Accy 201 Burney Exam 1 Verified Questions And Answers Graded A+

Accounting - An information system that provides reports to users about the economic activities & condition of a business Accounts payable - What account is credited in a normal accrual expense journal entry? Accounts Receivable - Type of journal account where revenue is earned although no cash has been received (asset) Accounts receivable - What account is debited in a normal accrual revenue journal entry? Accrual - What type of expense or revenue is it when services are performed before cash is received? Asset - What type of account are prepaid expenses/insurance placed with? Balance sheet - Which financial report is a list of assets, liabilities, and stockholders equity? Business entity - What assumption of accounting requires a company to limit the economic data in financial reports that relate to specific activities of business? Common stock, revenue - What two accounts increase stockholders equity? Credit - Right column of T chart Credit - What is the normal balance for a liability account? Credit - What is the normal balance for a retained earnings account?Credit - What is the normal balance for a revenue account? Credit - What is the normal balance for a stockholders equity account? Credit - What type of transaction (credit or debit) shows an increase in stockholders equity? Credit - What type of transaction is a decrease in assets (debit or credit)? Debit - Left column of T chart Debit - What is the normal balance for a dividend account? Debit - What is the normal balance for an asset account?