Acct first ex

The journal is referred to as the:

record of original entry.

Pauline Palmer began a new business by depositing $100,000 in the business bank account. She wrote two checks from the business account: $20,000 for office furniture and $5,000 for office supplies. What is her financial interest in the company?

$100,000

Zena Brown has the following balances in its assets, liability, and owner's equity accounts. Cash ????Office Equipment$26,500Accounts Payable$30,300Zena Brown, Capital$115,700 What is the balance of Cash? multiple choice$119,500$146,000$121,500$156,000

$119,500

Precision Drilling has the following balances in its assets and liability accounts.

$200,600

If a journal entry that contains an error has been posted, erase the entry and change the posting in the ledger accounts.

False

Once an incorrect journal entry has been posted, the incorrect amounts remain in the general ledger accounts.

False

The CPA designation stands for:

Certified Public Accountant.

A limited liability company may choose to be taxed as a partnership or corporation.

True

Fraud is intentional or reckless acts that result in the confiscation of a firm's assets or the misrepresentation of the firm's accounting data.

True

Generally accepted accounting principles are accounting standards that are changed and refined in response to changes in the environment in which businesses operate.

True

All the following information is contained on the statement of owner's equity except?

liabilities at the beginning and end of the period.

The names of three accounting jobs include all but:

logistics manager. (Not accounts payable clerk., bookkeeper., and accountant.)

If an owner gives personal tools to the business, how is the transaction recorded?

This is an additional investment by the owner recorded at the fair market value of the tools.

Elizabeth Tolliver purchased a computer for $6,700 on account for her business. What is the effect of this transaction?

Equipment increase of $6,700 and Accounts Payable increase of $6,700.

The Richey Company purchased new equipment for $40,400 from Office Supplies, Inc., to be paid in 30 days. Which of the following is correct?

Equipment is increased by $40,400; Accounts payable is increased by $40,400.

Errors in the Parker Interiors trial balance include all items below except: PARKER INTERIORSTrial BalanceDecember 31, 20X1 DebitCreditCash15,000 Accounts Receivable10,000 Equipment7,000 Accounts Payable 15,000C. Parker, Capital 22,000C. Parker, Drawing 10,000Fees Income14,000 Rent Expenses2,000 Supplies Expenses2,000 Telephone Expenses5,000 Totals55,00047,000

Equipment should be credited.

Generally accepted accounting principles are not needed to ensure that financial information is fairly presented in the operating results and financial positions of firms.

False

Which account has a normal debit balance?

Jeffery Wells, Drawing

To become a Certified Bookkeeper, one must meet all requirements below except:

Pass a criminal background check.

Generally accepted accounting principles are developed by the Financial Accounting Standards Board (FASB) through proposed statements and solicitation of feedback from interested individuals, groups, and companies. Subsequently, the FASB evaluates the opinions received and votes on the statements.

True

One requirement for becoming a CPA is to pass the:

Uniform CPA Exam.

Which transaction below increases an asset and the owner's equity?

a sale of merchandise on credit.

The general ledger organizes accounting information in:

account order.

Amounts that a business must pay in the future are known as:

accounts payable.

Financial statements are:

accumulated financial data summarized in periodic reports.

A business transaction is:

any financial event that changes the resources of the firm.

What information is contained on the balance sheet?

assets, liabilities, and owner's equity on a specific date.

A general journal is like a(n):

diary.

All of the following are goals of internal control except:

encourage noncompliance with management policies and applicable laws.

The sum of several entries on either side of an account that is entered in small pencil figures is a:

footing

The trial balance includes all the following except:

income or loss for the period.

The normal balance of an account is the:

increase side of the account.

The second step in the accounting cycle is to:

journalize the transaction.

What is the increase side for Cash; Accounts Payable; and Trayton Eli, Capital?

left, right, right respectively

The normal balance side for asset, liability, and owner's equity accounts is:

left, right, right respectively.

An organization that has two or more owners who are legally responsible for the debts and taxes of the business is a:

partnership.

What information is contained in the income statement?

revenues and expenses for a period.

All of the following are users of accounting information except:

search engines on a website.

An error in which the decimal point is misplaced, for example when 317 is written as 3.17 is an example of a:

slide

A nonprofit organization such as a public school is a(n):

social entity.

Which of the reasons reflected below is the most accurate for including descriptions when making journal entries?

the audit trail will be easier to follow.

As the owner of a small business, you have decided to apply for a loan to expand your locations. Information that you most likely will need to provide to the lender include all but:

the average value of homes in your neighborhood.

You plan to open a business with two of your friends. You would like to form a corporation, but your friends prefer the partnership form of business. All of the following are advantages of the corporation except:

the corporation's earnings are only taxed once.

What information is included in the financial statement headings?

the firm's name (who); title of the statement (what); time period covered (when).

Accounting is called:

the language of business.

What is entered in the Posting Reference column of the general journal?

the ledger account number.

An error in which the digits of a number are switched, for example 571 is recorded as 517 is an example of a:

transposition.

Oriental Rugs has no liabilities. The assets and owner's equity balances are as follows. Cash$150,000Office Equipment$50,000Supplies ????Johnny Johnson, Capital$230,000 What is the balance of Supplies?

$30,000

Based on the accounts reflected below, the missing value for Equipment for the fundamental accounting equation to be in balance is what amount? Assume that all accounts have normal balances. Cash—$30,800Accounts Payable—$20,000Jack Carter, Capital—$60,000Equipment—$XX,XXXSupplies—$9,200

$40,000

U Fix It Hardware had revenues of $105,000 and expenses of $60,000. How does this affect owner's equity?

$45,000 increase

Check my workCheck My Work button is now disabled Item 32 Find the balance of the Cash account: Cash+−72,00024,00044,00010,000 10,400 4,700

$66,900

Home Interiors has assets of $120,000 and liabilities of $45,000. What is the owner's equity?

$75,000

What affect do withdrawals have on the basic accounting equation?

decrease the owner's equity in the business.

The Certified Bookkeeper exam includes all the parts below except:

Business Law.

The company owner took $5,000 cash for personal use. What is the entry for this transaction?

Debit Caleb Parker, Drawing and Credit Cash

The organization that has the final say on financial accounting issues faced by publicly owned corporations is the:

Securities and Exchange Commission.

In a compound journal entry:

both if two accounts are debited at least one account must be credited and total debits must equal total credits are correct.

Posting references are made in ledger accounts and in the journal to:

both indicate the entry has been posted and ensure against posting the same information twice are correct.

Checks and invoice numbers are included in the journal entry description to:

both provide an audit trail and trace information through the accounting system are correct.

The general journal organizes accounting information in:

chronological order.

The part of the journal entry to be recorded first is the:

debit

Increases are recorded on which side of asset, liability, and owner's equity accounts?

debit, credit, credit respectively