ACCT125 CH2

Which of the following accounts is a liability account?

-notes payable -accounts payable -wages payable -ALL OF THESE CHOICES ARE CORRECT

Net income for Year 1 was $75,000, and net income for Year 2 was $90,000. What is the percent of increase or decrease in horizontal analysis?

20% increase

Fees earned for Year 1 were $90,000 and for Year 2 were $40,000. What is the percent of increase or decrease in horizontal analysis?

55.6% decrease

Which of the following accounts is NOT an asset account?

Accounts payable

On March 15, Civic Company paid its employees for two weeks' wages. This transaction will have which of the following impacts on the accounting equation

Assets will decrease and stockholders' equity will decrease.

On May 21, Civic Company paid dividends of $1,000 to the shareholders. The journal entry to record this transaction would include a debit to

Cash. Common Stock. Dividends. None of these choices are correct.!!!!

A deposit into your account at the bank is recorded as a(n)

Credit

If the bank debits your account, the account balance will If the bank debits your account, the account balance will

Decrease

Purchasing supplies on account __________ a(n) __________ account.

Increases / liability

The cash in your account is an asset to you but a ______ to the bank.

Liability

Which of the following steps would be done last when preparing a trial balance?

Verify that the total of the Debit column equals the total of the Credit column.

On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction would include

a debit to Cash.

All of the following accounts have normal credit balances EXCEPT

cash

All of the following accounts have normal debit balances EXCEPT

common stock

On December 15, Zapp Company paid $1,900 to Sylvan Supply Co. on account. The journal entry to record this transaction would include a __________ to __________.

credit / cash

Revenue accounts and expense accounts are increased by __________ and __________, respectively.

credit / debit

Asset accounts and liability accounts are increased by __________ and __________, respectively.

debit / credit

The process of transferring the debits and credits from the journal entries to the accounts in the ledger is called

posting

Increases in stockholders' equity as a result of selling services or products to customers are known as

revenues