Intro to accounting

Daniel insurance agency reported revenues of $30,000 in expenses of $32,460 For the current period. What was the final figure reported on the company's income statement?

$2,460 net loss

The cash account has a $15,000 debit balance. a $5000 credit entry and a $7000 debit entry are post to the account. The final balance of the cash account is

A $17,000 debit balance

When revenue is earned, which of the following would not be a common result of the transaction?

A credit to the account payable account

The following are all characteristics of a sole proprietorship except

A sole proprietorship is legally separate from its owner.

Revenue by definition is

Amounts earned from the sale of goods or services

When the owner withdraws cash for personal use

Asset decrease and owners equity decreases

When the owner invest equipment in a business

Assets and owner's equity increase

What is the financial report that shows the assets, liabilities, and owners equity of a business on a specific date?

Balance sheet

When revenue and expenses are equal, the firm is said to

Break even

Carpet corporation paid cash to purchase equipment. To record this transaction, the accountant would:

Debit equipment and credit cash

Which of the following account types are listed last within the chart of accounts?

Income statement accounts

Which of the following is not a service typically provided by a public accounting firm

Investing services (Typical Services: auditing, tax accounting, and management advisory services.)

Which of the following is not accurate regarding the auditors report?

It is excluded from the financial statements

Which of the following statements regarding the fundamental accounting equation is accurate?

It is in balance after every transaction

The debts or obligations of a business are known as its ___________

Liabilities

What would a posting reference of J3 within the general ledger indicate?

That the associated journal entry is on page 3 of the general journal

Which of the following is not a provision of the Sarbanes-Oxley act?

The Sarbanes - Oxley act allows accountants to offer a broad range of consulting services to publicly traded companies that they audit.

Which of the following statements is accurate regarding the withdrawal of cash by the owner of a company?

The withdrawal leads to a decrease in owners equity

The three line heading of a financial statement shows who, what, and

When

is referred to as a record of original entry.

general journal

The Daniel insurance company reported revenues of $29,000 in expenses of $31,000 for the current period. What was the final figure reported on the companies income statement?

$2,000 net loss

If the trial balance totals are not equal, the error may have been caused by transposition if the difference is evenly divisible by:

9 (A transposition is an accounting error involving misplaced digits in a number. If the difference is evenly divisible by 9, there might be a transposition. A transposition occurs when the digits of a number are switched. For example if 357 is written or input as 375, the difference is 18, which is evenly divisible by 9.)

The account used to record amounts that are owed for goods or services purchased on credit is known as

Accounts payable

Which of the following accounts with the crease on the debit side of the T account?

Accounts payable

Which of the following is not required to become a certified bookkeeper?

Complete A number of required college courses

Bertran Inc. perform services for clients in the amount of $1350 on credit. If this transaction has been posted in error to the cash accounts in the accounts receivable account, what correcting entry would be necessary?

Debit accounts receivable $1350; credit cash $1350

Agatha panties landscape architect company earned $2500 of revenue collecting 1000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is

Debit cash 1000; debit accounts receivable $1500; credit fees income $2500

Bertrand Inc. purchase some shop equipment for $4500 in cash. By mistake, a journal entry debited the office equipment account rather than the shop equipment account. What correct in entry would be necessary?

Debit shop equipment $4500; credit office equipment for $4500

Which of the following is not a correct step in the journalizing process?

Enter a complete but concise description on the line above the debit.

Which of the following groups contains only accounts that normally have credit balances

Fees income and John Smith, capital

Which of the following is not considered to be a social entity?

For-profit business

What is referred to as the record of final entry

General ledger

The first place a transaction is recorded is in the:

Journal

Which of the following is a user of financial information who is considered to be inside the business?

Owners

Which of the following is not a common internal control in fraud prevention policy?

Preventing multiple payments to a single creditor from being made in a single day

If the following or the only accounts of Jones Klein company what is the missing supplies balance? Cash $9000 accounts payable $4000 John Smith capital $9650

Supplies 4650

Which of the following statements regarding T account is accurate

T accounts are not used to maintain financial records

Which of the following is not a characteristic of an S corporation?

The corporations owners are personally responsible for the deaths of the business

What is the purpose of a discussion memorandum written by the FASB?

To explain the topic being considered in anticipation of an upcoming statement of financial accounting standards

A company purchased equipment costing 15000. They paid 1000 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include:

a debit to equipment for 14000 and a credit to accounts payable for 14000

The Journal Entry to record the purchase of equipment for 900 and furniture for 700 in a single transaction would include

a debit to equipment for 900, a credit to furniture for 700, and a credit to cash for 200.

The review of financial statements to assess their fairness and adherence to GAAP is

auditing

Which financial statement is reported as of a specific date?

balance sheet

A Journal entry containing more than one debit or more than one credit is called a

compound entry

Modern products paid cash to a creditor. To record this transaction, the accountant would:

debit Accounts Payable and credit Cash. (Cash is reduced by the payment, and therefore the cash account, an asset, is credited. The amount owed the creditor is reduced by the payment, and therefore the account payable account is debited.)

Which of the following types of accounts normally have debit balances?

expenses and assets

A description should accompany each entry made in the

general journal

When your business pays cash for salaries, assets decreases and expenses

increase

The process of recording transactions in a journal is referred to as

journalizing

When using a T account to determine an account balance, which of the following statements is incorrect?

net income from the income statement is used on the statement of owner's equity and the ending balance of the capital account, computed on the statement of owner's equity, is used on the balance sheet.

When an entry is made in the general journal,

the accounts to be credited should be indented.

The income statement shows

the amount of net income or net loss

If a business issues a check for $100 to purchase office supplies, What is the effect on the accounting equation?

total assets will remain the same

Withdrawals are reported on which of the following financial statements?

Statement of owner's equity

Which of the following statements is correct?

The general ledger contains the accounts that are used to prepare the financial statements

Which of the following statements is correct?

Compound entries affect more than one debit and/or more than one credit.

When using a T account to determine an account balance, which of the following statements is incorrect?

The balance always appears on the side of the t account on which the account increases

Kelly corporation reported net income for the year and December 31, 2021 $16,900 then discovered that an entry for revenue earn on December 30, 2021 in the amount of $1400 and not been journalized and posted. What is the net income after the correct in journal entry is journalized and posted?

$18,300

If the beginning capital balance for Williams consulting service is $23,000 net income is $4000 in the ending capital balance is $20,000 what were the withdrawals for the period?

$7,000

If a business receives $5000 on account from clients who owed money for services previously billed identify the effect on the accounting equation

Assets remain the same and owners equity remains the same

Which of the following statements regarding the balance ledger form is inaccurate

Displays multiple accounts within a single form

Colors company purchased a piece of machinery for 4000. The compay paid 1500 at the time of the purchase, and agreed to pay the remaining 2500 one month later. The entry to record this transaction would inlude which of the following elements.

The cash account indeneted about one-half inch from the left margin.

Which of the following statements is accurate?

The income statement contains only temporary accounts

If the owner of the business wants to see both the debit and the credit entry for a specific transaction, he would look in

The journal

Constantine corporation reporting that income for the year in the December 31, 2021 of $23,760 then discovered that the entry to pay the rent for December and the amount of $1600 was not journalized and post it. What is the net income after the correct in journal entry is journalized and posted

$22,160

If during the year total assets increase by $75,000 and total liabilities decrease by $16,000, by how much did owner's equity increase/decrease?

$91,000 increase

The account numbers from the ledger are recorded in the post reference column of the general journal

After each amount is posted

When rent is pre-paid which of the following occurs

Assets are unchanged

Standing at the end of the first month of operations for Jackson's catering service, the business had the following accounts cash 20,550 prepaid rent $500 equipment $7500 in accounts payable $4000. By the end of the month, Jackson and earned $41,450 of revenue and used 3060 of utilities expenses $6700 of rent expenses in $4320 of salary expenses. Calculate the net income to reported to be reported by the company for this first month.

$27,370

At the end of the first year of operations, Shapiros consulting services reported net income of $27,000. They also had account balances of cash $16,000 office supplies $3200 equipment 24,000 and accounts receivable $8000. The owners total investment for this first year was $15,000 and the owner withdrew $2000 for personal use. Calculate the ending balance to be reported on the statement of owners equity in the owners capital account.

$40,000

If during the year total assets increase by 77,000 liabilities decrease by 17,000, By how much did the owners equity increase/decrease?

$94,000 increase

The entity that has final authority over the financial reporting of publicly on corporations is the

Securities and exchange commission (SEC)

If the income statement covered a six month period ending on November 30, 2019 the third line of the income statement heading would read

Six month period ended November 30, 2019