ACC 200 Chapter 2.

An account is a record of increases and in a specific asset, liability, equity, revenue or expense.

An account is a record of increases and Input Field 1 of 1 decreases unavailable correct in a specific asset, liability, equity, revenue or expense.

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

False

The account title is shown at the top of a T-account. The left side of a T-account is called the Input Field 1 of 2 f unavailable incorrect

debit credit

The Dividends account is used to record Input Field 1 of 2 expenses unavailable incorrect (investments/dividends/expenses/revenues) by the owner and has a Input Field 2 of 2 positive unavailable incorrect (positive/negative) impact on equity.

dividends negative

Given the descriptions below, which is (are) true regarding notes receivable? (Check all that apply.)

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

Which of the following are accurate statements regarding how to report or treat prepaid accounts? (Check all that apply.)

Over time, the expired portion of prepaid accounts is removed from the account and reported as an expense. The unexpired portion of prepaid accounts are treated as assets. The expired portion of prepaid accounts is reported on the income statement as an expense.

Which of the following are examples of prepaid (expense) accounts? (Check all that apply.)

Prepaid rent Prepaid insurance

Which of the following lists of items contain only examples of prepaid (expense) accounts?

Prepaid rent, prepaid insurance

An annual insurance policy is paid in advance by a company. How will the company treat this initial payment and the subsequent expiration of a portion of the policy over time? (Check all that apply.)

As a portion of the policy expires, the expired portion will be removed and transferred to an expense account. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset. The initial payment will be recorded as an increase to a Prepaid Insurance account.

Dividends are increased on the left side of the T-account. Dividends decrease equity. Dividends is used to record distributions of assets to the owners of a business.

Unearned revenue is a liability account which is set up when a customer pays in advance for a product or service. Unearned revenues refer to a liability that is settled when a company delivers a product or performs a service.

Which of the following statements are accurate regarding supplies? (Check all that apply.)

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

Which of the following statements are accurate regarding supplies? (Check all that apply

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

Which of the following statements is (are) true about accounts receivables? (Check all that apply.)

Accounts receivable increased when credit sales are made. Accounts receivable reflects the amount still owed by customers.

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.

When the product or service related to an unearned revenue is delivered, the earned portion of the unearned revenue is transferred to a _____ account.

revenue

Which of the following statements is the best definition of an asset?

Assets are resources owned or controlled by a company and that have expected future benefits.

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

asset

When financial statements are prepared, unexpired prepaid accounts are recorded as (expenses/assets/liabilities) and the expired portion of the prepaid account is reported as a(n) (expense/asset/liability).

assets expense

When financial statements are prepared, unexpired prepaid accounts are recorded as Input Field 1 of 2 liabilities unavailable incorrect

assets expense

Supplies are Input Field 1 of 2 assets unavailable correct (assets/expenses/liabilities) until they are used. When they are used up, their costs are reported as Input Field 2 of 2 expenses unavailable correct (assets/expenses/liabilities).

assets expenses

Accounts receivable are (increased/decreased) by credit sales and are (increased/decreased) by customer payments.

increased decreased

All of the following are examples of accrued liabilities:

interest payable taxes payable wages payable

Accrued liabilities are amounts owed that are not Input Field 1 of 1 liabilities unavailable incorrect

paid

A T-account may be used as a tool to visualize the effects of a transaction. A T-account will show the debit and credit effects of transactions. A T-account represents a ledger account.

t-account

The correct definition of an "account" includes which of the following?

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

Which of the following statements is (are) true about accounts receivables? (Check all that apply.)

Accounts receivable reflects the amount still owed by customers. Accounts receivable increased when credit sales are made.

Cash can take many forms. From the lists of items below, choose the one which includes only items that would be defined as cash.

Coins, checks, money orders

Which of the following statements is (are) accurate regarding equipment purchased within a business? (Check all that apply.)

Equipment is reported on the left side of the accounting equation. Equipment is an asset. Equipment cost is initially recorded as an asset and as it is used and gets worn down, the cost is gradually expensed. Equipment purchases are reported on the balance sheet.

Which of the following statements is correct about prepaid accounts

Prepaid accounts are also called prepaid expenses and are considered assets.

Select the statement below that best defines prepaid accounts.

Prepaid accounts are assets that represent prepayments of future expenses.

Which of the following statements is accurate about the Land account? (Check all that apply.)

The Land account is increased on the left side of its T-account. The Land account is used to record the costs of land purchased by the business. The Land account is an asset.

Which of the following describes a general ledger?

The general ledger is a record containing all accounts used by a company.

Which of the following are accurate statements regarding how to report or treat prepaid accounts? (Check all that apply.)

The unexpired portion of prepaid accounts are treated as assets. Over time, the expired portion of prepaid accounts is removed from the account and reported as an expense. The unexpired portion of prepaid accounts are treated as assets. The expired portion of prepaid accounts is reported on the income statement as an expense.

The general ledger can be used to determine which of the following (select all answers which apply):

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.