ACCOUNTING MIDTERM
Balance sheet
wages payable - what finance sheet does it belong to
1
Transactions are analyzed and recorded in a journal
COMS
Biggest expense
Cash, Accounts Receivable, Supplies, Land
Order of Assets on Balance Sheet pt 1
Accounts payable
Order of Liabilities on balance sheet pt 1
Owners Capital, Total liabilities and owners equity
Order of Owners Equity on Balance Sheet pt 1
debit to Advertising Expense and a credit to Cash
Paid advertising expense 50
Debit Supplies, Credit Cash
Paid cash for supplies, $1,350.
False
Prepaid expenses is an example of an expense
balance sheet
Accounts Payable - what finance statement does it belong to
depreciation expense
All of the following accounts will appear on the post-closing trial balance except
7
An adjusted trial balance is prepared
5
An optional end-period spreadsheet is prepared
3
An unadjusted trial balance is prepared
in the same period as the related revenue
As per the matching principle, the expenses incurred in generating revenue are recorded _
LIFO
Last In, First out
Entrepreneurship
Not a business entity
Balance Sheet
Office Equipment - what finance sheet does it belong to
Debit supplies credit accounts payable
On November 26, Civic Company purchased $1,200 of supplies on account. The journal entry to record this transaction will include
analyze and record the transactions in the journal
The first step of the accounting cycle is to _____.
capital
The following accounts are closed at the end of the accounting period except _____
Accounts Receivable, Fees Earned
The journal entry for an accrued revenue (fees earned) includes a debit to _____ and a credit to ______
Debit owners capital credit owners drawing
The journal entry required to close the Drawing account is _____.
prepare a post-closing trial balance
The last step of the accounting cycle is to _____.
2
Transactions are posted on ledger
revenue
Which account will not appear on the post-closing trial balance?
Owner's Equity
Which element of the accounting equation represents the rights of owners?
Unadjusted trial balance, adjusting entries, adjusted trial balance, financial statements
Which of the following shows the correct order of events?
owners equity
beginning capital - what finance statement does it belong to
False
closing entries close some accounts on balance sheet
False
paying an accounts payable increase assets and decrease liabilities
4
Adjusted data are assembled and analyzed
FIFO
First in First Out
debit cash, credit accounts receivable
Received cash from customers on account, $15,850.
10
A post-closing trial balance is prepared
FALSE
A service business provides products to people
6
Adjusting entires are journalized and posted to ledger
Merchandise. inventory, A/P, A/P, cash
Buyer Journal
False
Cash withdrawals decrease assets and increase equity
9
Closing entires are journalized and posted to ledger
Service
debit accounts receivable, credit fees earned
Fees earned and billed to customers for the month, $49,840.
8
Financial statements are prepared
Debit rent expense and credit cash
Journal Entry Paid rent for the month 100
true
Gains resulting from the sale of fixed assets are reported as "other revenue" on the multiple-step income statement.
Debit Office equipment Credit Accounts Payable
Purchased office equipment on account, $9,200.
Income Statement
Rent Revenue - what finance statement does it belong to
False
Revenue is earned when money is received
Net income
Revenues - Expenses
True
The accounting equation can be expressed as assets - liabilities = equity
Cost of Merchandise Sold; Merchandise Inventory
The adjusting journal entry to record inventory shrinkage includes a debit to _____ and a credit to
current asset account
The estimated returns inventory account is reported as a _____ on the balance sheet.
Balance Sheet
The financial statement that lists assets, liabilities, and owner's equity as of a specific date, usually at the close of the last day of a month or a year, is called
Statement of Owner's Equity
The financial statement that summarizes the changes in the owner's equity that have occurred during a specific period of time, such as a month or a year is called
True
Under the revenue recognition principle, revenues are recorded when earned, which is when the services have been performed or products have been delivered to customers.
Balance Sheet
Unearned rent- what finance statement does it belong to
Capital
What account is shown on owners equity and balance statement
cost of merchandise sold
When merchandise is sold, the revenue is reported as sales and its cost is recognized as an expense called
Inventory Shrinkage
When the physical inventory on hand at the end of the accounting period is less than the balance of Merchandise Inventory, the difference is called__
SEC
Which organization has the overall authority with the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public?
Liabilities
Which type of business is owned by one individual?
Proprietorship
Which type of business is owned by one individual?
debit drawing, credit cash
Withdrew cash for personal use, $1,600.
False
accounts receivable is the same as revenue
Merchandise Inventory
inventory shrinkage- credit what
COMS
inventory shrinkage. debit what
Accured Revenue
is the amount that has been earned but has not been recorded.
a/R, sales, coms, merch, inventory, cash, A/R
seller journal
