Accounting 200 Chapters 2-4

In a classified balance sheet, assets are usually classified as

In a classified balance sheet, assets are usually classified as

In which balance sheet section would trademarks be reported?

Intangible assets

Which accounts normally have credit balances?

Revenues, liabilities, and retained earnings

A current asset is

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

Collection of a $670 Accounts Receivable

increases an asset $670; decreases an asset $670.

A revenue account

is increased by credits.

Buildings are classified on the balance sheet as

property, plant, and equipment.

During January 2022, Whispering Winds Corp. paid a cash dividends of $1840. This transaction

reduces stockholders' equity by $1840.

In 2017, Costello Company performs work for a customer and bills the customer $10,000; it also pays expenses of $3,000. The customer pays Costello in 2018. If Costello uses the accrual-basis of accounting, then Costello will report

revenue of $10,000 in 2017.

The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the

revenue recognition principle.

The classification and normal balance of the Dividends account is

stockholders' equity with a debit balance.

Liabilities are generally classified on a balance sheet as

current liabilities and long-term liabilities.

In the first month of operations, the total of the debit entries to the Cash account amounted to $5180 and the total of the credit entries to the Cash account amounted to $2960. At the end of the month, the Cash account has a

$2220 debit balance.

Which accounts normally have debit balances?

Assets, expenses, and dividends

Which of the following correctly identifies normal balances of accounts?

Assets=Debit Liabilities=Credit Common Stock=Credit Revenues=Credit Expenses=Debit

Which of the following is generally not classified as a current liability?

Bonds Payable

Which one of these statements about the accrual-basis of accounting is false?

Companies record revenue only when they receive cash, and record expense only when they pay out cash.

Which of the following would not be classified as a long-term liability?

Current maturities of long-term debt

An investment by the stockholders in a business increases

assets and stockholders' equity.

If services are rendered for cash, then

assets will increase.

On a classified balance sheet, short-term investments are classified as

current assets

When a company receives a utility bill but will not pay it right away, it should

debit Utilities Expense and credit Accounts Payable.

A company that receives money in advance of performing a service

debits Cash and credits Unearned Service Revenue.

When a company has performed a service but has not yet received payment, it

debits accounts receivable and credits service revenue.

Adjustments for unearned revenues

decrease liabilities and increase revenues.``

The payment of a liability

decreases assets and liabilities.