Accounting CH 2- Mrs. Ladner

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer's Cleaning Service records this transaction?

Cash, debit; Office Supplies, credit

If the two totals of a trial balance are not equal, it could be due to

an error in determining the account balances, such as a balance being incorrectly computed

A credit signifies a decrease in

assets

Which side of the account increases the cash account

debit

The classification and normal balance of the accounts payable accounts are

liability, credit balance

Which of the following is an internal report that will determine if debit balances equal credit balances in the ledger? chart of accounts, income statement, trial balance, or account reconciliation

trial balance

Match each of the following accounts with its proper account group. a. Assets b. Liabilities c. Owner's Equity d. Revenue e. Expenses 31. Unearned Rent 32. Prepaid Insurance 33. Fees Earned 34. Patents 35. Chris Clark, Drawing

31. B (Unearned Rent- Liability) 32. A (Prepaid Insurance- Asset) 33. D (Fees Earned- Revenue) 34. A (Patents- Asset) 35. C (Chris Clark, Drawing- Owner's Equity)

Which of the following accounts is a liability?

Accounts Payable

Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?

Accounts Payable, debit; Cash, credit

Office supplies purchased by Janer's Cleaning Service on account were returned. Which of the following entries for Janer's Cleaning Sercive records this transaction?

Accounts Payable, debit; Office Supplies, credit

Which of the following accounted would be increased with a credit?

Accounts Payable; Unearned Revenue; Collings, Capital

Which of the following is NOT considered to be a liability

Accounts Receivable

Match each of the following accounts with the account type that best describes it. Each letter may be used more than once. a. Asset b. Liability c. Owner's Equity 45. Accounts payable 46. Wages Expense 47. Joan Smith, Capital 48. Accounts Receivable 49. Joan Smith, Drawing 50. Land

Assets 48. Accounts Receivable 50. Land Liabilities 45. Accounts payable Owner's Equity 46. Wages Expense 47. Joan Smith, Capital 49. Joan Smith, Drawing

Which of the following is the correct accounting equation?

Assets = Liabilities + Equity.

Which of the following groups of accounts have a normal debit balance a. revenues, liabilities, and capital b. capital and assets c. assets and expenses d. liabilities and capital

Assets and expenses

Accounting Equation

Assets= Liabilities + Owner's Equity - Owner's Drawing + Revenues - Expenses

Match each of the following accounts to the side of the T account on which its normal balance would appear. a. Debit b. Credit 36. John Smith, Capital 37. Accounts Receivable 38. Accounts Payable 39. Fees Earned 40. Copyrights 41. Utilities Expense 42. Notes Payable 43. Unearned Revenues 44. John Smith, Drawing

Debits 37. Accounts Receivable 40. Copyrights 41. Utilities Expense 44. John Smith, Drawing Credits 36. John Smith, Capital 38. Accounts Payable 39. Fees Earned 42. Notes Payable 43. Unearned Revenues

The initials GAAP stands for

Generally Accepted Accounting Principles

Which of the following accounts is an owner's equity account

Ross Morris, Capital

All of the following accounts are increased with a debit EXCEPT Land, Cash, Unearned Revenue, or Accounts Receivable

Unearned Revenue

A cash payment is recorded in the cash account as

a credit

Match each of the following items to the financial statements where it can be found. Each letter may be used more than once. a. Balance Sheet b. Income Statement c. Statement of cash flows d. Statement of Owner's Equity 51. Increase in owner's equity 52. Revenues 53. Supplies 54. Land 55. Accounts Payable 56. Accounts Receivable 57. Operating Activities 58. Wages Expense 59. Fees Earned 60. Net increase in cash

a. Balance Sheet 53. Supplies 54. Land 55. Accounts Payable 56. Accounts Receivable b. Income Statement 52. Revenues 58. Wages Expense 59. Fees Earned c. Statement of cash flows 57. Operating Activities 60. Net increase in cash d. Statement of Owner's Equity 51. Increase in owner's equity

Financial reports are used by a. management b. creditors c. investors d. all of the above

all of the above

A list of the accounts used by a business is called the

chart of accounts

Expenses can result from

consuming services

A trial balance is prepared to

discover errors that affect the equality of debits and credits

Accounts are classified in the ledger

in accordance with their appearance in the financial statements

The debit side of an account

is on the left side

The process of initially recording a business transaction is called

journalizing

The classification and normal balance of the drawing accounts are

owner's equity, debit balance

Goods purchased on account for future use in the business, such as supplies, are called

prepaid expenses

Most businesses in the United states are

proprietorships

A debit signifies a decrease in

revenues

Which of the following types of accounts have a normal credit balance a. liabilities and expenses b. assets and liabilities c. capital and drawing d. revenues and capital

revenues and capital

An account is said to have a debit balance if

the amount of the debits exceeds the amount of the credits