accounting 151

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the total of the figures on the left side of a cash account is $25,800. The total of the figures on the right side is $14100. the balance of this account is

$11,700 & would be recorded on the left side of the account

The cash account has a $15000 debit balance. A $5000 credit entry and a $7000 debit entry are posted to the account. the final balance of the cash account is

$17000 debit balance

if liabilities are $4000 & owner's equity is $15000 assets are...

$19000

Equipment costs $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight line method, monthly depreciation will be

$600

When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by

2

If the Trial Balance columns are not equal the error May have been caused by a transposition if the difference is divisible by...

9

The accounts payable account has a $3000 credit balance. An entry for the payment of $1000 on the amount owed is recorded and posted. The new balance of the accounts payable account is

A $2000 credit balance

If a journal entry that contains an error has already been posted

A correcting entry should be journalized and posted.

The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include

A debit to equipment for $500 a credit to cash for $100 and a credit to accounts payable for $400

On a worksheet the adjusting entry to account for depreciation of equipment consists of

A debit to the depreciation expense and a credit to accumulated depreciation

The journal entry to record the payment of a monthly utility bill would include

A debit to utilities expense & credit to cash

If assets are numbered from 1 00-199 which accounts would not be a number in the 100 series

Accounts Payable

Accounts Payable

Amounts that a business must pay in the future

On a worksheet the adjusted balance of the supplies account is extended to

Balance Sheet Debit column

The following statement is correct

Compound entries are recorded in the general journal

The adjusting entry to account for use of prepaid insurance consists of

Debit Insurance Expense; Credit Prepaid Insurance

Bertr and inc. purchased some shop equipment for $4500 in cash. By mistake the journal entry debited the office equipment account rather than the shop equipment account. What correcting entry would be necessary

Debit shop equipment $4500 credit office equipments $4500

Which of the following does not depict a transposition

It causes the difference between the debit total and the credit total to be divisible by 2

The following account is not a nominal account

Office supplies

when equipment is purchased for cash

One asset increases and another asset decreases

Which of the following would cause the trial balance to be out of balance

Placing the Accounts recieveable balance in the credit column

Which of the following would result in an error when preparing the trial balance

Placing the balance in prepaid rent in the credit column

Which of the following would cause the debit column and the credit column of the trial balance to be unequal

Placing the prepaid rent balance in the credit columns

Posting reference (PR) column of a journal is used to...

Record the number of the ledger account to which the info is posted

the following acount is not a permanent account

Salaries Expense

the following statement is NOT correct

Salvage value is computed by subtracting the accumulated depreciation from the cost of a long term asset.

Which of the following statements is not correct

The credit portion of a general journal entry is always recorded 1st

The following statement is correct

The general ledger contains the accounts that are used to prepare the financial statements

The ending balance of the capital account appears as a separate line item on what 2 statements

The statement of owner's equity and The balance sheet

the net income amount from the income statement is used as a line item on which statement

The statement owner's equity

When an entry is made in the General journal

They accounts to be credited Should be indented

On Nov. 25th, 2010 the company of paid $24000 rent in advance for a 6 month period. (December 2010 through May 2010) on Dec. 31st 2010 the adjustment for expire the rent would include

a $4000 credit to prepaid rent

The journal entry to record the sale of services on credit should include

a debit to Accounts Receivable and a credit to Fees Income

The Adjusting Entry to account for use of prepaid advertising consists of

a debit to Advertising Expense and a credit to prepaid advertising

The journal entry to record the performance of services for cash would include

a debit to cash and a credit to fees income

A firm purchased telephone equipment for cash. By mistake the person who recorded the transaction debited utilities expense instead of office equipment. the error with discovered after the data posted. the correcting entry should contain

a debit to office equipment and a credit to utilities expense

The adjusting entry to account for use of supplies consist of

a debit to supplies expense and a credit to supplies

on a Balance Sheet, accumulated depreciation-equipment is reported as...

a deduction from the cost of the equipment

When an entry is made in the general journal

accounts to be debited should be listed first

The account numbers are recorded in the posting reference column of the general journal...

after each amount is posted

On the worksheet the balance sheet columns should balance

after the net income amount is added to the Balance Sheet Credit column.

An expense by definition is not

an amount a business must pay in the future.

the adjustments on the worksheet

are recorded in the journal. and then posted to the general ledger accounts

Managerial Accounting

area of accounting that involves the preparation of internal reports for a firm's executives and the analysis of the data in these reports to aid in decision making

rent for future months is an...

asset

Debits are used to record increases in

assets & expenses

when equipment is purchased on credit

assets and liabilities increase

when the owner invests cash in a business

assets and owner's equity increase.

when the owner writes a company check to pay the firm's electricity bill...

assets decrease & expenses increase

when the owner withdraws cash for personal reasons

assets decrease & owner's equity decreases

which statement is a depiction of the accounting equation

balance sheet

On a worksheet the adjusted balance of the prepaid rent account is extended to

balance sheet debit column

If the prepaid expenses are not adjusted assets on the balance sheet will

be overstated

If long term assets are not adjusted expenses on the income statement will

be understated

The statement of owner's equity is calculated as follows

beginning capital + net income - withdrawals + additional investments = ending capital

Examples of Assets

cash & accounts receivable

If a trial balance is not in Balance (the debit and credit columns are not equal) a logical 1st step is to

check the addition of each column

publicly owned corporations

corporations whose stock can be bought and sold on stock exchanges and in over the counter markets

The journal entry to record the withdrawal of cash by Sue snow, the owner, to pay a personal utility bill would include

debit to Sue Snow, drawing & credit to cash

The journal entry to record the receipt of cash from credit clients on account would include

debit to cash & credit to accounts recievable

when revenue is earned from charge account sales the accountant

debits Accounts Receivable and credits a revenue account.

Financial Accounting Standards Board is responsible for...

developing generally accepted accounting principles

which of the following types of accounts normally have debit balances

expenses and assets

the current worth of an asset is its

fair market value

True or False: if an account has a debit balance in the trial balance section of the worksheet and there is credit entry in the adjustments section, the debit amount is subtracted when computing the balance to be shown in the adjusted trial balance section of the worksheet

false

which of the following groups contain only accounts thatnormallythat normally have credit balances.

fees income & John Smith capital

the balance sheet heading does not include

firm's address

The general ledger accounts are usually arranged in the following order

first the balance sheet accounts, then the income statement accounts.

When there are several Entries to one or both sides of an account the total of those entries is entered in pencil this is called

footing

corporation

form of business organization that is not affected by the withdrawal or death of an owner and can continue forever

securities & exchange commission

government agency that has final authority over financial reporting over publicly owned corporations

The following statement is correct

if an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed-out and the correct data written well it

The normal balance of an account is the ...

increase side of the account.

Debits are used to record

increases assets

Credits are used to record:

increases in liabilities and owner's equity.

financial affairs of a business & the financial affairs of the owners should be....

kept totally separate

owners & managers need financial info to...

make decisions

when charge customers pay cash to apply against their accounts the amount is recorded

on the left side of the cash account & right side of the accounts receivable

the balance sheet shows each of the following except

owner's investment

on a worksheet a net loss is

recorded in the balance sheet debit column

Which of the following increases owner's equity

revenue

The net income or net loss from the income statement is transferred to the...

statement of Owner's equity

On a worksheet the adjusted balance of the supplies expense account is extended to

the Income statement debit column

assets and liabilities are reported on

the balance sheet

On a worksheet the adjusted balance of a contra asset account would be extended to

the balance sheet credit column

on a worksheet the Adjusted balance of the accumulated depreciation account is extended to ...

the balance sheet credit column

owners are not personally responsible for the debts of the business if the form of business organization is....

the corporation

When a trial balance is in balance

the debit account balances equal the credit account balances

An accounting system that involves recording the effects of each transaction as debit and credit is

the double-entry system.

Owner's Equity is

the financial interest of the owner of a business

balance sheet shows

the financial position of a business at a given time

the financial statement that's prepared first is...

the income statement

On a worksheet the adjusted balance of the revenue account Fees income would be extended to

the income statement credit column

On a worksheet, the adjusted balance of the depreciation expense account is extended to

the income statement debit column

The income statement shows

the results of operations for a period of time

The account used to record increases in Owner's Equity from the sale of goods or services

the revenue account

If a transaction is properly analyze and recorded

the total amount debited will equal the total amount credited

Which of the following need not be completed separately if a worksheet is prepared

the trial balance

True or False : the cost of supplies used represents an operating expense of the business.

true

A net loss results

when expenses are greater than revenue.


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