Accounting test 1
A debit represent an increase in
An asset
Examining a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly process is called
Analyzing
Cost accountants provide a wide variety Of services including
Analyzing the cost effectiveness of products produced and services provided
The financial statement that shows the state of the firms assets, liabilities, and owners equity on a specific date is called
Balance sheet
And internal out of her kennel she professional recognition in internal auditing by receiving which of the following certificates
CIA
Which of the following does not use nonprofit accounting guidelines and procedures
Churches
A public account and can she professional recognition as a certified public accountant by meeting certain educational and experience requirements as determined by each state
False
According to the business entity Concept, a proprietor may include non-business assets and liabilities in the business entities accounting records
False
According to the business entity concept, a proprietor may include non-business assets and liabilities in the business entitys accounting records
False
Any item a business owns that will provide future benefit is called owners equity
False
Conny made a purchase on account of printer paper To last for about three months this transaction increase supplies and decrease account payable
False
Cost accounting is used to develop a financial plan for a company
False
Elysa Paid $135 for utilities for her office. This transaction increase cash and the expense account
False
Equity accounts normally have a debit balances
False
If the revenue of a period Exceeds the expenses, the excess Represent a net loss
False
It is not necessary to measure a business transaction in dollars
False
Liabilities represent an inside interest in the business
False
Liability accounts normally have debit balances
False
Mandy withdraws $600 from her business. This transaction increases cash but decreases owners
False
Payment of rent on account decreases the cash account
False
The accounting equation shows the relationship among the three basic accounting elements assets expenses and owners equity
False
The principal accounting officer of the company is called a public accountant
False
The statement of owners equity shows the state of the business and a specific date
False
The term profit and loss statement or operating statement are sometimes used as synonyms for the balance sheet
False
Writing or using one of the latest technological advances to enter a transaction and In the accounting records is called summarizing
False
And accounting period of 12 months duration usually referred to as a
Fiscal year
Totals on the debit and credit sites to determine the balance of an account are known
Footings
The financial statement that should be completed first is better
IncomeStatement
May Received $7000 in cash from a client for professional services rendered. This transaction would
Increase asset and increase owners equity
Megan started Her business by investing $30,000 in cash. This transaction would
Increase assets and increase owners equity
An increase in asset account may be offset by
Increase in owners equity
Jason purchased office equipment For $4800 in cash. This transaction would
Increase one asset And decrease another asset
Jason purchased Office equipment for $4800 in cash. This transaction would
Increase one assets and decrease another asset
And investment of cash in a business by the owner
Increases cash
A person who Reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate and I've been following may be referred to as
Internal auditor
A person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate and are being followed may be referred to as
Internal auditor
Which of the following does not use nonprofit accounting guidelines and procedures ?
Propriertorship
Increases two owners equity may be from
Revenue that is derived from sales of goods or services
The accounting function of classifying
Sorting and group in similar items together
Bringing together various items of information to determine or explain a result is
Summarizing
And example of an expense is
Supplies consumed
The drawing account should be used to show
The amount the owner has taken out of the business
A business that makes a product to sell is called a manufacturing business
True
A trial balance is a list of all accounts showing the title and balance of each account
True
Accountants Design accounting information systems and analyze and interpret information
True
And accounts payable is an on written promise to pay a supplier for assets Purchased Or services rendered
True
Generally excepted accounting principles are Procedures and violence to be follow in the accounting reporting process
True
Increases in owners equity are entered as credits
True
Other terms used for owners equity includes net worth and capital
True
Recognizing the effects of transactions on assets, Liabilities, owners equity, revenue, and expenses of a business in the processing function
True
Since supplies last for several months they are recorded as assets
True
Stockholders may have very little influence and business decision
True
The accounting equation must remaining in balance
True
The balance of a T account is on the side with the larger footing
True
The balance sheet reports assets liabilities and owners equity on a specific date
True
The difference between the footings of an account is called a balance
True
The financial accounting standards Board develops generally excepted accounting principles to provide some assurance that companies are reporting business activities in a similar manner
True
The income statement and statement of owners equity provide information covering a period of time
True
The income statement provides information about events over a period of a month, year, or other. Period Of time
True
The purpose of accounting is to provide financial information about the current operations and financial conditions of a business to individuals and organizations
True
The sum of the debits must equal the sum of the credits on the trial balance
True
The trial balance is used in preparing financial statements
True
When services are performed for which payment will be received later, accounts receivable increases
True
Withdrawal of cashAnd other assets by owner for personal reasons decreases owners equity
True
A decrease in owners equity May result from
Withdrawal of cash from the business by the owner
A corporation is usually managed by
A professional manager
Examples of revenue accounts include all the following except
A trial balance is taken periodically to check the equality of the debits and credits
A person who records sorts and Files accounting information in accounting records may be referred to as
Accounting clerk
types of business is owned by stockholders
Corporations
A CMA is a certified marketing auditor
False
Interpreting refers to reviewing eventThat have taken place and determining how they affect the business
False
Is the revenue of a period Exceeds the expenses in excess represents a net loss
False
Public accountant do not offer which of the following services
Marketing analysis
A business that purchases a product from another business to sell to customers is called
Merchandise in business
The accounting equation may be expressed as
Owners equity = Assets - liability's
Which part of the accounting process involves recognizing the effect of transactions on assets, liabilities, owners equity, revenue, and expenses of a business
Processing
The balance sheet
Shows the assets equal liabilities plus owners equity
A business entity is an individual, Association, or organization with control over economic resources and which engages in economic activities
True
At least two accounts are affected by every transaction
True
The six major steps of the accounting process are analyzing recording classifying, summarizing, reporting, and interpreting
True
A partnership is owned by stockholders Or shareholders and is managed by them
False
Sue lee paid $1200 for her Employees salaries. This transaction would
Decrease Assets and decrease owners equity
Accounts that affect owners equity are
Expenses, capital, and revenue