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ACG Exam 1 USF Solved 2024 100%
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ACG Exam 1 USF Solved 2024 100%
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ACG Exam 1 USF Solved 2024 100%A company buys a product that will affect both, short-term assets and accounts payable.
This is an example of what concept? - ANS-Dual effects concept
A company buys a product worth 200 dollars, it later is worth 300 dollars. What principle
states the product is worth 300 dollars? - ANS-Cost Principle
A company earns revenue when it is received, not earned. This is? - ANS-Revenue
recognition principle
A company gives users information that may or may not cause the sale to go on. This is
an example of: - ANS-Full disclosure
A company pays $20000 for a building, but its value is now $30000. What principle
states the value is $20000? - ANS-Historical Cost
A company records a revenue when they earned it, not received it. What principle is
this? - ANS-Revenue recognition
ABC Company borrowed on a 6 month, 10% note payable for $5,000 on 10/1/15.
Assuming no adjusting entries were made yet, what adjusting entry for interest will they
need to make at year end on 12/31?
A: Debit: Interest expense $500 and Credit: Interest Payable $500
B:Debit: Interest expense $250 and Credit: Int. Payable $250
C: Debit: Interest receivable $250 and Credit: Int. Income $250
D: Debit: Interest expense $125 and Credit: Interest Pay. $125 - ANS-D
All but which of the following accounts are liabilities on the balance sheet?
A: Notes payable
B: Unearned Revenues
C: Accrued liabilities
D: Dividends - ANS-D
All but which of the following are on a balance sheet?
A: Expenses
B: Assets
C: Payables
D: Retained earnings - ANS-A
All but which of the following are temporary accounts that are closed at the end of the
year?
, A: Unearned revenues
B: Interest income
C: Salaries expense
D: Service revenue - ANS-A
All of the following are current assets except:
A: Cash
B: Prepaid expenses
C: Equipment
D: Supplies - ANS-C
Balance Sheet equation: - ANS-A=L+SE
Cainas Cookies purchases Supplies on 1/1/16 for $800. Upon a count of the supplies,
Cainas determines there are $250 of supplies on hand at 1/31. What entry does she
need to make?
A: Debit: Supplies $800 and Credit: Cash $800
B: Debit: Supplies Expense $250 and Credit: Supplies $250
C: Debit: Supplies Expense $550 and Credit: Supplies $550
D: Debit: Prepaid Supplies $550 and Credit: Supplies Exp $550 - ANS-D
Developed to provide guidelines for financial accounting Practices: - ANS-GAAP
In a T-account, list the debits and credits (positive or negative) for each:
Assets:
Liabilities:
Stockholder equity: - ANS-Assets: + Dr/ - CR
Liabilities: - Dr/ + CR
SE: - DR/ + CR
Income Statement Equation - ANS-Revenue
-Expenses
= Net Income
Jorge receives a gas bill for $200 on 1/28, which will be paid on 2/15, and he makes the
correct adjusting journal entry. What accounting principle is he following?
A: Historical Cost
B: Revenue Recognition
C: Matching Principle
D: Conservatism - ANS-C
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