Accounting test 1

A debit represent an increase in

An asset

Examining a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly process is called

Analyzing

Cost accountants provide a wide variety Of services including

Analyzing the cost effectiveness of products produced and services provided

The financial statement that shows the state of the firms assets, liabilities, and owners equity on a specific date is called

Balance sheet

And internal out of her kennel she professional recognition in internal auditing by receiving which of the following certificates

CIA

Which of the following does not use nonprofit accounting guidelines and procedures

Churches

A public account and can she professional recognition as a certified public accountant by meeting certain educational and experience requirements as determined by each state

False

According to the business entity Concept, a proprietor may include non-business assets and liabilities in the business entities accounting records

False

According to the business entity concept, a proprietor may include non-business assets and liabilities in the business entitys accounting records

False

Any item a business owns that will provide future benefit is called owners equity

False

Conny made a purchase on account of printer paper To last for about three months this transaction increase supplies and decrease account payable

False

Cost accounting is used to develop a financial plan for a company

False

Elysa Paid $135 for utilities for her office. This transaction increase cash and the expense account

False

Equity accounts normally have a debit balances

False

If the revenue of a period Exceeds the expenses, the excess Represent a net loss

False

It is not necessary to measure a business transaction in dollars

False

Liabilities represent an inside interest in the business

False

Liability accounts normally have debit balances

False

Mandy withdraws $600 from her business. This transaction increases cash but decreases owners

False

Payment of rent on account decreases the cash account

False

The accounting equation shows the relationship among the three basic accounting elements assets expenses and owners equity

False

The principal accounting officer of the company is called a public accountant

False

The statement of owners equity shows the state of the business and a specific date

False

The term profit and loss statement or operating statement are sometimes used as synonyms for the balance sheet

False

Writing or using one of the latest technological advances to enter a transaction and In the accounting records is called summarizing

False

And accounting period of 12 months duration usually referred to as a

Fiscal year

Totals on the debit and credit sites to determine the balance of an account are known

Footings

The financial statement that should be completed first is better

IncomeStatement

May Received $7000 in cash from a client for professional services rendered. This transaction would

Increase asset and increase owners equity

Megan started Her business by investing $30,000 in cash. This transaction would

Increase assets and increase owners equity

An increase in asset account may be offset by

Increase in owners equity

Jason purchased office equipment For $4800 in cash. This transaction would

Increase one asset And decrease another asset

Jason purchased Office equipment for $4800 in cash. This transaction would

Increase one assets and decrease another asset

And investment of cash in a business by the owner

Increases cash

A person who Reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate and I've been following may be referred to as

Internal auditor

A person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate and are being followed may be referred to as

Internal auditor

Which of the following does not use nonprofit accounting guidelines and procedures ?

Propriertorship

Increases two owners equity may be from

Revenue that is derived from sales of goods or services

The accounting function of classifying

Sorting and group in similar items together

Bringing together various items of information to determine or explain a result is

Summarizing

And example of an expense is

Supplies consumed

The drawing account should be used to show

The amount the owner has taken out of the business

A business that makes a product to sell is called a manufacturing business

True

A trial balance is a list of all accounts showing the title and balance of each account

True

Accountants Design accounting information systems and analyze and interpret information

True

And accounts payable is an on written promise to pay a supplier for assets Purchased Or services rendered

True

Generally excepted accounting principles are Procedures and violence to be follow in the accounting reporting process

True

Increases in owners equity are entered as credits

True

Other terms used for owners equity includes net worth and capital

True

Recognizing the effects of transactions on assets, Liabilities, owners equity, revenue, and expenses of a business in the processing function

True

Since supplies last for several months they are recorded as assets

True

Stockholders may have very little influence and business decision

True

The accounting equation must remaining in balance

True

The balance of a T account is on the side with the larger footing

True

The balance sheet reports assets liabilities and owners equity on a specific date

True

The difference between the footings of an account is called a balance

True

The financial accounting standards Board develops generally excepted accounting principles to provide some assurance that companies are reporting business activities in a similar manner

True

The income statement and statement of owners equity provide information covering a period of time

True

The income statement provides information about events over a period of a month, year, or other. Period Of time

True

The purpose of accounting is to provide financial information about the current operations and financial conditions of a business to individuals and organizations

True

The sum of the debits must equal the sum of the credits on the trial balance

True

The trial balance is used in preparing financial statements

True

When services are performed for which payment will be received later, accounts receivable increases

True

Withdrawal of cashAnd other assets by owner for personal reasons decreases owners equity

True

A decrease in owners equity May result from

Withdrawal of cash from the business by the owner

A corporation is usually managed by

A professional manager

Examples of revenue accounts include all the following except

A trial balance is taken periodically to check the equality of the debits and credits

A person who records sorts and Files accounting information in accounting records may be referred to as

Accounting clerk

types of business is owned by stockholders

Corporations

A CMA is a certified marketing auditor

False

Interpreting refers to reviewing eventThat have taken place and determining how they affect the business

False

Is the revenue of a period Exceeds the expenses in excess represents a net loss

False

Public accountant do not offer which of the following services

Marketing analysis

A business that purchases a product from another business to sell to customers is called

Merchandise in business

The accounting equation may be expressed as

Owners equity = Assets - liability's

Which part of the accounting process involves recognizing the effect of transactions on assets, liabilities, owners equity, revenue, and expenses of a business

Processing

The balance sheet

Shows the assets equal liabilities plus owners equity

A business entity is an individual, Association, or organization with control over economic resources and which engages in economic activities

True

At least two accounts are affected by every transaction

True

The six major steps of the accounting process are analyzing recording classifying, summarizing, reporting, and interpreting

True

A partnership is owned by stockholders Or shareholders and is managed by them

False

Sue lee paid $1200 for her Employees salaries. This transaction would

Decrease Assets and decrease owners equity

Accounts that affect owners equity are

Expenses, capital, and revenue