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Accountants refer to an economic event as a

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Transaction

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The process of recording transactions has become more efficient because

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Computers are used in processing business events

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Communication of economic events is the part of the accounting process that involves

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Preparing account reports

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The use of computers in recording business events

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Has made the recording process more efficient

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The accounting process is correctly sequenced as

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Identification, recording, communication

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Accounting consists of three basic activities which are related to economic events of an organization. These include

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Identifying, recording, and communicating

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All of the following statements are correct except

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Good decision-making depends on good information INCORRECT

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Which of the following is an external user of accounting information?

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Labor unions

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Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process?

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Recording

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The origins of accounting are generally attributed to the work of

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Luca Pacioli

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Financial accounting provides economic and financial information for all of the following except

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Managers

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Ethics are the standards of conduct by which one's actions are judged as

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All of these

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Generally accepted accounting principles are

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Standards that indicate how to report economic events

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The cost principle requires that when assets are acquired, they be recorded at

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Cost

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The private sector organization involved in developing accounting principles is the

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Financial Accounting Standards Board

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GAAP stands for

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Generally Accepted Accounting Principles

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Financial information that is capable of making a difference in a decision is

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Relevant

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The proprietorship form of business organization

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Represents the largest number of businesses in the US

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The economic entity assumption requires that the activities

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Of an entity be kept separate from the activities of its owner

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The basic accounting equation may be expressed as

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All of these

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Liabilities

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Are existing debts and obligations

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A dividend is

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A distribution of the company's earnings to its stockholders.

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Revenues would not result from

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Issuance of common stock

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Stockholders' equity is decreased by all of the following except

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Sales of stock

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A net loss will result during a time period when

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Expenses exceed revenues

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If total liabilities increased by $15,000 and stockholders' equity increased by $10,000 during a period of time, then total assets must change by what amount and direction during that same period?

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a $25,000 decrease INCORRECT

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If total assets equal $345,000 and total stockholders' equity equal $120,000, then total liabilities must equal

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$225,000

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Stockholders' equity is increased by

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Revenues

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Stockholder's equity is decreased by

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Expenses

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The right side of an account

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Is the credit side

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Credits

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Decrease assets and increase liabilities

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A debit to an asset account indicates

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An increase in the asset

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The normal balance of any account is the

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Side which increases that account

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The double-entry system requires that each transaction must be recorded

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In at least 2 different accounts

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A credit is not the normal balance for which account listed below?

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Dividends Account/Drawings Account

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An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

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Credit a different asset account for $700-

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An account will have a credit balance if the

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Credits exceed the debits

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Which account below is not a subdivision of retained earnings?

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Common stock-

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A credit to a liability account

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Indicates an increase in the amount owed to creditors

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TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

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Credited a liability for $2,100-

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On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include

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A Debit to supplies and a credit to Accounts Payable-

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At January 1, 2014, Alligator Industries reported retained earnings of $130,000. During 2014, Alligator had a net loss of $30,000 and paid dividends of $15,000. At December 31, 2014, the amount of retained earnings is

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$85,000

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On July 7, 2014, Hidden Camera Enterprises performed cash services of $1,700. The entry to record this transaction would include

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A debit of Cash of $1,700-

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The usual sequence of steps in the transaction recording process is:

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Analyze->Journal->Ledger

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Another name for journal is

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Book of original entry

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The revenue recognition principle dictates that revenue should be recognized in the accounting period

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In which the performance obligation is satisfied

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In a service-type business, revenue is recognized

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When the service is performed

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Adjusting entries are required

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Because some costs expire with the passage of time and have not yet been journalized

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Accrued revenues are

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Earned but not yet received or recorded

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Accrued expenses are

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Incurred but not yet paid or recorded

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