accounting

Which of the following items are found on a chart of accounts?

Account numbers, account titles

The five elements of the accounting equation include Blank______.

Assets Liabilities Owner's Equity (or Shareholders' Equity) Revenues Expenses

Transaction analysis is based on which two principles?

Every transaction affects at least two accounts and the accounting equation remains in balance with each transaction

When Karma, Inc. earns $700 of consulting revenue, it will have a positive impact on Karma's total stockholders' equity. Here's how it affects the equity components:

Revenue is increased which causes stockholders' equity to increase

Which of the following statements about revenues is correct? Multiple choice question. Revenues cause equity to decrease, and they are increased on the right side of their T-account. Revenues cause equity to increase, and they are increased on the right side of the T-account. Revenues cause equity to increase, and they are reported on the left side of the accounting equation. Revenues cause equity to increase, and they are increased on the left side of the T-account.

Revenues cause equity to increase, and they are increased on the right side of the T-account.

True or false: The accounting equation remains in balance for every accounting transaction because of the dual effects concept whereby something of equal value is received and given in exchange.

True. The statement is true. The accounting equation remains in balance for every accounting transaction because of the dual effects concept, also known as double-entry accounting. This concept ensures that for every transaction, something of equal value is received and given in exchange. In other words, every debit (entry on the left side of an account) is matched by a corresponding credit (entry on the right side of an account), and the total debits must equal the total credits, maintaining the balance in the accounting equation (Assets = Liabilities + Equity). This principle is fundamental to the integrity and accuracy of accounting records.

Adjusting entries Blank______. (Check all that apply.) Multiple select question. update the accounts to their proper balances are required in cash basis accounting only are needed in order to measure the period's net income or loss

Update the accounts to their proper balances, Are needed in order to measure the period's net income or loss

Reports assets, liabilities, and stockholders' equity.

a balance sheet

A separate ______ is maintained in order to accumulate the dollar effect of transactions on each financial statement item. (Enter only one word per blank.)

account

Adjusting entries are required before financial statements are prepared to ensure that Blank______. (Select all that apply.) Multiple select question. all expenses incurred during the period are recorded revenues earned equals the cash collected from customers during the period all revenues earned during the period are recorded the expenses include only the amounts paid during the period

all expenses incurred during the period are recorded All revenues earned during the period are recorded

A common characteristic of (assets/liabilities) is their ability to provide benefits to the company.

assets

What are long-term (noncurrent) assets?

assets used for longer than a year

Every transaction results in Blank______.

at least two accounts being affected

Financing provided by owners is referred to as

contributed capital

Liabilities that will be paid or fulfilled within 12 months are ______ liabilities.

current

Since expenses are the costs of doing business and cause equity to (increase/decrease), expenses are increased on the (right/left) side of their T-account.

decrease, left

_______ are the costs of operating a business that are incurred to generate revenues in the period covered by the income statement.

expenses

Most balance sheet elements are recorded at their ______.

historical cost

Which statement is correct regarding entering transactions into the accounting equation?

if assets increase then liabilities and stock holder equity increases too

Stockholders' equity is the residual interest in the assets of the entity after subtracting

liabilities

If a company is not expected to continue in business, its assets should be valued and reported at their ________ values

liquidation

A chart of accounts is a Blank______.

list of daily transactions showing the accounts debited and credited for each transaction

The _____ unit assumption states that financial statement elements should be measured in terms of the United States dollar, without any adjustment for changes in purchasing power (e.g., inflation). (Enter only one word per blank.)

monetary

Which accounting assumption states that financial statement elements should be measured in terms of the US dollar for business in the United States? Multiple choice question.

monetary unit

The ____ ____ ____ margin ratio is calculated by dividing Net Income by Net Sales.

net profit margin

Intangibles such as trademarks and patents are Blank______.

noncurrent assets

A classified income statement is categorized into

operating and peripheral activities

stockholders' equity?

retained earnings and contributed capital

Which of these are part of stockholders' equity?

retained earnings, contributed capital

A net loss results when

revenues are less than expenses

On the balance sheet, contributed capital appears under Blank______.

shareholder's equity

On the balance sheet, contributed capital appears under

stockholder's equity

Which of the following accounts are examples of operating expenses?

supplies expense, rent expense

The separate entity assumption assumes the balance sheet of a corporation reports Blank______.

the results of the business only

Which of these are long-term intangible assets?

trademarks, patents

current liabiltes

will be paid or fulfilled in 12 months