Accounts Exam 1
The study of accounting is not useful for a business career unless your career objective is to become an accountant
False
Debits
Increases assets and decreases liabilities
A Ledger
Is a collection of the entire group of accounts maintained by a company
A Trail Balance
Is a list of accounts with their balances at a given time.
A revenue account
Is increased by credits
Which of the following is not part of the recording process
Preparing a income statement
SOX
Sarbanes-Oxley Act
Posting
Transferring journal entries to the ledger accounts
A partnership must be more then 1 owner
True
The economic entity assumption requires that an activity of an entity be kept separate and distinct from the activities of its owners and all other economic entity
True
The monetary unit assumption states that transaction that can be measured in term of money should be recorded on the accounting records
True
The perches of office equipment on credit increases total assets and total liabilities
True
Transaction that can be measured in dollars and cents are recorded in the financial information system
True
The hiring of a new company president is an economic event recorded by the financial information system
False
Accountants do not have to worry about issues of ethics
False
Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process
False
Owners of business firms are the only people who need accounting information
False
Owners' claims to total business assets take precedence over the claim of creditors because owners invest assets in the business and are liable for losses
False
The basic accounting equation states that Assets = Liabilities
False
The cost and fair value of an asset we the same at the time of acquisition and in all subsequent periods
False
The primary accounting standards-setting body in the United States in the International Accounting Standard Board
False
The purchase of supplies on account should result in
A debit to Supplies and a credit to Account Payable
Trail Balance
A listing of the accounts in the general ledger
Which of the following statements about an account is true
An account is an individual accounting record of increases and decreases in specific asset, liability, and owner's equity items.
Accounts that normally have debit balance are
Assets, dividends, and expenses
