ACCT125 CH2
Which of the following accounts is a liability account?
-notes payable -accounts payable -wages payable -ALL OF THESE CHOICES ARE CORRECT
Net income for Year 1 was $75,000, and net income for Year 2 was $90,000. What is the percent of increase or decrease in horizontal analysis?
20% increase
Fees earned for Year 1 were $90,000 and for Year 2 were $40,000. What is the percent of increase or decrease in horizontal analysis?
55.6% decrease
Which of the following accounts is NOT an asset account?
Accounts payable
On March 15, Civic Company paid its employees for two weeks' wages. This transaction will have which of the following impacts on the accounting equation
Assets will decrease and stockholders' equity will decrease.
On May 21, Civic Company paid dividends of $1,000 to the shareholders. The journal entry to record this transaction would include a debit to
Cash. Common Stock. Dividends. None of these choices are correct.!!!!
A deposit into your account at the bank is recorded as a(n)
Credit
If the bank debits your account, the account balance will If the bank debits your account, the account balance will
Decrease
Purchasing supplies on account __________ a(n) __________ account.
Increases / liability
The cash in your account is an asset to you but a ______ to the bank.
Liability
Which of the following steps would be done last when preparing a trial balance?
Verify that the total of the Debit column equals the total of the Credit column.
On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction would include
a debit to Cash.
All of the following accounts have normal credit balances EXCEPT
cash
All of the following accounts have normal debit balances EXCEPT
common stock
On December 15, Zapp Company paid $1,900 to Sylvan Supply Co. on account. The journal entry to record this transaction would include a __________ to __________.
credit / cash
Revenue accounts and expense accounts are increased by __________ and __________, respectively.
credit / debit
Asset accounts and liability accounts are increased by __________ and __________, respectively.
debit / credit
The process of transferring the debits and credits from the journal entries to the accounts in the ledger is called
posting
Increases in stockholders' equity as a result of selling services or products to customers are known as
revenues