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