Accounting Midterm ?

Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting?

$350 would show up on the income statement as a sale

Most states require 150 semester hours of college credit for which professional certification?

Certified Public Accountant (CPA)

Which of the following statements is true? Tangible assets have physical substance Tangible assets lack physical substance Tangible assets will be consumed in a year or less Tangible assets will be consumed in over a year

Tangible assets have physical substance

Which of the following is not considered a stakeholder of an organization? a business in another industry creditors lenders employees

a business in another industry

Owners have no personal liability under which legal business structure?

a corporation

Which set of accounts has the same type of normal balance?

accounts payable, retained earnings

Which of the following is typically required for entry level positions in the accounting profession?

bachelor's degree

What is the impact on the accounting equation when a sale occurs?

both sides increase

Accounting is sometimes called the "language of ______ "

business

The accounting information of a privately held company is generally available to all of the following except for competitors governmental agencies investors creditors and lenders

competitors

Which of the following is not an example of a retailer computer manufacturer electronics store grocery store car dealership

computer manufacturer

Which of the following pairs of accounts are impacted the same with debits and credits?

electricity expense and office supplies

External users of financial accounting information include all of the following except employees of a business lenders such as bankers governmental agencies such as the IRS potential investors

employees of a business

Which of the following is not an element of the financial statements? future potential sales price of inventory assets liabilities equity

future potential sales of price of inventory

The primary purpose of what type of business is to serve a particular need in the community?

not for profit

What type of organization primarily offers tax compliance, auditing, and consulting services?

public accounting firms

Which of the following sell stock on an organized stock exchange such as the New York Stock Exchange?

publicly traded companies

Which of these statements is not one of the financial statements? statement of owner investments income statement balance sheet statement of cash flows

statement of owner investments

Which of the following accounts will normally have a debit balance?

supplies

Which of the following pairs increase with credit entries?

unearned service revenue and accounts payable