accounting final exam

which of the following entries records the billing of patients for services performed? a) accounts receivable, debit; fees earned, credit b) accounts payable, debit; cash, credit c) fees earned, debit; accounts receivable, credit d) fees earned, debit; cash, credit

a) accounts receivable, debit; fees earned, credit

which of the following describes the classification and normal balance of the accounts receivable account a) asset, debit b) liability, credit c) owner's equity, credit d) revenue, credit

a) asset, debit

which of the following describes the classification and normal balance of the cash account a) asset, debit b) liability, debit c) capital, credit d) revenue, credit

a) asset, debit

which of the following types of accounts have a normal debit balance? a) assets and expenses b) liabilities c) revenue and expenses d) assets and liabilities

a) assets and expenses

accounts receivable appears on the a) balance sheet b) statement of owner's equity c) income statement d) statement of cash flows

a) balance sheet

long-term liabilities appears on the a) balance sheet b) statement of owner's equity c) income statement d) statement of cash flows

a) balance sheet

salaries payable appears on the a) balance sheet b) statement of owner's equity c) income statement d) statement of cash flows

a) balance sheet

An overpayment error was discovered in computing and paying the wages of a Bartson repair shop employee. When Bartson receives cash from the employee for the amount of the overpayment, which of the following entries will Bartson make? a) cash, debit; wages expense, credit b) wages payable, debit; cash, credit c) wages expense, debit; cash, credit d) cash, debit; wages payable, credit

a) cash, debit; wages expense, credit

prepaid insurance is reported on the balance sheet as a) current asset b) fixed asset c) current liability d) long-term liability

a) current asset

the balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents three months rent paid on december 1. The adjusting entry required on december 31 a) debit rent expense $5,000; credit prepaid rent $5,000 b) debit prepaid rent $10,000; credit rent expense $5,000 c) debit rent expense $10,000; credit prepaid rent $5,000 d) debit prepaid rent $5,000; credit rent expense $5,000

a) debit rent expense $5,000; credit prepaid rent $5,000

which of the following entries records the receipt of a utilities bill from the water company? a) debit utilities expense; credit utilities payable b) debit utilities payable; credit accounts receivable c) debit accounts payable; credit cash d) debit accounts payable; credit utilities payable

a) debit utilities expense; credit utilities payable

a credit may signify a a) decrease in assets b) decrease in liabilities c) decrease in capital d) decrease in revenue

a) decrease in assets

a credit signifies a decrease in a) drawing b) liabilities c) capital d) revenue

a) drawing

which of the following accounts is a liability account? a) notes payable b) prepaid insurance c) capital d) cash

a) notes payable

in which of the following types of accounts are increases record by credits? a) revenues, liabilities b) drawing, assets c) liabilities, drawing d) expenses, liabilities

a) revenues, liabilities

which of the following accounts should be closed to income summary at the end of the fiscal year? a) supplies expense b) accumulated depreciation c) prepaid expenses d) unearned revenues

a) supplies expense

supplies purchased on account were incorrectly recorded as office equipment. the correcting entry would be a) supplies, debit; office equipment, credit b) accounts receivable, debit; supplies, credit c) office equipment, debit; supplies expense, credit d) supplies, debit; accounts payable, credit

a) supplies, debit; office equipment, credit

an account is said to have a debit balance if a) the amount of the debits exceeds the amount of credits b) there is more entries on the debit side than on the credits side c) its normal balance is debit without regard to the amounts or number of entries on the debit side d) the first entry of the accounting period was posted on the debit side

a) the amount of the debits exceeds the amount of credits

the classification and normal balance of the accounts payable account is a) an asset with a credit balance b) a liability with a credit balance c) owner's equity with a credit balance d) revenue with a credit balance

b) 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? a) cash, debit; J's, capital, credit b) accounts payable, debit; cash, credit c) accounts receivable, debit; cash, credit d) accounts payable, debit; accounts receivable, credit

b) accounts payable, debit; cash, credit

the classification and normal balance of the supplies account is a a) asset with a credit balance b) asset with a debit balance c) liability with a credit balance d) liability with a debit balance

b) asset with a debit balance

unearned fees appears on the a) balance sheet in the current assets section b) balance sheet as a current liability c) balance sheet in the owner's equity section d) income statement as revenue

b) balance sheet as a current liability

accumulated depreciation appears on the a) balance sheet in the current assets section b) balance sheet in the fixed assets section c) balance sheet in the long-term liabilities section d) income statement as an operating expense

b) balance sheet in the fixed assets section

which of the following entries records the receipt of cash for two months rent? the cash was received in advance for providing service a) prepaid rent, debit; rent revenue, credit b) cash, debit; unearned revenue, credit c) cash, debit; prepaid rent, debit d) cash, debit; rent expense, debit

b) cash, debit; unearned revenue, credit

which of the following entries record the investment of cash by Funaro, owner of proprietorship? a) debit Funaro, capital; credit accounts receivable b) debit cash; credit Funaro, capital c) debit Funaro, capital; credit cash d) debit cash; credit Funaro, drawing

b) debit cash; credit Funaro, capital

which of the following entries records the withdrawal of cash by Joe, owner of proprietorship, for personal use? a) debit Joe, capital; credit cash b) debit joe, drawing; credit cash c) debit salaries expense; credit cash d) debit salaries expense; credit salaries payable

b) debit joe, drawing; credit cash

a debit may signify a a) decrease in asset accounts b) decrease in liability account c) increase in capital account d) decrease in drawing account

b) decrease in liability account

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 a) rent b) depreciation c) amortization d) depletion

b) depreciation

Which one of the fixed asset accounts listed below will not have a related contra asset account? a) office equipment b) land c) delivery equipment d) building

b) land

unearned rent, representing rent for the next six months occupancy, would be reported on the landlord's balance sheet as a a) asset b) liability c) capital account d) revenue

b) liability

adjusting entries are a) the same as correcting entries b) needed to bring accounts up to date and match revenue and expense c) optional under generally accepted accounting principles d) rarely needed in large companies

b) 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? a) salaries expense b) notes payable c) N. McGee, drawing d) supplies

b) notes payable

which of the following is reported on the statement of owner's equity for the current year? a) accumulated depreciation b) owner's additional investment made during current period c) rent expense d) wages payable

b) owner's additional investment made during current period

which of the following entries records the payment of rent for the current month? a) cash, debit; expense, credit b) rent expense, debit; cash, credit c) rent expense, debit; accounts receivable, credit d) accounts payable, debit; rent expense, credit

b) rent expense, debit; cash, credit

in which of the following types of accounts are decreases recorded by debits? a) assets b) revenues c) expenses d) drawing

b) revenues

a credit balance in which of the following accounts would likely indicate an error? a) fees earned b) salary expense c) P. Pelavin, capital d) accounts payable

b) salary expense

The verification the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a a) ledger b) trial balance c) account d) balance sheet

b) trial balance

using accrual accounting, revenue is recorded and reported only a) when cash is received without regard to when the services are rendered b) when the services are rendered without regard to when cash is received c) when cash is received at the time services are rendered d) if cash is received after services are rendered

b) when the services are rendered without regard to when cash is received

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 a) $3,000 b) $40,000 c) $37,000 d) $43,000

c) $37,000

office supplies purchased by J's Appliance Repair to creditors on account were returned. Which of the following entries for J's records this transaction? a) cash, debit; office supplies, credit b) office supplies, debit; accounts receivable, credit c) accounts payable, debit; office supplies, credit d) office supplies, debit; accounts payable, credit

c) accounts payable, debit; office supplies, credit

the difference between the balance of a fixed asset account and the related accumulated depreciation account is termed a) historical cost b) contra asset c) book value d) market value

c) book value

which of the following entries record the collection of cash from cash customers? a) fees earned, debit; cash, credit b) fees earned debit, ; accounts receivable, credit c) cash, debit; fees earned, credit d) accounts receivable, debit; fees earned, cedit

c) cash, debit; fees earned, credit

the type of account and normal balance of accumulated depreciation is a) asset, credit b) asset, debit c) contra asset, credit d) contra asset, debit

c) contra asset, credit

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 a Thursday is a) debit salaries payable $16,000; credit cash $16,000 b) debit salaries expense $16,000; credit drawing $16,000 c) debit salaries expense $16,000; credit salaries payable $16,000 d) debit drawing $16,000; credit cash $16,000

c) debit salaries expense $16,000; credit salaries payable $16,000

in which of the following types of accounts are decreases recorded by credits? a) liabilities b) owner's capital c) drawing d) revenues

c) drawing

the classification and normal balance of the supplies expense account is a a) asset with a debit balance b) asset with a credit balance c) expense with a debit balance d) liability with a credit balance

c) expense with a debit balance

depreciation expense appears on the a) balance sheet b) statement of owner's equity c) income statement d) statement of cash flows

c) income statement

which of the following accounts will be closed to capital at the end of the fiscal year? a) rent expense b) fees earned c) income summary d) depreciation expense

c) income summary

which of the following application of the rules of debit and credit is true? a) decrease prepaid insurance with a credit and the normal balance is a credit b) increase accounts payable with a credit and the normal balance is a debit c) increase supplies expense with a debit and the normal balance is a debit d) decrease cash with a debit and the normal balance is a credit

c) increase supplies expense with a debit and the normal balance is a debit

the process of initially recording a business transaction is called a) trial balancing b) posting c) journalizing d) balancing

c) journalizing

which of the following entries records the acquisition of office supplies on account? a) office supplies, debit; cash, credit b) cash, debit; office supplies, credit c) office supplies, debit; accounts payable, credit d) accounts receivable, debit; office supplies, credit

c) office supplies, debit; accounts payable, credit

which of the following accounts will not be closed to income summary at the end of the fiscal year? a) salaries expense b) fees earned c) unearned rent d) depreciation expense

c) unearned rent

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 a) $4,500 b) $2,500 c) $9,700 d) $5,700

d) $5,700

the classification and normal balance of the equipment account is a) an asset with a credit balance b) a liability with a credit balance c) expense with a debit balance d) an asset with a debit balance

d) an asset with a debit balance

the type of account and normal balance of prepaid rent is a) contra asset, debit b) expense, debit c) asset, credit d) asset, debit

d) asset, debit

in which of the following types of accounts are increases recorded by debits? a) assets, liabilities b) drawing, liabilities c) expenses, liabilities d) assets, expenses

d) assets, expenses

which of the following groups of accounts have a normal debit balance? a) revenues, liabilities b) capital, assets c) liability, expenses d) assets, expenses

d) assets, expenses

which of the following accounts is an asset account? a) salaries expense b) drawing c) accounts payable d) cash

d) cash

which of the following entries records the receipt of cash from patients on account? a) accounts payable, debit; fees earned, credit b) accounts receivable, debit; fees earned, credit c) accounts receivable, debit; cash, credit d) cash, debit; accounts receivable, credit

d) cash, debit; accounts receivable, credit

which of the following entries records the payment of an account payable? a) debit cash; credit accounts payable b) debit accounts receivable; credit cash c) debit cash; credit accounts receivable d) debit accounts payable; credit cash

d) debit accounts payable; credit cash

what is the proper adjusting entry on june 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $15,500, and unexpired amounts per analysis of policies, $4,500 a) debit insurance expense $4,500; credit prepaid insurance $4,500 b) debit insurance expense $15,500; credit prepaid insurance $15,500 c) debit prepaid insurance $11,500; credit insurance expense $11,500 d) debit insurance expense $11,000; credit prepaid insurance $11,000

d) debit insurance expense $11,000; credit prepaid insurance $11,000

the matching concept a) addresses the relationship between the journal and the balance sheet b) determines whether the normal balance of an account is a debit or credit c) requires that the dollar amount of debits equal the dollar amount of credits on a trial balance d) determines that the expenses related to revenue be reported at the same time the revenue is reported

d) determines that the expenses related to revenue be reported at the same time the revenue is reported

which of the following entries records the owner taking cash from the company for personal use? a) wage expense, debit; cash, credit b) Keskey, capital, debit; wages payable, credit c) no entry necessary since the owner owns the cash and the entire business d) drawing, debit; cash, credit

d) drawing, debit; cash, credit

the debit side of an account a) depends on whether the account is an asset, liability, or owner's equity b) can be either side of the account depending on how the accountant sets up the system c) is the right side of the account d) is the left side of the account

d) is the left side of the account

which of the following accounts is an owner's equity account? a) cash b) accounts payable c) prepaid insurance d) julia davis, capital

d) julia davis, capital

which of the following types of accounts have a normal credit balance? a) drawing b) assets c) expense d) liability

d) liability

the classification and normal balance of the drawing account is a) an expense with a credit balance b) an expense with a debit balance c) a liability with a credit balance d) owner's equity with a debit balance

d) owner's equity with a debit balance

which of the following describes the classification and normal balance of the owner's capital account a) owner's equity, debit b) revenue, credit c) liability, credit d) owner's equity, credit

d) owner's equity, credit

a debit signifies a decrease in a) assets b) expenses c) drawings d) revenue

d) revenue

which of the following describes the classification and normal balance of the fees earned account? a) asset, credit b) liability, credit c) owner's equity, debit d) revenue, credit

d) revenue, credit