ACC101 Full || All Questions Answered Correctly.
An adjusting entries for unearned revenue affects correct answers Revenue and Liabilities
How will it affect total Assets in the balance sheet if tangible fixed assets are not depreciated at
the end of the period? correct answers Total Assets are overstated
How will it affect Income Statement if an accrued expense of $450 is forgotten to record at the
end of the period? correct answers Net Income in the Income Statement will be overstated for
$450
What accounting principle requires credit sales revenue also included in the income statement?
correct answers Accrual basis
Which kind of account is accumulated depreciation? correct answers Contra - asset account
Where is Accumulated depreciation reported? correct answers Balance sheet
Which statement is true about Mary's capital: correct answers The owner's equity account that
contains the amount invested in the sole proprietorship by Mary Smith plus the net income since
the company began minus the draws made by Mary Smith since the company began.
Which account of these accounts will be presented in Post-closing trial balance? correct answers
Retained Earnings
Adjusting entries at the end of an accounting period would not be required for which of the
following? correct answers Revenue that has been earned and recorded in the accounting records
At the end of the current accounting period, Johnson Company failed to record utilities
consumed during the period. Johnson will be billed for the utilities during the next accounting
period. As a result, current period liabilities, and income, respectively, are correct answers
Understate, overstate
How will the Financial Statements be affected if Accountant in the company forgot to adjust a
prepaid expense account at the end of the period? correct answers Assets in the Balance sheet
will be overstated and Expenses in the Income Statement will be understated
The following transactions, among others, occurred during August. Which transaction
represented an expense during August correct answers Rent a space for office on account. The
rental amount will be paid in the next 2 months
How many accounts does every business transaction affect at least? correct answers 2
Which type of information would be of most interest to creditors? correct answers Ability of the
company to pay debts
,The account used to record the investment of owner into the business is: correct answers The
owner's contributed capital account
If assets are $199,000 and liabilities are $132,000, then equity equals correct answers $67,000
Provide descriptions for this transaction:Debit inventory $8,000 and credit Account payable
$,8000 correct answers Buying inventory on credit $8,000
Failure to make adjusting entries for prepaid expense will result in correct answers
Understatement of expenses
The company buys a new car for personal use of the owner is recorded with below entry: correct
answers Credit cash and debit withdrawal
Which of the following errors would result in the trial balance still balancing? correct answers
Posted $500 to each account instead of $5000
The adjusting entry to record the earned but unpaid salaries of employees at the end of an
accounting period is: correct answers Debit Salaries Expense and credit Salaries Payable
Identity the consequences of not making adjustment for accrued expense correct answers
Understatement of liabilities
The company buys a new building for operation is recorded with below entry: correct answers
Credit cash and debit equipment
A cash outflow from the company into its owner is called a(n): correct answers Withdrawal
Liability created by purchasing goods and services on credit are: correct answers Accounts
payable
Photometer Company paid off $30,000 of its accounts payable in cash. What would be the
effects of this transaction on the accounting equation? correct answers Assets, $30,000 decrease;
liabilities, $30,000 decrease; equity, no effect.
How does Lead Company record by the billing of a client for $15,000 of service completed?
correct answers +$15,000 accounts receivable, +$15,000 revenue
Moffat Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. What is
the entry need to record when Moffat Company bill of a client for $25,000 of contract
completed? correct answers +$25,000 accounts receivable, +$25,000 revenue.
The balance in the prepaid insurance account before adjustment at the end of the year is $4,800,
which represents the insurance premiums for four months. The premiums were paid on
November 1. The adjusting entry required on December 31 is: correct answers Debit Insurance
Expense, $2,400; credit Prepaid Insurance, $2,400.
,A company might buy a service or product on credit. "On credit" implies that the cash payment
will occur: correct answers on a later date
Provide descriptions for this transaction:Increase cash $1,000 and Increase equity $,1000 correct
answers Investment of cash in business by owner or performed services for cash
Provide descriptions for this transaction:Increase cash $4,000 and Increase CONTRIBUTED
CAPITAL $4000 correct answers Investment of cash in business by owner
Provide descriptions for this transaction:Debit office supplies $8,000 and credit liability $,8000
correct answers Buying office supplies on credit $8,000
Provide descriptions for this transaction:Decrease cash $3500 and Decrease equity $3500 correct
answers Withdraw cash from the business by owner or paid cash for an expense
Items used in business operations, such as office pens and paper are several samples of: correct
answers Office supplies
The difference between a company's assets and its liabilities, or net assets is: correct answers
Equity
Resources owned or controlled by a company that are expected to yield future benefits are:
correct answers Assets
Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys
office equipment on credit for $75,000. What would be the effects of this transaction on the
accounting equation? correct answers Assets increase by $75,000 and liabilities increase by
$75,000.
Internal users of accounting information include: correct answers Managers.
A chart of accounts generally starts with which of the following types of accounts? correct
answers Asset accounts
Which of the following is a liability? correct answers Account payable
If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets,
liabilities, and equity? correct answers Assets would decrease $38,000, liabilities would decrease
$38,000, and equity would not change.
Assets created by selling goods and services on credit are: correct answers Accounts receivable.
A payment to an owner for personal use is called a(n): correct answers Withdrawal.
The properties used in operation activities of a business is called: correct answers Assets
, Which of the following is a liability? correct answers Note payable
Which of the following is not considered as subcategory of owner�s Equity? correct answers
Assets
Which of the following is not a liability? correct answers Short term investment
Which of the following is not a category or element of the balance sheet? correct answers
Expense
The account used to record the transfers of assets from a business to its owner is: correct answers
The owner's withdrawals account.
Reflects assumption that the business will continue operating instead of being closed or sold.
correct answers Going-Concern Assumption
A company must record its expenses incurred to generate the revenue reported at the same
period.It is about: correct answers Matching Principle
Which is the assumption stating that A business is accounted for separately from other business
entities, including its owner? correct answers Business Entity Assumption
Which are expected to be sold, collected or used within one year or the company�s operating
cycle? correct answers Current assets
Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and
investments by owners of $6,000. Its ending equity is: correct answers $274,000
Which of the following statements is true about assets? correct answers All of these
Net Income: correct answers Is the excess of revenues over expenses
Decreases in equity that represent costs of assets or services used to earn revenues are called:
correct answers Expenses
Accounting is an information and measurement system that: correct answers All of these.
Which of the following accounting principles would require that all goods and services
purchased should be recorded at cost? correct answers Cost principle
External users of accounting information include: correct answers All of these.
The description of the relation between a company's assets, liabilities, and equity, which is
expressed as Assets = Liabilities + Equity, is known as the: correct answers Accounting
equation.
An adjusting entries for unearned revenue affects correct answers Revenue and Liabilities
How will it affect total Assets in the balance sheet if tangible fixed assets are not depreciated at
the end of the period? correct answers Total Assets are overstated
How will it affect Income Statement if an accrued expense of $450 is forgotten to record at the
end of the period? correct answers Net Income in the Income Statement will be overstated for
$450
What accounting principle requires credit sales revenue also included in the income statement?
correct answers Accrual basis
Which kind of account is accumulated depreciation? correct answers Contra - asset account
Where is Accumulated depreciation reported? correct answers Balance sheet
Which statement is true about Mary's capital: correct answers The owner's equity account that
contains the amount invested in the sole proprietorship by Mary Smith plus the net income since
the company began minus the draws made by Mary Smith since the company began.
Which account of these accounts will be presented in Post-closing trial balance? correct answers
Retained Earnings
Adjusting entries at the end of an accounting period would not be required for which of the
following? correct answers Revenue that has been earned and recorded in the accounting records
At the end of the current accounting period, Johnson Company failed to record utilities
consumed during the period. Johnson will be billed for the utilities during the next accounting
period. As a result, current period liabilities, and income, respectively, are correct answers
Understate, overstate
How will the Financial Statements be affected if Accountant in the company forgot to adjust a
prepaid expense account at the end of the period? correct answers Assets in the Balance sheet
will be overstated and Expenses in the Income Statement will be understated
The following transactions, among others, occurred during August. Which transaction
represented an expense during August correct answers Rent a space for office on account. The
rental amount will be paid in the next 2 months
How many accounts does every business transaction affect at least? correct answers 2
Which type of information would be of most interest to creditors? correct answers Ability of the
company to pay debts
,The account used to record the investment of owner into the business is: correct answers The
owner's contributed capital account
If assets are $199,000 and liabilities are $132,000, then equity equals correct answers $67,000
Provide descriptions for this transaction:Debit inventory $8,000 and credit Account payable
$,8000 correct answers Buying inventory on credit $8,000
Failure to make adjusting entries for prepaid expense will result in correct answers
Understatement of expenses
The company buys a new car for personal use of the owner is recorded with below entry: correct
answers Credit cash and debit withdrawal
Which of the following errors would result in the trial balance still balancing? correct answers
Posted $500 to each account instead of $5000
The adjusting entry to record the earned but unpaid salaries of employees at the end of an
accounting period is: correct answers Debit Salaries Expense and credit Salaries Payable
Identity the consequences of not making adjustment for accrued expense correct answers
Understatement of liabilities
The company buys a new building for operation is recorded with below entry: correct answers
Credit cash and debit equipment
A cash outflow from the company into its owner is called a(n): correct answers Withdrawal
Liability created by purchasing goods and services on credit are: correct answers Accounts
payable
Photometer Company paid off $30,000 of its accounts payable in cash. What would be the
effects of this transaction on the accounting equation? correct answers Assets, $30,000 decrease;
liabilities, $30,000 decrease; equity, no effect.
How does Lead Company record by the billing of a client for $15,000 of service completed?
correct answers +$15,000 accounts receivable, +$15,000 revenue
Moffat Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. What is
the entry need to record when Moffat Company bill of a client for $25,000 of contract
completed? correct answers +$25,000 accounts receivable, +$25,000 revenue.
The balance in the prepaid insurance account before adjustment at the end of the year is $4,800,
which represents the insurance premiums for four months. The premiums were paid on
November 1. The adjusting entry required on December 31 is: correct answers Debit Insurance
Expense, $2,400; credit Prepaid Insurance, $2,400.
,A company might buy a service or product on credit. "On credit" implies that the cash payment
will occur: correct answers on a later date
Provide descriptions for this transaction:Increase cash $1,000 and Increase equity $,1000 correct
answers Investment of cash in business by owner or performed services for cash
Provide descriptions for this transaction:Increase cash $4,000 and Increase CONTRIBUTED
CAPITAL $4000 correct answers Investment of cash in business by owner
Provide descriptions for this transaction:Debit office supplies $8,000 and credit liability $,8000
correct answers Buying office supplies on credit $8,000
Provide descriptions for this transaction:Decrease cash $3500 and Decrease equity $3500 correct
answers Withdraw cash from the business by owner or paid cash for an expense
Items used in business operations, such as office pens and paper are several samples of: correct
answers Office supplies
The difference between a company's assets and its liabilities, or net assets is: correct answers
Equity
Resources owned or controlled by a company that are expected to yield future benefits are:
correct answers Assets
Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys
office equipment on credit for $75,000. What would be the effects of this transaction on the
accounting equation? correct answers Assets increase by $75,000 and liabilities increase by
$75,000.
Internal users of accounting information include: correct answers Managers.
A chart of accounts generally starts with which of the following types of accounts? correct
answers Asset accounts
Which of the following is a liability? correct answers Account payable
If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets,
liabilities, and equity? correct answers Assets would decrease $38,000, liabilities would decrease
$38,000, and equity would not change.
Assets created by selling goods and services on credit are: correct answers Accounts receivable.
A payment to an owner for personal use is called a(n): correct answers Withdrawal.
The properties used in operation activities of a business is called: correct answers Assets
, Which of the following is a liability? correct answers Note payable
Which of the following is not considered as subcategory of owner�s Equity? correct answers
Assets
Which of the following is not a liability? correct answers Short term investment
Which of the following is not a category or element of the balance sheet? correct answers
Expense
The account used to record the transfers of assets from a business to its owner is: correct answers
The owner's withdrawals account.
Reflects assumption that the business will continue operating instead of being closed or sold.
correct answers Going-Concern Assumption
A company must record its expenses incurred to generate the revenue reported at the same
period.It is about: correct answers Matching Principle
Which is the assumption stating that A business is accounted for separately from other business
entities, including its owner? correct answers Business Entity Assumption
Which are expected to be sold, collected or used within one year or the company�s operating
cycle? correct answers Current assets
Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and
investments by owners of $6,000. Its ending equity is: correct answers $274,000
Which of the following statements is true about assets? correct answers All of these
Net Income: correct answers Is the excess of revenues over expenses
Decreases in equity that represent costs of assets or services used to earn revenues are called:
correct answers Expenses
Accounting is an information and measurement system that: correct answers All of these.
Which of the following accounting principles would require that all goods and services
purchased should be recorded at cost? correct answers Cost principle
External users of accounting information include: correct answers All of these.
The description of the relation between a company's assets, liabilities, and equity, which is
expressed as Assets = Liabilities + Equity, is known as the: correct answers Accounting
equation.
