ACCT 2301

Financial Accounting Standards Board (FASB)

Generally Accepted Accounted principles (GAAP) are currently formulated by the

net income/ average total assets

How do you find ROA (Return on Assets)

accumulated depreciation

Which of the following accounts is NOT closed?

Debit cash credit accounts payable

Posting a $2500 purchase of office supplies on account appears as

financial position on a specific date

The balance sheet reports the

Debit office supplies Credit Accounts Receivable

You purchase office supplies on account

Liabilities/ assets

Debt ratio

assets/ liabilities

current ratio

account balances after adjustments

The adjusted trial balance shows

Recording the usage of office supplies during the period

Which is an example of a deferral (prepaid) adjusting entry?

Unearned Revenue

Which of the following accounts is a liability?

Cash, Salaries payable, and retained earnings

Which of the following accounts may appear on a post-closing trial balance?

Accumulated Depreciation

Which of the following accounts would be included in the property, plant, and equipment category of the classified balance sheet?

Stockholders not personally liable for entity's debts

Which of the following characteristics best describes a corporation?

Employees (not taxing authorities, customers, or investors)

Which of the following is not an external user of a business's financial information?

Accrual accounting records revenue only when it is earned

Which of the following is true of accrual basis accounting and cash basis accounting?

Faithful representation concept

Which of the following requires accounting information to be complete, neutral, and free from material error?

Journalize actions as they occur

Which of the following steps of the accounting cycle is not completed at the end of the period?

Journalize transactions, post to the accounts, prepare a trial balance

Which sequence summarizes the accounting process?

Total debits exceed total credits

Which situation indicates a net loss within the income statement section of the worksheet

Sole proprietorship

Which type of business organization is owned by only one owner?

liquidity (think cash)

Assets are listed on the balance sheet in order of their

Debits

The left side of an account is used to record which of the following?

Debit Accounts Payable Credit cash

A company purchased office supplies on account for $800. How do you record the payment on account of the office supplies?

is an internal document that helps summarize data for the preparation of financial statements

A worksheet

measures business activities, communicates results to decision makers, and processes information into reports

Accounting is the information system that

True

Accounts Payable is increased with a credit

updating the accounts at the end of the period

Adjusting the accounts is the process of

an account

The detailed record of the changes in a particular asset, liability, or stockholders equity is called?

revenue to be recorded only after the business has satisfied its performance obligations

The revenue recognition principle requires

zero out everything, transfer revenues, expenses, and dividends to retained earnings, and bring retained earnings account to its correct ending balance

What do closing entries accomplish?