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.
