question

an information system that provides reports t sers about the economic activities and condition of a business

answer

accounting

question

three parts of a financial statement are

answer

income statement owners equity balance sheet

question

fees earned =

answer

revenue

question

a business earns ____ by selling items or providing a service

answer

revenue

question

cost of doing business like food and rent

answer

expenses

question

What is the accounting equation

answer

assets= liabilites + owners equity

question

____ is what you own

answer

assets

question

examples of assets

answer

cash, accounts recievable, car, equipment, computers, inventory, land

question

debts that a business owes

answer

liabilities

question

examples of liabilities

answer

accounts payable note payable salary payable

question

what the owners own of the assets

answer

owners equity

question

owners equity = ___ ____

answer

net worth

question

a business that provide service rather products -cleaning services -car wash

answer

service business

question

a business that sells products they purchse from other businesses to customers -walmart target

answer

merchandising busines

question

a business that changes raw materials into products that are sold to customers -BMW

answer

manufacturing business

question

a business that sells services and merchandise -verizon

answer

hybrid company

question

____ rules of accounting

answer

GAAP

question

___ ___ ____ what i do as a business and hwat i do personally must be kept seperate. If owning 2 business those must be kept seperate

answer

business entity concept

question

___ ____ : i have to record this business transaction at whatever dollar amoun that business transaction occured. record what you buy and sell them for

answer

cost concept

question

___ ____ ___: everything is used in the currency that the company is based in

answer

monitary unit assumption

question

___ ____: business owned by 1 person

answer

sole proprietorship

question

_____ more than 1 person formin a business -still have unlimited liability partnership agreement: still have to divide up profits and loses

answer

partnership

question

____ owned by stock holders

answer

corporation

question

___ unlimited liability concept, all you lose is what you invest. acts as a sole proprietorship

answer

LLC

question

___ value systems, beliefs

answer

ethics

question

Out of the three financial statements which do you prepare first

answer

Income statement

question

List the steps for preparing an income statement

answer

heading: name of company year end date 12/31/12 - fees earned - Expenses - Total expenses - Net income (fees earned - total expenses)

question

Out of the three financial statements which do you prepare second

answer

statement of owners equity

question

list the steps for preparing statement of owers equity

answer

beginning capital ADD: net income DEDUCT: drawing Ending capital

question

Out of the three financial statements which do you prepare last

answer

balance sheet

question

list the steps for preparing a balance sheet

answer

Assets: LIABILITIES Cash: ACC PAY: ACC REC: TABER CAPITAL SUPPLIES: TOTAL ASSETS: OWNER EQUITY(ACC PAY + PAY CAPITAL)

question

cash is a

answer

asset

question

wages expense is a

answer

owners equity, expense

question

accoucts payable is

answer

liability

question

fees earned is

answer

owners equity

question

supplies is a

answer

asset

question

land is an

answer

asset

question

What is the normal balance

answer

wherever the plus side is for that account

question

in a t account what is the normal balance for assets

answer

debit

question

in a t account what is the normal balance for liabilities

answer

credit

question

in a t account what is the normal balance for owners equity or capital

answer

credit

question

in a t account what is the normal balance for cash

answer

debit

question

in a t account what is the normal balance for accounts payable

answer

credit

question

in a t account what is the normal balance for accounts recievable

answer

debit

question

in a t account what is the normal balance for supplies

answer

debit

question

in a t account what is the normal balance for fees earned

answer

credit

question

in a t account what is the normal balance for expenses

answer

debit

question

in a t account what is the normal balance for investment

answer

credit

question

in a t account what is the normal balance for drawing

answer

debit

question

a ___ ____ uses all the numbers from the balances of the spread sheet or the balances from the t accounts

answer

trial balance

question

List the steps for making a unadjusted trial balance

answer

Heading: trail balance Date: debit/credit cash acc rec supplies acc pay capital drawing fees earned expenses Totals for both debit and credit

question

The ___ ____ should always match up with t accounts

answer

journal entry

question

On April 25, Gregg Repair Service extended an offer of $115,000 for land that had been priced for sale at $140,000. On May 3, Gregg Repair Service accepted the seller's counteroffer of $127,000. On June 20, the land was assessed at a value of $88,000 for property tax purposes. On August 4, Gregg Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in Gregg Repair Service's records?

answer

$127,000

question

If total liabilities decreased by $55,000 during a period of time and owner's equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is

answer

$5,000 increase

question

Revenues are reported when

answer

work is completed on the job

question

The assets and liabilities of the company are $175,000 and $40,000, respectively. Owner's equity should equal

answer

$135,000

question

Allen Marks is the sole owner and operator of Great Marks Company. As of the end of its accounting period, December 31, 2011, Great Marks Company has assets of $940,000 and liabilities of $300,000. During 2012, Allen Marks invested an additional $65,000 and withdrew $45,000 from the business. What is the amount of net income during 2012, assuming that as of December 31, 2012, assets were $995,000, and liabilities were $270,000?

answer

$ 65,000

question

A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to

answer

decrease an asset, decrease a liability

question

Denzel Jones owns and operates Crystal Cleaning Company. Recently, Denzel withdrew $18,000 from Crystal Cleaning, and he contributed $14,000, in his name, to Habitat for Humanity. The contribution of the $14,000 should be recorded on the accounting records of which of the following entities?

answer

Denzel Jones' personal records and Habitat for Humanity

question

Donner Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $120,000. The Focus Company initially offered to buy the land for $107,000. The companies settled on a purchase price of $115,000. On the same day, another piece of land on the same block sold for $122,000. Under the cost concept, what is the amount that will be used to record this transaction in the accounting records?

answer

$115,000

question

Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?

answer

assets increase $55,000; owner's equity increases $55,000

question

Clifford Moore is starting his computer programming business and has deposited in initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected.

answer

Increase Assets (Cash) and increase Owner's Equity (Clifford Moore, Capital)

question

Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be

answer

Equipment 4,000 accountd payable 2725 cash 1275

question

Which of the following accounts would be increased with a credit?

answer

Accounts Payable, Unearned revenue, Collins Capital

question

#3 quiz 2

answer

...

question

may 24 land 53000 cash 53000 purchased land for business

answer

Increase to Land and decrease to Cash

question

May 31 Supplies 120 ACC PAY 120 ??????????????????

answer

purchased supplies on account

question

Which of the following groups of accounts have a normal debit balance?

answer

assets, expenses

question

#7 quiz 2

answer

...

question

Which of the following entries records the investment of cash by Ron York, owner of a proprietorship?

answer

debit Cash; credit Ron York, Capital

question

The payment for the monthly rent will require the following entry

answer

Debit Rent Expense and Credit Cash

question

April 23 cash 14000 Jim Xu, capital 14000 Invest cash in Xu Co.

answer

Increase Cash and increase Capital

ACC test 1 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards