Chapter 2 : Accounting For Business Transactions (Learn Smart)

Notes receivable is considered a(n) Blank 1 (asset/liability).

Blank 1: asset

True or false: Assets are claims (by creditors) against the company.

False

Which of the following accounts would be considered an asset? (Check all that apply.) -Supplies -Accounts payable -Accounts receivable -Cash -Common Stock -Building

Supplies Accounts receivable Cash Building

Select the statement below that best defines prepaid accounts. a) Prepaid accounts are assets that represent prepayments of future expenses. b) Prepaid accounts are expenses and are increased with a credit. c) Prepaid accounts are liabilities that are due within a specified time period. d) Prepaid accounts reflect a company's cash balance and include currency, coins and money orders.

a) Prepaid accounts are assets that represent prepayments of future expenses.

The correct definition of an "account" includes which of the following? a) A cashier's tape register receipt showing total dollars of sales made b) A record of increases and decreases in a specific asset, liability, equity, revenue, or expense item c) A bank report listing checks written and deposits made during a month d) A customer's purchase order for buying merchandise

b) A record of increases and decreases in a specific asset, liability, equity, revenue, or expense item

Cash can take many forms. From the lists of items below, choose the one which includes only items that would be defined as cash. a) Checks, money orders, supplies b) Checks, coins, accounts payable c) Coins, checks, money orders d) Coins, accounts receivables, checks

c) Coins, checks, money orders

Identify which of the following lists include only examples of assets: a) Equipment, dividends, land b) Unearned revenue, accounts payable, cash, c) Cash, accounts payable, supplies d) Building, cash, accounts receivable

d) Building, cash, accounts receivable

Given the descriptions below, which is (are) true regarding notes receivable? (Check all that apply.) - Another name for a note receivable is a promissory note. - Notes receivable is classified as an asset. - It is the promise of another entity to pay a specific sum of money on a specified future date. - Notes receivable is classified as a liability.

- Another name for a note receivable is a promissory note. - Notes receivable is classified as an asset. - It is the promise of another entity to pay a specific sum of money on a specified future date.

Which of the following statements are accurate regarding supplies? (Check all that apply.) - When supplies are purchased, they are added to the Supplies account. - Unused supplies can be recorded as Store Supplies, Office Supplies or Supplies. - Supplies are assets until they are used. - Unused supplies are treated as expenses. - Supplies is considered a liability account. - Unused supplies are treated as assets.

- When supplies are purchased, they are added to the Supplies account. - Unused supplies can be recorded as Store Supplies, Office Supplies or Supplies. - Supplies are assets until they are used. - Unused supplies are treated as assets.

Prepaid accounts are Blank 1 (assets/liabilities) that represent prepayments of future expenses and are increased with a Blank 2 (debit/credit).

Blank 1: assets Blank 2: debit

Supplies are Blank 1 (assets/expenses/liabilities) until they are used. When they are used up, their costs are reported as Blank 2 (assets/expenses/liabilities).

Blank 1: assets Blank 2: expenses

Which of the following would be considered a source document in an accounting system? (Check all that apply.) -Employee speeding ticket -Payroll records -Checks -Purchase order -Sales receipt

Payroll records Checks Purchase order Sales receipt

Which of the following items would be considered "cash" and reflected in a company's Cash account? (Check all that apply.) - Checks - Prepaid Insurance - Money orders - Notes Receivable - Coin

- Checks - Money orders - Coin

Select all that apply- The general ledger can be used to determine which of the following (select all answers which apply): - a complete record of each transaction in one account. - common and unique accounts used by a business. - increases and decreases in all accounts in a business. - which accounts are being used by a company and their balances at any given time.

- common and unique accounts used by a business. - increases and decreases in all accounts in a business. - which accounts are being used by a company and their balances at any given time.