ACC2100 - Quiz 3
An account has $300 on the debit side and $900 on the credit side. How much is the account balance?
A credit of $600
What journal entry is recorded as a result of issuing stock to investors for cash?
A debit to Cash and a credit to Common Stock
An account is a part of the financial information system and is described by all expect which one of the following?
An account is not a source document. An account has three basic parts - a title, a debit side, and a credit side.
What is the correct sequence of events
Analyze a transaction; record it in the journal; post it to the ledger
Which accounts normally have debit balances?
Assets, dividends, and expenses
At September 1, 2017, Five-O Inc. reported retained earnings of $136,000. During the month, Five-O generated revenues of $20,000, incurred expenses of $12,000, purchased equipment for $5,000 and paid dividends of $2,000. What is the balance in retained earnings at September 30, 2017?
Beg R.E + Net Income - Dividends = New Retained Earnings
Which of the following is not one of the primary types of the financing activities in the statement of cash flows?
Buying equipment. That is a part of the investing activities of a firm.
Assets are increased by credits
False. They're increased by debits.
The effect on the basic accounting equation of performing services for cash are to
Increase assets and increase stockholders' equity
A revenue account
Is increased by credits
What type of account is unearned revenue
Liability
Transactions are recorded in chronological order in the journal.
True
Every transaction affects at least two account (t/f)
True. There must be at least one debit, and one credit account.
If total liabilities increase by 5000 then
assets increase by $5,000, or stockholders' equity decreases by $5,000
If an expense is paid with cash
assets will decrease.
Genesis Company buys equipment for $900 machine on credit. This transaction will immediately effect the
balance sheet only. When equipment is purchased on credit, assets are increased and liabilities are increased. These are both balance sheet accounts.
What is the first place every transaction is recorded?
in the journal
During 2014, Gibson Company assets decreased $50,000 and its liabilities decreased $90,000. Its stockholders' equity
increased $40,000
Receipt of an unearned revenue
increases an asset; increases a liability
If cash is received in advance from a customer
liabilities will increase and so well cash (an asset)
Payment of dividends
reduces both cash and retained earnings
Accounts are listed on the trial balance in
the order that they appear in the ledger
Expenses decrease retained earnings
true