecting the related cash would: A) decrease total assets. B) have no effect on owner's equity. C) have no effect on total assets. D) increase owner's equity. 33) Earning a revenue.
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53) Journalize the following transactions for Redmond Storage and prepare a trial balance dated June 30, 2014. a) Owner, Roger Redmond invested $10,000 cash into the business. b) Rented an office and paid one month's rent, $1,100. c) Purchased $450 of supplies on account. d) Performed a service on account, $1,550. e) Paid $2,500 cash.
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21) If total liabilities are $98,000 and owner's equity is $150,000, total assets would be: A) $52,000. B) $248,000. C) $98,000. D) $300,000. 22) If owner's equity is $200,000 and total assets are $325,000, total liabilities would be: A) $200,000. B) $525,000. C) $125,000. D) $325,000. 23) Earning revenue on account: A) decreases assets. B) increases liabilities. C) decreases owner's equity. D) increases owner's.
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11) Assets are reported on the: A) income statement. B) income statement and balance sheet. C) statement of owner's equity. D) balance sheet. 12) Liabilities are reported on the: A) statement of owner's equity. B) income statement. C) statement of owner's equity and the income statement. D) balance sheet. 13) Cash investments by the owner are reported on the: A) balance.
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Objective 1-5 1) The accounting equation can be stated as assets + liabilities = owner's equity. 2) Assets are economic resources of a business expected to be of benefit in the future. 3) Owner's equity is often referred to as net assets and represents the residual amount of business assets that can be.
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Objective 2-2 1) A transaction always involves exactly two accounts. 2) The right-hand side of an account is called the increase side. 3) Assets, revenues, and withdrawals are all increased by debits. 4) Total debits must always equal total credits. 5) The right side of the account is the correct side. 6) The normal balance of.
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11) Liabilities are: A) insider claims to the business's assets. B) outsider claims to the business's assets. C) economic resources of a business. D) increases in owner's equity earned by delivering goods or services. 12) Owner's equity is an: A) insider claim to the business's assets. B) outsider claim to the business's assets. C) obligation to pay cash.
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Table 1-2   Following is a list showing the account balances of various assets, liabilities, revenues, and expenses for Tim's Landscaping at December 31, 2014, the end of its first year of operations. Accounts receivable $30,000 Accounts payable 7,000 Salary expense 9,000 Repairs expense 1,600 Truck 17,000 Equipment 12,600 Notes payable 16,400 Cash 13,600 Supplies expense 3,200 Service revenue 25,600 Gasoline expense 1,600 Salary payable 4,400 The owner, Tim Brown, invested $45,200 during the year and withdrew.
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Table 2-1 The following is a list of the accounts and their balances appearing in the ledger of Henry Garage Repairs as of December 31, 2014, the company's year end. The accounts are in alphabetical order and have normal balances.              Accounts payable$450 Accounts receivable 1,250 Cash 400 Equipment  .
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Objective 1-2 1) Rules of professional conduct for accountants apply to accountants working in public practice but not for accountants employed by companies. 2) Some rules of conduct apply to accountants in public practice and not to those employed in industry. 3) Audits are conducted by accountants internal to the organization so that.
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For the items listed below, choose the appropriate code letter to indicate whether the item is an asset, liability, owner's equity, revenue, expense or withdrawal item: AssetA LiabilityL Owner's EquityOE RevenueR ExpenseE WithdrawalW 19) Accounts receivable 20) Service revenue 21) Salary expense 22) Accounts payable 23) Office supplies 24) Cash 25) Note payable 26) Tim Brown, Capital 27) Building 28) Tim Brown, withdrawals 29) Land 30) Truck.
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21) The normal balance of cash is a ________ because it is a(n) ________ account. A) debit, expense B) credit, asset C) debit, asset D) credit, revenue 22) The normal balance of notes payable is a ________ because it is a(n) ________ account. A) debit, expense B) credit, revenue C) debit, asset D) credit, liability 23) The normal balance of.
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Objective 1-6 1) The balance sheet lists all the entity's assets, liabilities, and owner's equity as of a specific date. 2) An income statement is dated for a period of time such as "For the Year Ended December 31, 2014." 3) The income statement must be prepared before the statement of owner's equity.
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49) Prepare journal entries in good form for the following transactions. a)Owner, Mira Addington invested equipment valued at $4,500 and cash of $7,000 into the business. b)Purchased office supplies for cash, $550. c)Paid $700 for current month's rent of office space. d)Billed a client $2,000 for services rendered. e)Owner, Mira Addington withdrew $1,600 for personal.
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For the items listed below, choose the appropriate code letter to indicate whether the item is an asset, liability, or owner's equity item: AssetA LiabilityL Owner's EquityOE A) L B) A C) OE 71) Accounts receivable 72) Office supplies 73) Truck 74) Don Smith, Capital 75) Salary payable 76) Note payable 77) Cash 78) Land 79) Accounts payable 80) Office furniture .
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Table 1-2   Following is a list showing the account balances of various assets, liabilities, revenues and expenses for Tim's Landscaping at December 31, 2014, the end of its first year of operations. Accounts receivable $30,000 Accounts payable 7,000 Salary expense 9,000 Repairs expense 1,600 Truck 17,000 Equipment 12,600 Notes payable 16,400 Cash 13,600 Supplies expense 3,200 Service revenue 25,600 Gasoline expense 1,600 Salary payable 4,400 The owner, Tim Brown, invested $45,200 during the year and withdrew.
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92) For each of the following events, indicate the amount by which assets increased or decreased. a) Owner invested cash of $25,000 and equipment valued at $10,500 into the business. b) Purchased $600 of supplies on account. c) Borrowed $10,000 from the bank, issuing a note payable. d) Performed a service for $1,500 and.
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81) Provide the accounting equation. Net income for the current period$55,000 Ending owner's equity85,000 Beginning owner's equity49,000 Owner withdrawals19,000 Revenue for the current period96,000 83) Determine the expenses for the current period based on the following data: Net income for the current period$15,000 Ending owner's equity45,000 Beginning owner's equity40,000 Owner withdrawals10,000 Revenue for the current period90,000 84) Selected transactions for Sarah's Kitchen.
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51) Prepare journal entries in good form for the following transactions: a)Owner, Janet Simpson, invested equipment valued at $5,800 and cash of $5,000 into the business. b)Purchased office supplies for cash, $250. c)Paid $800 for current month's rent of office space. d)Billed a client $2,000 for services rendered. e)Owner, Janet Simpson, withdrew $1,000 for personal.
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89) Following is a list of events for Manning Cleaning for the month of April. Show the effects in dollars of these events on the accounting equation by completing the table below. April1Owner invested $10,000 cash and equipment valued at $25,000 into the business. 3Purchased $5,500 of equipment on account. 5Purchased $400 of supplies.
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37) On January 1, 2014, Brad Thomas invested $30,000 in Thomas Repairs. During 2014, Brad withdrew $17,000 for personal use. Thomas Repairs reports the following balances on December 31, 2014: Accounts receivable$ 9,000 Accounts payable4,200 Service revenue25,550 Land4,000 Rent expense4,500 Note payable3,800 Supplies900 Brad Thomas, Capital, Jan. 1, 20140 Salary expense9,650 Cash18,500 Brad Thomas, Withdrawals17,000 Prepare a balance sheet dated December 31,.
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23) List and define three generally accepted accounting concepts/principles discussed in Chapter 1. 24) Why has Canada, along with most other countries, adopted International Financial Reporting Standards? 25) Why were Accounting Standards for Private Enterprises (ASPE) implemented in Canada? .
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34) State whether the following accounts are assets, liabilities or owner's equity. a)________Equipment b)________Capital c)________Supplies d)________Accounts payable e)________Accounts receivable f)________Wages payable g)________Cash 35) State whether the following accounts would appear on an income statement, balance sheet, or statement of owner's equity. a)________Equipment b)________Owner's withdrawals c)________Utilities expense d)________Accounts payable e)________Accounts receivable f)________Service revenue g)________Cash h)________Beginning owner's equity Accounts receivable$ 9,000 Accounts payable4,200 Service revenue25,550 Land4,000 Rent expense4,500 Note payable3,800 Supplies900 Brad Thomas, Capital, Jan. 1,.
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11) A business purchases equipment for cash of $100,000. This transaction will cause: A) cash to be credited for $100,000. B) equipment to be credited for $100,000. C) capital to be credited for $100,000. D) capital to be debited for $100,000. 12) A business acquires equipment costing $10,000 by making a $2,000 down payment and.
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51) Which of the following transactions would increase an asset and increase owner's equity? A) payment of a note payable B) receipt of cash in payment of an account receivable C) owner investment of land into the business D) payment of the telephone bill 52) Which of the following transactions would both increase and decrease.
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  Matching Source Documents A) bank reconciliation B) purchase order C) bank cheque D) packing slip E) deposit slip 40) a company places an order with a vendor to purchase inventory 41) an order of materials is received from a vendor  via a delivery truck 42) the company accountant deposits the cash and cheques received at the bank 43) paid.
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53) State whether the account should be debited or credited and the normal balance of the account for the items listed below: Account Recorded as a debit or credit Normal balance of the account a) Increase in Accounts payable b) Increase in Salary expense c) Increase in Withdrawals d) Decrease in Capital e) Decrease  in Supplies f) Increase in Accounts receivable g).
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41) Purchasing a building for $150,000 by paying cash of $30,000 and obtaining a mortgage for $120,000 would: A) increase assets and liabilities by $150,000. B) increase liabilities by $120,000. C) increase liabilities by $30,000. D) decrease assets and liabilities by $120,000. 42) Receiving cash from a customer in payment of an account receivable would: A).
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41) Performing a service and immediately collecting the cash would: A) increase net income less than if the service had been performed on account. B) increase assets more than if the service had been performed on account. C) increase owner's equity less than if the service had been performed on account. D) have no.
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Objective 2-3 1) The purchase of office equipment for cash would increase assets and decrease liabilities. 2) A payment to a creditor would increase assets and decrease liabilities. 3) A journal is a chronological record of transactions. 4) The first step in the journalizing process is to identify the transaction and its data. 5) A.
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11) A chart of accounts is: A) a source document. B) another name for a trial balance. C) a list of all of the accounts of an organization and their related account numbers. D) prepared as the last step in analyzing transactions. 12) Which of the following is a revenue account? A) accounts receivable B) accumulated amortization C).
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Objective 1-3 1) A proprietorship can have two owners, so long as they are husband and wife. 2) In a corporation, the shareholders have liability for the actions of the corporation that extends beyond their investment. 3) All of the following are forms of business organizations except: A) proprietorship. B) partnership. C) corporation. D) governmental unit. 4) Which.
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11) Credit is a term representing: A) the right side of an account. B) an increase. C) a decrease. D) the left side of an account. 12) Which of the following groups of accounts have normal debit balances? A) assets, revenues, and owner withdrawals B) assets, expenses, and owner withdrawals C) assets, liabilities, and capital D) assets, revenues, and.
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51) Given the following transactions in the month of July for Kootenay Outdoor Adventures, prepare journal entries; and, a trial balance and balance sheet as of July 31, 2013. a)  Owner, Bill Thompson invested $35,000 cash and equipment with a value of $67,500 into the business. b)  Purchased supplies on account, $250. c) .
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