Accounting 110 Chapter 1 quiz

A credit to an asset account was posted to an expense account this would cause a

expense to be understated

To close the Fees Earned​ account

debit Fees​ Earned; credit Income Summary.

Which of the following would be used to record the billing of fees earned?

Debit accounts receivable and credit rental fees

Which of the following accounts should be closed to Income Summary at the end of the fiscal​ year?

Utilities Expense B. Fees Earned C. Salaries Expense

A chart of accounts is

a listing of all the accounts used by a company

A compound entry

a transaction involving more than one debit​ and/or credit.

Which of the following entries would be used to record the billing of fees​ earned?

debit accounts receivable and credit rental fees

As accumulated depreciation is​ recorded, the book​ value:

decreases

A ledger

includes all company accounts and their balances

closing entries will affect

owners capital

A list of all accounts from the ledger with their ending balances is called a

trial balance

Which of the following will decrease owner equity?

a withdrawal by owner

Journal entries that are needed in order to update account balances for internal business transactions​ (such as supplies and prepaid​ rent) at the end of the period​ are:

adjusting entries

A contra-asset ​is:

an account with an opposite balance of a normal asset.

A debit may signify a

an increase in an asset accounts

Items owned by a business such as land, supplies and equipment are known as

assets

A debit to an expense account was posted to an asset account. This would​ cause:

assets to be overstated

Accumulated Depreciation is found on which of the following financial​ statements?

balance sheet

on which financial statement would you find the ending balance in the capital account?

balance sheet and owners equity statement

The cost of an asset less accumulated depreciation​ equals:

book value

Vics mart collects $200 of its accounts receivable. the expanding accounting equation impact is

cash increases and accounts receivable decreases $200

M. Smuts showed a net income of​ $5,000. The entry to close the Income Summary account would include​ a:

credit to M. Smuts​ Capital, $5,000, debit to income summary $5,000

The beginning balance in computers account was $3,000. The company purchased an additional $1,000 worth of computers . The ending balance in the account is

debit of 4,000

extreme home bought equipment on account for $3,000. The entry would include

debit to equipment, credit to accounts payable

Samantha purchased a five year insurance policy for $ 6,480. The adjusting entry for one month would include​ a

debit to insurance expense $108

Extreme Home bought painting equipment on account for​ $3,000. The entry would​ include:

debit to​ Equipment, $3,000; credit to Accounts​ Payable, $3,000.

Mary withdrew cash to her new business, what effect will this have?

decrease in assets, decrease owners equity

If the adjustment for Supplies used during the period was NOT​ made

expenses would be too low

the trial balance

includes all accounts with a ledger balance. ensures that debits equal credits. includes​ assets, liabilities,​ capital, withdrawals, revenues and expenses.

The financial statement that shows business results in terms of revenue and expenses is

income statement

What financial statement is prepared first?

income statement

when revenue is closed

income summary will be credited

A chart of accounts

is a list of accounts used by company

A revenue should be recorded when

it is earned

business transactions are always recorded in the

journal

A debit to a liability account was posted to an expense account. This would​ cause:

liabilities to be overstated

A credit to a liability account was posted to the capital account. This would​ cause:

liabilities to be understated

The order of the steps to prepare the worksheet​ are:

prepare the trial​ balance, complete​ adjustments, prepare the adjusted trial​ balance, extend the respective totals to the Income Statement and Balance Sheet columns

Of the following​ accounts, which might appear in the adjusted trial​ balance, but not in the post minus closing trial​ balance?

salary expense

The accumulated depreciation will appear in which of the following worksheet statement​ columns?

the balance sheet credit

On a​ worksheet, the income statement debit column totals​ $10,500 and the credit column totals​ $10,300. Which of the following statements is​ correct?

the company had a net loss of $200

After closing the revenue and expense​ accounts, Income Summary showed a debit balance of​ $1,500. Which of the following statements is​ true?

the company had a net loss of 1,500

After closing the revenue and expense​ accounts, Income Summary showed a debit balance of $ 1,800. Which of the following statements is​ true?

the company had a net loss of 1,800

Which of the following errors would cause the trial balance to be out of​ balance?

the payment of an account payable for​ $400 was recorded as a debit to Accounts Payable for​ $400 and a credit to Cash for​ $4,000.

Closing entries are​ prepared:

to clear all temporary accounts to zero.. at the end of the accounting period. to update the Capital balance.

A list of all the accounts from the ledger with their ending balances is called​ a

trial balance

Which of the following accounts is a temporary​ account?

withdrawals

Which of the following groups of accounts have normal debit balance?

assets, expenses withdrawals

Which of the following are both on the balance sheet and statement of owners equity?

capital

The first step of the accounting cycle is

analyzing and recording business transactions into a journal.

Which of the following groups of accounts have a normal debit​ balance?

assests, withdrawls, expenses

a general journal

book of orignal entry

The Income Summary account shows debits of $ 30,096 and credits of $ 20,107. This results in​ a:

net loss of $9,898

Cash has a normal balance of $1,400. After collecting $600 , the balance in the account is

$2,000 debit

Strum hardware has assets for $60,000, what are the total new assets if he purchases new equipment for $5,000?

$55,000

On which financial statement would you find the ending balance in the Capital​ account?

Balance sheet statement of owners equity

A compound entry is

A transaction involving more than one debit./credit

During the month of​ October, Ford advertised on the Internet. Ford received the bill for $ 800 in​ October, but waited until November to pay the advertising expense. The journal entry to record the payment in November​ is:

Accounts​ Payable, debit;​ Cash, credit

​Riley's Book Review billed customers​ $550. The journal entry to record this transaction​ is:

Accounts​ Receivable, debit​ $550; Editing​ Fees, credit​ $550

Jack withdraws cash to pay for for his personal cell phone bill

Decrease in cash, increase in withdrawals

The balance in the Rent Expense account on the worksheet was $ 170. The journal entry to close the Rent Expense account​ is:

Income Summary 170 Rent Expense 170

Which of the following types of accounts has a normal credit​ balance?

Revenue

which of the following types of accounts has a normal credit balance?

Revenues

Unlimited Doors showed supplies available during the year of​ $1,900. A count of the supplies on hand as of October 31 is​ $800. The adjusting entry for Store Supplies would​ include

a debit to store supplies expense for $1,100

the trial balance lists accounts

in the same order of the ledger

A ledger

includes all company accounts and their balance

Which should not appear on the balance sheet?

rent expense