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ACCT 2301 - Midterm Reviewed questions with verified answers.
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ACCT 2301 - Midterm Reviewedquestions with verified answers.
The area of accounting aimed at servicing the decision making needs of internal users is ANS -
Managerial accounting
Which of the following is not true regarding a Certified Public Accountant? ANS -Cannot hold any other
certificate other than a CPA
Which of the following factors are part of the Fraud Triangle? ANS -Opportunity, Pressure, and
Rationalization
The Securities and Exchange Commission (SEC) has given the task of setting GAAP to the: ANS -FASB
A partnership ANS -Has unlimited liability for its partners
If a company uses $1300 of its cash to purchase supplies, the effect of the accounting equation would
be: ANS -One asset increases $1300 of its cash to purchase supplies, and another asset decreases $1300,
causing no effects
If equity is $300,000 and liabilities are $192,000, then assets equal: ANS -$429,000
Outflows of cash and other resources to stockholders are: ANS -Dividends
Assets created by selling goods and services on credit are: ANS -Accounts Receivable
The basic financial statements include all of the following except: ANS -Statement of changes in assets
Accounts payable appear on which of the following statements? ANS -Balance Sheet
, The accounting equation for Long Company shows an increase in its assets and an increase in its
liabilities. Which of the following transactions could have caused that effect? ANS -Equipment was
purchased on credit
Unearned revenues are generally: ANS -Liabilities created when a customer pays in advance for products
or services before the revenue is earned.
A company's ledger is: ANS -A record containing all accounts and their balance used by the company
A debit ANS -is always the left hand side of a T-account
A credit used to record an increase in all of the following accounts except ANS -Wages Expense
Identify the account below that is classified as an asset in a company's chart of accounts: ANS -Accounts
Receivable
Which of the following is not an asset account? ANS -Services Revenue
A business uses a credit to record ANS -A decrease in an asset account
Gloria Catering provided $1,000 of catering services and billed its client for the amount owed.
Determine the journal entry that is needed. ANS -Debit: Accounts Receivable Credit: Catering Revenue
Russel Co. received a $400 utility bill for the current month's electricity. It is not due until the end of the
next month which is when they intend to pay it. Determine the correct journal entry. ANS -Debit:
Utilities Expense Credit: Accounts Payable
Smart Consulting, paid cash dividends of $2,000 to its common stockholders. Determine the correct
journal entry. ANS -Debit: Dividends Credit: Cash
The process of transferring general journal entry information to the ledger is called ANS -Posting
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