Accounting exam one
Jamal Company began the year with $126,000 in its Common Stock account and a debit balance in Retained Earnings of $54,000. During the year, the company earned net income of $27,000 and declared and paid $9,000 of dividends. In addition, the company sold additional common stock amounting to $33,000. Based on this information, what should the transaction analysis show for the ending total of all stockholders' equity accounts?
$123,000
In the first month of operations, the total of the debit entries to the Cash account amounted to $2,000 and the total of the credit entries to the Cash account amounted to $1,500. The Cash account has a
$500 debit balance
5. Which of the following statements is not true? A. Comparability means using the same accounting principles from year to year within a company. B. Faithful representation is the quality of information that gives assurance that it is free of error. C. Relevant accounting information must be capable of making a difference in the decision. D. The primary objective of financial reporting is to provide financial information that is useful to investors and creditors for making decisions.
A
Which of the following correctly identifies normal balances of accounts? Expenses=
Debit
Which of the following correctly identifies normal balances of accounts? Assets=
Debit
Which of the following accounts is increased with a credit
Sales Revenue
Which of the following accounts has a normal debit balance?
Prepaid Rent
The basic form of a journal entry has the
debit account entered first at the extreme left margin.
When a company performs a service but has not yet received payment, it
debits Accounts Receivable and credits Service Revenue
The double-entry system requires that each transaction must be recorded
in at least two different accounts
When posting a journal entry, debits ________ assets and ________ liabilities
increase and decrease
Receiving payment of a portion of an accounts receivable will
not affect total assets
During January 2017, Carey Services Inc. paid a cash dividends of $2,000. This transaction
reduces stockholders' equity by $2,000
KC SuperPower Inc. purhcases an equipment $ 1,000. KC only pay $ 500 in cash and finance the rest of the purchase from a bank. This transaction would
increases equipment $ 1,000, increase bank loan $ 500, and decreases cash $ 500
The Dividends account
is increased with debits and decreased with credits.
When a corporation distributes a dividend the
most common form of distribution is a cash dividend
N3 Corporation has assets of $4,200,000, common stock of $1,092,000, and retained earnings of $665,000. What are the creditors' claims on their assets?
$2,443,000
Which of the following correctly identifies normal balances of accounts? Common Stock=
Credit
Which of the following correctly identifies normal balances of accounts? Liabilities=
Credit
Which of the following correctly identifies normal balances of accounts? Revenues=
Credit
22. Which of the following items has no effect on retained earnings? A. Expense B. Dividends C. Land purchase D. Revenue
Land purchase
On a classified balance sheet, short-term investments are classified as
a current asset
This derives its value from the rights and privileges it provides the owner
an intangible asset
An investment by the stockholders in a business increases
assets and stockholders' equity
In a classified balance sheet, assets are usually classified as
current assets; long-term investments; property, plant, and equipment; and intangible assets
If services are rendered on account, then
stockholders' equity will increase