ACC 201 Exam 1

debit depreciation expense $3,000; credit accumulated depreciation $3,000

The Harris Company purchased equipment for $15,000 on January 1, 2020. Annual depreciation on the computer is computed to be $3,000. If financial statements are to be prepared on December 31, 2020, the company should make the following adjusting entry

balance sheet

Which of the following financial statements is concerned with the company at a point in time?

the mathematical equality of debits and credits after posting process

a trial balance

liability, credit

which of the following describes the classification and normal balance of the Unearned Rent Revenue account?

delivering

which of the following is NOT a principle type of business activity? (choices: delivering, operating, investing, financing)

investors

which of the following is NOT one of the three forms of business organization? (choices: investors, corporations, partnerships, proprietorships

bonds payable

which of the following is generally not classified as a current liability

analyze, journalize, post to the ledger

the usual sequence of steps in the transaction recording process is

paid and recorded in an asset account before they are used or consumed

prepaid expenses are

expected to be converted to cash or used in the business within one year or one operating cycle, whichever is longer

A current asset is

$2,500 debit

At February 1, 2022, the balance in Goebel Inc.'s supplies account was $3,500. During February, Goebel purchased supplies of $3,000 and used supplies of $4,000. At the end of February, the balance in the Supplies account should be

$100,000

Finney Company began the year with retained earnings of $100,000. During 2022, the company issued $80,000 of common stock for cash. The company recorded revenues of $740,000, expenses of $640,000, and paid dividends of $40,000. What was Finney's net income for the year of 2022.

$2.25

For 2022, Kuhl Co. reported net income of $36,000, net sales $400,000, and average shares outstanding of 16,000. No preferred dividends were paid. Earnings per share is

debit supplies expense, $4,500; credit supplies, $4,500

Greese Company purchases office supplies costing $7,000 and debited supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2,500 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

$460,000

Henson Company began the year with retained earnings of $380,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings balance at the end of the year?

debit rent expense, $4,000; credit, prepaid rent, $4,000

On July 1 the Fischer Shoe Store paid $24,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Fischer Shoe Store is

$3,000 debit balance

On May 1, Barclays Inc. reported at Cash account balance of $1,000. During the month, the total of the debit entries to the Cash account amounted to $2,000 and the total of the credit entries to the Cash account amounted to $1,800. At the end of May, Barclays' Cash account has a

a collection of the entire group of accounts maintained by a company

a ledger is

is owned by its stockholders

a business organized as a corporation

decreases assets and increases stockholders' equity

a dividend paid in cash

contra asset account

accumulated depreciation is a(n)

financing activity

borrowing money is an example of a(n)

property, plant, and equipment

buildings are classified on the balance sheet

current ratio

current assets divided by current liabilities is known as the

increase assets and decrease liabilities

debits

liabilities

debts and obligations of a business are referred to as

retained earnings + net income - dividends

ending retained earnings for a period is equal to beginning

revenues > expenses

net income results when

in the order in which they are expected to be converted into cash

on a classified balance sheet, companies usually list current assets

liquidity ratios

ratios that measure the income or operating success of a company for a given period of time are

when the performance obligation is satisfied

the revenue recognition principle dictates that revenues should be recognized in the accounting records

expenses with revenues

the expense recognition principle matches

increases assets and decreases liabilities

the payment of a liability

leaves total assets unchanged

the purchase of equipment (an asset) for cash

liability account

unearned revenue is classified as a(n)

debits accounts receivable and credits service revenue

when a company performs a service but has not yet received payment, it