MGMT 702

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 are increased when credit sales are made

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

-Increases and decreases in all accounts in a business. -Common and unique accounts used by a business. -Which accounts are being used by a company and their balances at any given time.

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 statements are accurate regarding supplies? (Check all that apply.)

-When supplies are purchased, they are added to the Supplies account. -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.

Which statement best describes a T-account?

A T-account represents a ledger account and is a tool used to understand the effects of one or more transactions.

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 is the best definition of a source document in the accounting process?

A source document identifies and describes transactions and is the basis for entering an event into the accounting system.

Which of the following is the best definition of a source document in the accounting process? -A source document shows all the information about the legal rights a company has in relation to when it should pay a bill. -A source document identifies and describes transactions and is the basis for entering an event into the accounting system. -A source document is used to determine who hired an employee that is assigned the duty of entering transactions into the accounting process.

A source document identifies and describes transactions and is the basis for entering an event into the accounting system.

Which of the following statements explains what a trial balance is?

A trial balance confirms that the sum of debit account balances equals the sum of credit account balances.

List the following steps of the accounting cycle in their proper order.

Analyze transactions and events Journalize transactions and events Post journal entries Prepare the unadjusted trial balance Journal and post adjusting entries Prepare the adjusted trial balance Prepare the financial statements Journal and post closing entries Prepare the post close trial balance

'' Notes receivable is considered a(n) _________________

Asset

Notes receivable is considered a(n)

Asset

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.

Prepaid accounts are ____________________ that represent prepayments of future expenses and are increased with a ______________________

Blank 1: assets Blank 2: debit

Supplies are ____________________ until they are used. When they are used up, their costs are reported as __________________

Blank 1: assets Blank 2: expenses

Accounts receivable are _________________ , by credit sales and are ____________________, by customer payments.

Blank 1: increased Blank 2: decreased

A trial balance is a(n) _______________ of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals the sum of _____________ account balances. Use one word for each blank.

Blank 1: list Blank 2: credit

Identify which of the following lists include only examples of assets.

Building, cash, accounts receivable

Which of the following accounts has a normal debit balance? (Check all that apply.)

Buildings Supplies Accounts receivable Cash

Which of the following accounts would be considered an asset? (Check all that apply.)

Cash Accounts receivable Supplies Building

Which of the following accounts would be considered an asset? (Check all that apply.) Cash Accounts payable Building Accounts receivable Supplies Common Stock

Cash Building Accounts receivable Supplies

Identify the main sections on a statement of cash flows. (Check all that apply.)

Cash flows from financing activities Cash flows from operating activities Cash flows from investing activities

On Mar 3, Lyons Company paid dividends of $1,000. Use your knowledge of what a correct journal entry should look like to identify what would be included. (Check all that apply.)

Cash would be credited and listed second. Dividends would be debited and listed first.

On Mar 3, Lyons Company received $100 cash in advance of providing catering services to a customer. Use your knowledge of what a correct journal entry should look like to identify what would be included in the correct journal entry

Cash would be debited and listed first Unearned Revenue would be credited and listed second

Identify which of the following lists include only examples of assets.

Cash, Building, Accounts Receivable

Which of the following items would be considered "cash" and reflected in a company's Cash account? (Check all that apply.) Notes Payable Prepaid Insurance Coin Checks Money orders

Coin Checks Money orders

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 list of accounts below, identifies only accounts that would appear on a balance sheet.

Common Stock, Equipment, Accounts Payable

Statement of Retained Earnings

Explains changes in equity from net income (or loss) and from any dividends over a period of time. Beg Retained Earnings+Net Income-Dividends=End Retained Earnings

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

False: Reason: Assets are resources owned or controlled by the business.

Which of the following statements is the best definition of the Chart of Accounts?

It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account.

Which of the following items would be considered "cash" and reflected in a company's Cash account? (Check all that apply.)

Money orders Coin Checks

Which of the following would be included on an income statement? (Check all that apply.)

Net income Total revenues Total expenses

Transferring entries from the journal to the ledger is called

Posting

Which of the following is correct regarding posting a transaction?

Posting means to transfer journal information to a ledger.

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 would be considered a source document in an accounting system? (Check all that apply.)

Purchase order Payroll records Checks Sales receipt

An income statement reports a company's net income or net loss during a period. Which of the following accounts would appear on an income statement? (Check all that apply.)

Service Revenue Wages Expense Rent Expense Rent Revenue DO NOT INCLUDE ASSETS OR LIABILITIES!

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 statements best represents the reason for the accounting equation?

The total of everything owned by a business must always equal the total of what the business owes to creditors and owners.

Which of the following accounts has a normal credit balance? (Check all that apply.)

Unearned consulting revenue Accounts payable Common stock

Analyzing the accounting equation at the end of the month will reveal the following. Select all that apply.

assets = liabilities + equity revenues and expenses will change the equity account

Balance Sheet

describes a company's financial position (types and amounts of assets, liabilities, and equity) at a point in time. Assets=Liabilities+Equity

Income statement

describes a company's revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities. Revenue-Expenses=Net Income

Statement of Cash Flows

identifies cash inflows (receipts) and cash outflows (payments) over a period of time. +/- Operating C.F. +/- Investing C.F. +/- Financing C.F. = Change in Cash

The general ledger

is a record containing all accounts used by a company.

An income statement reports:

the revenues less the expenses incurred by a business