ACC1 2.02 TestBank Questions for Accounting Objective 2.02 – Flashcards
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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?
answer
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:
answer
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:
answer
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:
answer
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
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