Acc. 1 Final Exam Study Guide
The unearned rent account has a balance of $40,000. If $3,000 of the $40,000 is unearned at the end of the accounting period, the amount of the adjusting entry is
$37,000
The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is
$5,700
The classification and normal balance of the accounts payable account is
A liability with a credit balance
Cash was paid by J's Appliance Repair to creditors on account. which of the following entries for J's records this transaction?
Accounts Payable, debit; Cash, credit
Office supplies purchased by J's Appliance Repair on account were returned. Which of the following entries for J's Appliance Repair records this transaction?
Accounts Payable, debit; Office Supplies, credit
Which of the following entries records the billing of patients for services performed?
Accounts Receivable, debit; Fees Earned, credit
The classification and normal balance of the equipment account is
An asset with a debit balance
The classification and normal balance of the supplies account is a(n)
Asset with a debit balance
Which of the following describes he classification and normal balance of the cash account?
Asset, Debit
Which of the following describes the classification and normal balance of the accounts receivable account?
Asset, Debit
The type of account and normal balance of Prepaid Rent is
Asset, debit
Which of the following types of accounts have a normal debit balance?
Assets and Expenses
In which of the following types of accounts are increases recorded by debits?
Assets, Expenses
Which of the following groups of accounts have a normal debit balance?
Assets, Expenses
Accounts Receivable appears on the
Balance Sheet
Salaries Payable appears on the
Balance Sheet
Long-term Liabilities appears on the
Balance sheet
Unearned Fees appears on the
Balance sheet as a current liability
Accumulated Depreciation appears on the
Balance sheet in the fixed assets section
The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed
Book Value
Which of the following accounts is an asset account?
Cash
Which of the following entries records the receipt of cash from patients on account?
Cash, debit; Accounts Receivable, credit
Which of the following entries records the collection of cash from cash customers?
Cash, debit; Fees Earned, credit
Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.
Cash, debit; Unearned Revenue, credit
An overpayment error was discovered in computing and paying the wages of a Bartson Repair Shop employee. When Barson receives cash from the employee for the amount of the overpayment, which of the following entries will Bartson make?
Cash, debit; Wages Expense, credit
The type of account and normal balance of Accumulated Depreciation is
Contra Asset, credit
Prepaid insurance is reported on the balance sheet as a
Current Asset
Which of the following entries records the payment of an account payable?
Debit Accounts Payable; Credit Cash
Which of the following entries records the withdrawal of cash by joe, owner of a proprietorship, for personal use?
Debit Joe, Drawing; Credit cash
A credit may signify a
Decrease in Assets
As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called
Depreciation
The matching concept
Determines that expenses related to revenue be reported at the same time the revenue is reported
A credit signifies a decrease in
Drawing
In which of the following types of accounts are decreases recorded by credits?
Drawing
Which of the following entries records the owner taking cash from the company for personal use?
Drawing, debit; Cash, credit
The classification and normal balance of the supplies expense account is a(n)
Expense with a debit balance
Depreciation Expense appears on the
Income Statement
Which of the following accounts will be closed to Capital at the end of the fiscal year?
Income Summary
Which of the following applications of the rules of debit and credit is true?
Increase Supplies Expense with a debit and the normal balance is a debit
The process of initially recording a business transaction is called
Journalizing
Which of the following accounts is an owner's equity account?
Julia Davis, Capital
Which of the fixed asset accounts listed below will not have a related contra asset account?
Land
Unearned rent, representing rent for the next six months' occupancy, would be reported on the landlord's balance sheet as a(n)
Liability
Which of the following types of accounts have a normal credit balance?
Liability
Adjusting entries are
Needed to bring accounts up to date and match revenue and expense
A debit balance in which of the following accounts would indicate a likely error?
Notes Payable
Which of the following accounts is a liability account?
Notes Payable
Which of the following entries records the acquisition of Office Supplies on account?
Office Supplies, debit; Accounts Payable, credit
The classification and normal balance of the drawing account is
Owner's Equity with a debit balance
Which of the following describes the classification and normal balance of the owner's capital account?
Owner's Equity, Credit
Which of the following is reported on the Statement of Owner's Equity for the current year?
Owner's additional investment made during the current period
Which of the following entries records the payment of rent for the current month?
Rent Expense, debit; Cash, credit
A debit signifies a decrease in
Revenue
Which of the following describes the classification and normal balance of the fees earned account?
Revenue, credit
In which of the following types of accounts decreases recorded by debit?
Revenues
In which of the following types of accounts are increases recorded by credits?
Revenues, Liabilities
A credit balance in which of the following accounts would indication a likely error?
Salary Expense
Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
Supplies Expense
Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be
Supplies, debit; Office Equipment, credit
The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a
Trial Balance
Which of the following accounts will not be closed to Income Summary at the end of the fiscal year?
Unearned Rent
Using accrual accounting, revenue is recorded and reported only
When the services are rendered without regard to when cash is received
Which of the following entries records the investment of cash by Funaro, owner of a proprietorship?
debit Cash; credit Funaro, Capital
What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $15,500 and unexpired amount per analysis of policies, $4,500?
debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000
The balance in the prepaid rent account before adjustment at the end of the year $15,000, which represents three months' rent paid on December 1. The adjusting entry required on December 31 is
debit Rent Expense, $5,000 ; credit Prepaid Rent $5,000
A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Thursday is
debit Salaries Expense, $16,000; credit Salaries Payable, $16,000
Which of the following entries records the receipt of a utilities bill from the water company?
debit Utilities Expense; credit Utilities Payable
A debit may signify a(n)
decrease in liability accounts
The debit side of an account
is the left side of the account
An account is said to have a debit balance if
the amount of the debits exceeds the amount of the credits