Accounting

Current Liabilities

Account Payable, Salaries Payable, Interest Payable

Provide the services of $ to customers on account

Accounts Receivable (Debit) Service Revenue (Credit)

A trial balance can be best explained as a list of

All accounts and their balances at a particular period

Resources of a company are referred to:

Assets

Which financial statement shows that a company's resources equal claims to those resources?

Balance Sheet

Receive $ cash from credit customers for the May 7 services

Cash (Debit) Accounts Receivable (Cash)

Current Assets:

Cash, Accounts Receivable, Prepaid Rent

Which of the following describes the information reported in the statement of stockholders' equity?

Change in stockholders' equity through changes in common stock and retained earnings

Which of the following adjusts the bank's balances of cash in a bank reconciliation?

Checks outstanding

Which of the following is considered cash for financial reporting purposes?

Checks received from customers

Stockholders Equity

Common Stock and Retained Earnings

What is the concept behind separation of duties in establishing internal control?

Employee fraud is less likely to occur when access to assets and access to accounting records are separated

Long Term Assets:

Equipment and Accumulated Depreciation

The body of rules and procedures that guide the measurement and communication of financial accounting information is known as:

Generally Accepted Accounting Principles

Which financial statement conveys a company's ability to generate profits in the current period?

Income Statement

Which of the following causes the accounting equation to NOT balance?

Increase assets; increase dividends

The Sarbanes-Oxley Act (SOX) mandates which of the following?

Increased regulations to related to auditor-client relations, Increased regulations related to internal control, Increased regulations related to corporate executive accountability. (all the above)

Which of the following transactions causes an increase in total assets?

Issue common stock in exchange for cash

An adjusted trial balance

Lists all accounts and their balances at a particular date after updating account balances for adjusting entries, Is used to prepare the financial statements, Includes balances for revenues, expenses, and dividends. (all the above)

On May 5, Johnson Plumbing receives a phone call from a customer needing a new water heater and schedules a service visit for May 7. On May 7, Johnson installs the new water heater. The customer pays for services on May 10. According to the revenue principle, on which date should Johnson record service revenue?

May 7 (on day of service)

Long-Term Liabilities

Notes Payable

Purchase a one-year insurance policy $

Prepaid insurance (Debit) Unearned Revenue (Credit)

The purpose of a petty cash fund is to:

Provide cash on hand for minor expenditures

Which of the following transactions causes an increase in stockholders' equity?

Provide services to customers on account

Which of the following is NOT a characteristic of adjusting entries?

Reduce the balances of revenue, expenses, and dividend accounts to zero

Pay rent for the current month in amount of $

Rent Expense (Debit) Cash (Credit)

Amounts earned from sales of products or services are referred to as:

Revenues

Expenses:

Salaries Expense, Rent Expense, Depreciation Expense, Interest Expense, Utilities Expense (then total it)

A credit is used to increase which of the following accounts?

Service Revenue

Revenues:

Service Revenue

Which of the following describes the purposes of closing entries?

Transfer the balances of temporary accounts (revenues, expenses, and dividend(s) to Retained Earnings & Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period