Financial

Which of the following transactions decreases stockholders' equity?

Pay salaries for the current period.

All transactions related to a particular item over a period of time are summarized in a(n):

Account

Provide beauty services of $950 to customers on account.

Account Receivable (Dr 950) Service revenue (Cr 950)

Pay $650 for radio advertising for February.

Advertising expense (dr 650) Cash (Cr650)

Which of the following is considered cash for financial reporting purposes?

Balances in savings accounts

Provide beauty services of $2,650 to customers and receive cash.

Cash (Dr 2650) Service Revenue (Cr 2650)

A credit is used to decrease which of the following accounts?

Cash.

Expenses represent:

Costs of providing products or services to customers.

Paying dividends to stockholders would be recorded with a

Debit to Dividends.

The adjusting entry to record supplies used during the period includes a:

Debit to Supplies Expense

Which of the following adjusts the bank's balance of cash in a bank reconciliation?

Deposits outstanding.

After transactions are recorded in the journal, they are posted to the:

General ledger.

Under accrual-basis accounting, companies typically report expenses:

In the same period as the revenue they help to generate.

In which financial statement does a company report its revenues?

Income Statement.

Which of the following adjusts the company's balance of cash in a bank reconciliation?

Interest earned.

Who ultimately is responsible for properly applying GAAP? The company's:

Management.

Which of the following represents an obligation of the company?

Liabilities.

Closing entries are:

Made to transfer the balances of temporary accounts to retained earnings.

On March 4, Tonkawa Law asks Green Lawn Services for basic lawn maintenance totaling $200. Green Lawn provides maintenance on March 8, and Tonkawa pays for the lawn maintenance on March 12. Under accrual-basis accounting, on which date should Tonkawa record lawn maintenance expense?

March 8 (date of lawn maintenance service).

The primary function(s) of financial accounting is(are) to:

Measure business activities of a company and communicate information about business activities to outside users.

Which of the following describes the information reported in the statement of cash flows?

Net cash flows from operating, investing, and financing activities.

Which of the following transactions decreases total assets

Pay dividends to stockholders.

Corporate executive accountability under the Sarbanes-Oxley Act requires corporate executives to:

Personally certify the company's financial statements.

The process of transferring debit and credit information from the general journal to the general ledger is known as:

Posting.

A component/aspect of relevant accounting information includes

Predictive value

The fundamental qualitative characteristics of accounting information identified by the FASB are:

Relevance, faithful representation.

Pay employee salaries for the current month of $850.

Salaries Expense (Dr 850) Cash (Cr 850)

Which of the following accounts is listed in a post-closing trial balance?

Salaries Payable.

Which of the following accounts normally has a credit balance?

Service Revenue.

When preparing a bank reconciliation, outstanding checks would be:

Subtracted from the bank's cash balance.

Effective internal control over cash includes the requirement that:

The person who makes deposits should NOT record the deposits.

Which of the following best describes an important function of financial accounting?

To support the efficient distribution of society's resources.

Pay utility bill for the current month of $250.

Utilities expense (Dr 250) cash (cr 250)

Purchase beauty supplies of $1,250 on account

supplies(Dr 1250) Account Payable (Cr 1250)

What is a direct purpose of internal controls?

to improve the accuracy and reliability of accounting information