ACC1 2.02 TestBank Questions for Accounting Objective 2.02 – Flashcards
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What is "A Greater Cause"?
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Primary Philanthropy and Community Service program of the Order.
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When preparing the Income Statement, after all account total debits and credits are entered correctly, verified and totaled, what is the next step?
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Double rule across both account columns or the total column only
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Mary is preparing a Balance Sheet. What must she do after she completes the Assets section?
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Prepare the Liabilities section
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If the beginning prepaid insurance balance is $3,400, and the ending value of the insurance is $1,200, the correct adjustment on the work sheet is to debit
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Insurance Expense and credit Prepaid Insurance $2,200
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John is preparing an Income Statement. He has written the titles of each expense account in the Expenses Section. What should John do NEXT?
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Write the balance of each expense account
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If the beginning balance prepaid insurance balance is $2,000, and the ending value of the insurance is $800, the correct adjustment on the work sheet it to debit:
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Insurance Expense and credit Prepaid Insurance $1,200
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Mary is preparing a Balance Sheet. When she completes the Owner's Equity section, what should the end result be?
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The Total Assets should equal the Total Liabilities plus the Owner's Equity
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If the beginning supplies balance is $2,200, and the ending supplies balance is $700, the correct adjustment on the work sheet is to debit:
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Supplies Expense and credit Supplies $1,500
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If the beginning supplies balance is $1,800, and the ending supplies balance is $300, the correct adjustment on the work sheet is to debit:
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Supplies Expense and credit Supplies $1,500
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When he applied for a bank loan, Robert was asked by the bank to develop a financial statement that would show the financial health of his business as of March 31. What is the FIRST step Robert will do to prepare this statement?
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Write the name of the company
