ACC 201 {multiple choice, kahoot, connect for chapter 1-3}

the balance sheet depicts the following equation:

assets = liabilities + stockholder's equity

all expenses are found on what statement

income statement

cost of goods sold is found on which financial statement?

income statement

net income (loss) appears in which two financial statements?

income statement and statement of stockholder's equity

current or long-term? debit or credit? buildings

long-term asset; debit

current or long-term? debit or credit? land

long-term asset; debit

what is the primary purpose of the financial accounting?

measure business transactions and communicate those measures to external users to make decisions.

_______ accounts represent activity over the entire life of the company.

permanent

if the company has stockholders' equity of $60,000 at the end of the year, which of the following statements is true?

the company's assets exceed liabilities by $60,000

GAAP

Generally Accepted Accounting Principles

when a company makes an end-of-period adjusting entry, which includes a debit to supplies expense, the usual credit entry is made to:

supplies

which of the following best explains the meaning of total stockholders' equity?

the amount of capital invested by stockholders plus profits retained over the life of the company

the ending balance of retained earnings can best be described as:

the amount of net income over the life of the company not paid to owners in the form of dividends

the unearned revenue account is shown in which statement?

the balance sheet

Air France collected cash on February 4 from the sale of a ticket to a customer on January 26. The flight took place on April 5. According to the revenue recognition principle, in which month should Air France have recognized this revenue?

april

accounts that represent the resources of the company are called:

assets

when the company pays stockholders a dividend, what is the effect on the accounting equation for that company?

decrease assets and decrease stockholders' equity

a company pays one yr of rent in advance of jan 1. on jan 31 the company will record an adjusting entry that will

decrease assets and increase expenses

what revenue account is not found on the income statement?

deferred revenue

*depreciation*

depreciation expense, accumulated depreciation

Emmitt had the following final balances after the first year of operations: assets, $55,000; stockholders' equity, $25,000; dividends, $3,000; and net income, $10,000. What is the amount of Emmitt's liabilities?

$30,000

the following amounts are reported in the ledger of Mariah Company: Assets $80,000 Liabilities $36,000 Ret Earn $12,000 what is the balance in the common stock account?

$32,000

If the liabilities of a company increased by $55,000 during a month and the stockholders' equity decreased by $21,000 during that same month, did assets increase or decrease and by how much?

$34,000 increase

which of the following statements is true about the financial statements?

- income statement: revenues, expenses, and net income - statement of stockholder's equity: common stock, dividends, and retained earnings - statement of cash flows: inflows and outflows from operating, financing, and investing activities (NOT balance sheet: assets, liabilities, rev, exp)

which accounting number has the single greatest impact on stock prices ?

net imcome

which of the following items is reported in the statement of stockholders' equity?

net income

consider the following accounts: ultil exp acc pay serv rev com stock how many of these accounts are increased with debits?

one

the ________ is the average time between purchasing and receiving cash proceeds from its sale.

operating cycle

external events include:

paying employee's salaries, purchasing equipment, collecting an account receivable

which of the following will NOT be involved in closing entries? (prepaid insurance, service revenue, utilities expense, and retained earnings)

prepaid insurance

which of the following is a permanent account? (dividends, service revenue, advertising expense, and retained earnings)

retained earnings

the revenue recognition principle states that:

revenue should be recognized in the period earned

the closing entry for which account will result in an increase in retained earning

revenues

net income can best be described as:

revenues minus expenses

which of the following accounts has a debit balance? (accounts payable, unearned revenue, service revenue, salaries expense)

salaries expense

temporary accounts would NOT include: salaries payable advertising expense supplies expense dividends

salaries payable

accounting equation:

Assets = Liabilities + Owner's (stockholder's) Equity

amounts owed to suppliers for supplies purchased on account are defined as:

accounts payable

which of the following is not an asset account?

accounts payable

which of the following items would not appear in an income statement?

accounts payable

which of the following accounts would normally have a credit balance?

accounts payable , service revenue, common stock

which of the following financial statements reports a company's retained earnings?

balance sheet

which of the following accounts appears in the statement of stockholders' equity?

common stock

the form of business organization that is legally separate from its owners is a:

corporation

debit or credit: accounts payable

credit

debit or credit: common stock

credit

debit or credit: deferred revenue

credit

debit or credit: retained earnings

credit

debit or credit: sales revenue

credit

revenues increase with _____.

credits

at the beginning of December, Global Corporations had $2,000 in supplies on hand. During this month, supplies purchased amounted to $3,000, but by the end of the month, the supplies balance was only $800. what is the appropriate month-end adjusted entry?

debit supplies expense $4,200 credit supplies $4,200

Expenses normally carry a _______ balance and are shown in the _________.

debit; income statement

Dividends normally carry a _______ balance and are shown in the ______________.

debit; statement of stockholder's equity

revenues have what effect in the accounting equation?

increase stockholders' equity

on april 1, a $4,800 premium on a one-year insurance policy on equipment was paid and charged to prepaid insurance. at the end of the year, the financial statements would report:

insurance expense $3,600 ; prepaid insurance $1,200

Yummy Foods purchased a one-year hazard insurance policy on August 1 and recorded the $4,200 premium to prepaid insurance. At its December 31 year-end, Yummy Foods would record which of the following adjusting entries?

insurance expense 1,750 prepaid insurance 1,750

current or long-term? debit or credit? patents

intangible asset; debit

when a company makes an end-of-period adjusting entry that includes a credit to prepaid rent, the debit is usually made to:

rent expense

on September 1, 2015, gold magazine sold 400 one-year subscriptions for $90 each. the total amount received was credited to unearned revenue. what would be the required adjusting entry at december 31, 2015?

unearned revenue 12,000 service revenue 12,000

which of the following are current liabilities? retained earnings supplies equipment accounts receivable unearned revenue accounts payable common stock notes payable (due in 18 months) intrest payable cash

unearned revenue, accounts payable, and interest payable

Use the following appropriate amounts to calculate net income: Revenues, $12,000; Liabilities, $5,000; Expenses, $4,000; Assets, $19,000; Dividends, $4,000.

$8,000

which of the following is true about a debit?

- it is part of a double-entry procedure that keeps the accounting equation in balance - it represents an increase to assets - it represents a decrease to liabilities - it is on the left side of the T account

which of the following is true about a credit?

- it is part of a double-entry procedure that keeps the accounting equation in balance - it represents an increase to liabilities - it represents a decrease to assets - it is on the right side of the T account

debit or credit: cash

Debit

accumulated depreciation is a contra account meaning...

an asset account with a credit balances

the closing entry for salaries expense

a debit to retained earnings

the closing entry for service revenues includes:

a debit to service revenue and a credit to retained earnings

which of the following accounts would normally have a debit balance and appear in a balance sheet?

accounts receivable

a company receives a ultility bill in may. the company does not pay the bill until june. this is an example of

accrued expense

which is a contra account: land buildings accumulated depreciation - equipment equipment

accumulated depreciation - equipment

the balance if the retained earnings is its balance of the beginning of the accounting period on the ______.

adjusted trial balance

which of the following is(are) true regarding the characteristics of adjusting entries?

adjusting entries allow for the proper recognition of revenues and expenses

the matching principle is the principle that states:

all cost that are used to generate revenue are recorded in the period the revenue is recognized

which of the following are current assets? accounts payable cash accounts receivable sales tax payable retained earnings supplies notes payable (due in 18 months) interest payable common stock

cash, accounts receivable, supplies

which of the following accounts are permanent? cash common stock supplies advertising expense accounts payable service revenue salaries revenue prepaid rent dividends equipment

cash, common stock, supplies, accounts payable, prepaid rent, equipment

which of the following accounts would normally have a debit balance?

cash, delivery expense, dividends

which of the following are debits: cash, common stock, supplies, accounts payable, rent expense, accounts receivable, service revenue, salary expense, prepaid rent, insurance expense, prepaid insurance, retained earnings, dividends, unearned revenue, notes payable, equipment, wages expense

cash, supplies, rent expense, accounts receivable, salary expense, prepaid rent, insurance expense, prepaid insurance, equipment, wages expense

which of the following are credits: cash, common stock, supplies, accounts payable, rent expense, accounts receivable, service revenue, salary expense, prepaid rent, insurance expense, prepaid insurance, retained earnings, dividends, unearned revenue, notes payable, equipment, wages expense

common stock, accounts payable, service revenue, retained earnings, unearned revenue, notes payable

Liabilities normally carry a _______ balance and are shown in the ______________.

credit; balance sheet

stockholder's equity increases with _____.

credits

assets are divided into two categories:

current and long-term assets

current or long-term? debit or credit? cash

current asset; debit

current or long-term? debit or credit? prepaid rent

current asset; debit

debit or credit: accounts receivable

debit

debit or credit: equipment

debit

debit or credit: sales expense

debit

do what? stock issued in exchange for cash

debit cash credit common stock

do what? depreciation

debit depreciation expense credit accumulated depreciation

do what? dividends are paid

debit dividends credit cash

expenses increase with ______.

debits

the cost of providing goods and services to customers are referred to as:

expenses

deferred revenue is a credit on the income statement. T or F

false. its not on the income statement

consider the following balances of the Shattuck Law Firm at the end of the year: acc pay salaries exp cash com stock serv rev supplies ret earn ultil exp how many end up at the year-end balance sheet?

five

which of the following accounts has a credit balance?

income tax payable

creditors claim to a corporation's resources:

liabilities