ACCT 2301
Financial Accounting Standards Board (FASB)
Generally Accepted Accounted principles (GAAP) are currently formulated by the
net income/ average total assets
How do you find ROA (Return on Assets)
accumulated depreciation
Which of the following accounts is NOT closed?
Debit cash credit accounts payable
Posting a $2500 purchase of office supplies on account appears as
financial position on a specific date
The balance sheet reports the
Debit office supplies Credit Accounts Receivable
You purchase office supplies on account
Liabilities/ assets
Debt ratio
assets/ liabilities
current ratio
account balances after adjustments
The adjusted trial balance shows
Recording the usage of office supplies during the period
Which is an example of a deferral (prepaid) adjusting entry?
Unearned Revenue
Which of the following accounts is a liability?
Cash, Salaries payable, and retained earnings
Which of the following accounts may appear on a post-closing trial balance?
Accumulated Depreciation
Which of the following accounts would be included in the property, plant, and equipment category of the classified balance sheet?
Stockholders not personally liable for entity's debts
Which of the following characteristics best describes a corporation?
Employees (not taxing authorities, customers, or investors)
Which of the following is not an external user of a business's financial information?
Accrual accounting records revenue only when it is earned
Which of the following is true of accrual basis accounting and cash basis accounting?
Faithful representation concept
Which of the following requires accounting information to be complete, neutral, and free from material error?
Journalize actions as they occur
Which of the following steps of the accounting cycle is not completed at the end of the period?
Journalize transactions, post to the accounts, prepare a trial balance
Which sequence summarizes the accounting process?
Total debits exceed total credits
Which situation indicates a net loss within the income statement section of the worksheet
Sole proprietorship
Which type of business organization is owned by only one owner?
liquidity (think cash)
Assets are listed on the balance sheet in order of their
Debits
The left side of an account is used to record which of the following?
Debit Accounts Payable Credit cash
A company purchased office supplies on account for $800. How do you record the payment on account of the office supplies?
is an internal document that helps summarize data for the preparation of financial statements
A worksheet
measures business activities, communicates results to decision makers, and processes information into reports
Accounting is the information system that
True
Accounts Payable is increased with a credit
updating the accounts at the end of the period
Adjusting the accounts is the process of
an account
The detailed record of the changes in a particular asset, liability, or stockholders equity is called?
revenue to be recorded only after the business has satisfied its performance obligations
The revenue recognition principle requires
zero out everything, transfer revenues, expenses, and dividends to retained earnings, and bring retained earnings account to its correct ending balance
What do closing entries accomplish?
