Balance Sheet

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

The amount reported on the balance sheet for Property, Plant and Equipment is the company's estimate of the fair market value as of the balance sheet date.

False

The third line of the balance sheet at the end of the year should begin with "For the Year Ended".

False

The total amount reported for stockholders' equity is the approximate fair value or net worth of the corporation as of the balance sheet date.

False

On December 1, ABC Co. hired Juanita Perez to begin working on January 2 at a monthly salary of $4,000. ABC's balance sheet of December 31 will show a liability of

No liability

When an owner draws $5,000 from a sole proprietorship or when a corporation declares and pays a $5,000 dividend, the asset Cash decreases by $5,000. What is the other effect on the balance sheet?

Owner's Equity decreases

The balance sheet heading will specify a

Point in Time

Which of the following is an asset account?

Prepaid Insurance

Another name for the balance sheet is:

Statement of Financial Position

ABC Co. has current assets of $50,000 and total assets of $150,000. ABC has current liabilities of $30,000 and total liabilities of $80,000. What is the amount of ABC's owner's equity?

$70,000

ABC Co. performed services for Client Kay in December and billed Kay $4,000 with terms of net 30 days. ABC follows the accrual basis of accounting. In January ABC received the $4,000 from Kay. In January ABC will debit Cash, since cash was received. What account should ABC credit in the January entry?

Accounts Receivable

Which of the following is a contra account?

Accumulated Depreciation

What is the normal balance for contra asset accounts?

Credit

What is the normal balance for liability accounts?

Credit

What is the normal balance for stockholders' equity and owner's equity accounts?

Credit

Notes Payable could not appear as a line on the balance sheet in which classification?

Current Assets

What is the normal balance for an asset account?

Debit

ABC Co. follows the accrual basis of accounting and performs a service on account (on credit) in December. The service was billed at the agreed upon amount of $3,500. ABC Co. debited Accounts Receivable for $3,500 and credited Service Revenue for $3,500. The effect of this entry on the balance sheet of ABC is to increase assets by $3,500 and to

Increase owner's equity by $3,500

Which of the following would not be a current asset?

Land

Deferred credits will appear on the balance sheet with the

Liabilities

Which of the following is a category or element of the balance sheet?

Liabilities

ABC Co. incurs cleanup expense of $500 on December 30. The supplier's invoice states that the $500 is due by January 10 and ABC will pay the invoice on January 9. ABC follows the accrual basis of accounting and its accounting year ends on December 31. What is the effect of the cleanup service on the December balance sheet of ABC?

Liabilities increased

The book value of a corporation is the total amount of stockholders' equity reported on the balance sheet.

True

Which of the following would normally be a current liability?

Unearned Revenue

Client Jay pays ABC Co. $1,000 in December for ABC to perform services for Jay in 45 days. ABC uses the accrual basis of accounting. In December ABC will debit Cash for $1,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)?

Unearned Revenues (Liability)


Kaugnay na mga set ng pag-aaral

Spring Board Unit 1 part 2... Answers only

View Set

Leadership (HESI+eaq) Management

View Set

MYP Honors World History - Chapter 6: Industrial Revolution

View Set

Database Management - Foundations C175

View Set

Potter & Perry Ch 23: Legal Implications of Nursing Practice

View Set