Accounting exam one

Jamal Company began the year with $126,000 in its Common Stock account and a debit balance in Retained Earnings of $54,000. During the year, the company earned net income of $27,000 and declared and paid $9,000 of dividends. In addition, the company sold additional common stock amounting to $33,000. Based on this information, what should the transaction analysis show for the ending total of all stockholders' equity accounts?

$123,000

In the first month of operations, the total of the debit entries to the Cash account amounted to $2,000 and the total of the credit entries to the Cash account amounted to $1,500. The Cash account has a

$500 debit balance

5. Which of the following statements is not true? A. Comparability means using the same accounting principles from year to year within a company. B. Faithful representation is the quality of information that gives assurance that it is free of error. C. Relevant accounting information must be capable of making a difference in the decision. D. The primary objective of financial reporting is to provide financial information that is useful to investors and creditors for making decisions.

A

Which of the following correctly identifies normal balances of accounts? Expenses=

Debit

Which of the following correctly identifies normal balances of accounts? Assets=

Debit

Which of the following accounts is increased with a credit

Sales Revenue

Which of the following accounts has a normal debit balance?

Prepaid Rent

The basic form of a journal entry has the

debit account entered first at the extreme left margin.

When a company performs a service but has not yet received payment, it

debits Accounts Receivable and credits Service Revenue

The double-entry system requires that each transaction must be recorded

in at least two different accounts

When posting a journal entry, debits ________ assets and ________ liabilities

increase and decrease

Receiving payment of a portion of an accounts receivable will

not affect total assets

During January 2017, Carey Services Inc. paid a cash dividends of $2,000. This transaction

reduces stockholders' equity by $2,000

KC SuperPower Inc. purhcases an equipment $ 1,000. KC only pay $ 500 in cash and finance the rest of the purchase from a bank. This transaction would

increases equipment $ 1,000, increase bank loan $ 500, and decreases cash $ 500

The Dividends account

is increased with debits and decreased with credits.

When a corporation distributes a dividend the

most common form of distribution is a cash dividend

N3 Corporation has assets of $4,200,000, common stock of $1,092,000, and retained earnings of $665,000. What are the creditors' claims on their assets?

$2,443,000

Which of the following correctly identifies normal balances of accounts? Common Stock=

Credit

Which of the following correctly identifies normal balances of accounts? Liabilities=

Credit

Which of the following correctly identifies normal balances of accounts? Revenues=

Credit

22. Which of the following items has no effect on retained earnings? A. Expense B. Dividends C. Land purchase D. Revenue

Land purchase

On a classified balance sheet, short-term investments are classified as

a current asset

This derives its value from the rights and privileges it provides the owner

an intangible asset

An investment by the stockholders in a business increases

assets and stockholders' equity

In a classified balance sheet, assets are usually classified as

current assets; long-term investments; property, plant, and equipment; and intangible assets

If services are rendered on account, then

stockholders' equity will increase