Filters
Question type
Study Flashcards

Identify each of the following accounts as a revenue (R) , expense (E) , asset (A) , liability (L) , or equity (SE) . -Fees Revenue


A) L
B) SE
C) R
D) E
E) A

F) A) and B)
G) B) and E)

Correct Answer

verifed

verified

Explain the debt ratio and its use in analyzing a company's financial condition.

Correct Answer

verifed

verified

The debt ratio is calculated by dividing...

View Answer

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100.The client paid immediately.Identify the general journal entry below that Gi Gi's will make to record the transaction.


A)  Rental Revenue 100 Instruction Revenue 150 Cash 250\begin{array} { | l | r | r | } \hline \text { Rental Revenue } & 100 & \\\hline \text { Instruction Revenue } & 150 & \\\hline \text { Cash } & & 250 \\\hline\end{array}
B)  Accounts Payable 250 Rental Revenue 100 Instruction Revenue 150\begin{array} { | l | r | r | } \hline \text { Accounts Payable } & 250 & \\\hline \text { Rental Revenue } & & 100 \\\hline \text { Instruction Revenue } & & 150 \\\hline\end{array}
C)  Cash 250 Rental Revenue 100 Instruction Revenue 150\begin{array} { | l | r | r | } \hline \text { Cash } & 250 & \\\hline \text { Rental Revenue } & & 100 \\\hline \text { Instruction Revenue } & & 150 \\\hline\end{array}
D)  Accounts Receivable 250 Rental Revenue 100 Instruction Revenue 150\begin{array} { | l | r | r | } \hline \text { Accounts Receivable } & 250 & \\\hline \text { Rental Revenue } & & 100 \\\hline \text { Instruction Revenue } & & 150 \\\hline\end{array}
E)  Unearned Revenue 250 Rental Revenue 100 Instruction Revenue 150\begin{array} { | l | r | r | } \hline \text { Unearned Revenue } & 250 & \\\hline \text { Rental Revenue } & & 100 \\\hline \text { Instruction Revenue } & & 150 \\\hline\end{array}

F) A) and D)
G) C) and E)

Correct Answer

verifed

verified

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :


A) Account.
B) Trial balance.
C) Journal.
D) T-account.
E) Balance column account.

F) A) and E)
G) C) and E)

Correct Answer

verifed

verified

Based on the following trial balance for Sally's Salon,prepare an income statement,statement of retained earnings,and a balance sheet.Sally Crawford,the sole stockholder,made no additional investments in the company during the year.  Sally’s Salon Trial Balance December 31 Cash $6,500 Accounts receivable 475 Beauty supplies 2,500 Beauty shop equipment 17,00 Accounts payable $745 Common Stock 21,155 Dividends 36,000 Revenue earned 72,000 Beauty supplies expense 3,429 Rent expense 6,000 Wages expense 22,000 Totals $93,900$93,900\begin{array}{c} \text { Sally's Salon}\\ \text { Trial Balance}\\ \text { December 31}\\\begin{array}{|l|r|r|}\hline \text { Cash } & \$ 6,500 \\\hline \text { Accounts receivable } & 475 \\\hline \text { Beauty supplies } & 2,500 \\\hline \text { Beauty shop equipment } & 17,00 \\\hline \text { Accounts payable } & & \$ 745 \\\hline \text { Common Stock } & & 21,155 \\\hline \text { Dividends } & 36,000 & \\\hline \text { Revenue earned } & & 72,000 \\\hline \text { Beauty supplies expense } & 3,429 & \\\hline \text { Rent expense } & 6,000 & \\\hline \text { Wages expense } & 22,000 & \\\hline \text { Totals } & \$ 93,900 & \$ 93,900 \\\hline \end{array}\end{array}

Correct Answer

verifed

verified

None...

View Answer

A credit is used to record an increase in all of the following accounts except:


A) Accounts Payable
B) Service Revenue
C) Unearned Revenue
D) Wages Expense
E) Common Stock

F) C) and E)
G) None of the above

Correct Answer

verifed

verified

All of the following statements accurately describe the debt ratio except.


A) It is of use to both internal and external users of accounting information.
B) A relatively high ratio is always desirable.
C) The dividing line for a high and low ratio varies from industry to industry.
D) Many factors such as a company's age, stability, profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio.
E) The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt.

F) A) and C)
G) C) and E)

Correct Answer

verifed

verified

A business uses a credit to record:


A) An increase in an expense account.
B) A decrease in an asset account.
C) A decrease in an unearned revenue account.
D) A decrease in a revenue account.
E) A decrease in a common stock account.

F) C) and D)
G) A) and E)

Correct Answer

verifed

verified

A revenue account normally has a debit balance.

A) True
B) False

Correct Answer

verifed

verified

Asset accounts are decreased by debits.

A) True
B) False

Correct Answer

verifed

verified

Match the following terms with the appropriate definition. -Double-entry accounting


A) Verifiable evidence that transactions have occurred used to record accounting information.
B) Decrease in an asset, dividend and expense account, and increase in a liability, common stock and revenue account; recorded on the right side of a T-account.
C) An increase in an asset and expense account, and decrease in a liability, common stock,
and revenue account; recorded on the left side of a T-account.
D) A company's chronological record of each transaction in one place that shows debits and credits for each transaction.
E) An accounting system where each transaction affects and is recorded in at least two
accounts; the sum of the debits for each entry must equal the sum of its credits.
F) The process of transferring journal entry information to the ledger accounts.
G) A record of the increases and decreases in a specific asset, liability, equity, revenue, or
expense item.
H) A record containing all the accounts of a company and their balances.
I) A list of accounts and their balances at a point in time.
J) A representation of a ledger account used to understand the effects of transactions.

K) H) and I)
L) B) and H)

Correct Answer

verifed

verified

The steps in the accounting process focus on analyzing and recording financial transactions and events within a company.Those steps are shown below.Using the number system of 1 as the first step and 4 as the last step in the process,number the steps in the correct order in which they would occur (1 thru 4). _____ Record relevant transactions and events in a journal, _____ Post journal information to the ledger accounts _____ Prepare and analyze the trial balance _____ Analyzing each transaction

Correct Answer

verifed

verified

___2__ Record relevant transac...

View Answer

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year: Assets Liabilities Beginning of the year $114,000 $68,000 End of the year 135,000 73,000 If there were no stockholder investments in the business and no dividends paid during the year,what was the amount of net income earned by Jerry's Butcher Shop?

Correct Answer

verifed

verified

Beginning equity = $114,000 - $68,000 = ...

View Answer

Jackson Advertising Co.had assets of $475,000; liabilities of $275,500; and equity of $199,500.Calculate its debt ratio.

Correct Answer

verifed

verified

Debt Ratio = Total L...

View Answer

Lu Lu's Catering has a debt ratio equal to .3 and its competitor,Able's Bakery,has a debt ratio equal to .7.Determine the statement below that is correct.


A) Able's Bakery has a smaller percentage of its assets financed with liabilities as compared to Lu Lu's.
B) Able's Bakery's financial leverage is less than Lu Lu's.
C) Able's Bakery's financial leverage is greater than Lu Lu's.
D) Lu Lu's has a higher risk from its financial leverage.
E) Higher financial leverage involves lower risk.

F) C) and E)
G) C) and D)

Correct Answer

verifed

verified

A record containing all the separate accounts for a company as well as all of their balances is called the________

Correct Answer

verifed

verified

Figgaro Company's accounts and their balances,as of the end of August,are included below.All accounts have normal balances:  Accounts receivable $36,000 Cash $27,000 Equipment 59,000 Advertising expense 5,000 Service revernues earned 75,000 Accounts payable 31,000 Rent expense 3,600 Dividends 24,000 Office supplies 1,500 Salaries expense 30,000 Notes payable 22,000 Common Stock 58,100\begin{array} { l l l } \text { Accounts receivable } & \$ 36,000 & \text { Cash } &\$ 27,000 \\\text { Equipment } & 59,000 &\text { Advertising expense } & 5,000 \\\text { Service revernues earned } & 75,000& \text { Accounts payable } & 31,000 \\\text { Rent expense } & 3,600& \text { Dividends } & 24,000 \\\text { Office supplies } & 1,500 &\text { Salaries expense } & 30,000 \\\text { Notes payable } & 22,000& \text { Common Stock } & 58,100\end{array} a.Calculate net income. b.Determine the amount of total equity to be shown on the August 31 balance sheet.

Correct Answer

verifed

verified

A \[\begin{array}{l}
\begin{array} { l l ...

View Answer

A law firm billed a client $1,800 for work performed in the current month.Which of the following general journal entries will the firm make to record this transaction?


A) Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800.
B) Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800.
C) Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800.
D) Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800.
E) Debit Cash, $1,800; credit Accounts Receivable, $1,800.

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

Indicate whether a debit or credit entry would be required to record the following changes in each account

Premises
To decrease Cash
To increase Common Stock
To decrease Accounts Payable.
To increase Salaries Expense.
To decrease Supplies.
To increase Revenue.
To decrease Accounts Receivable.
To increase Dividends.
Responses
debit
credit

Correct Answer

To decrease Cash
To increase Common Stock
To decrease Accounts Payable.
To increase Salaries Expense.
To decrease Supplies.
To increase Revenue.
To decrease Accounts Receivable.
To increase Dividends.

List the four steps in recording transactions.

Correct Answer

verifed

verified

1.Analyze each transaction and event fro...

View Answer

Showing 121 - 140 of 293

Related Exams

Exam 1

Accounting in Business

331 Questions

Exam 3

Adjusting Accounts for Financial Statements

445 Questions

Exam 4

Accounting for Merchandising Operations

267 Questions

Exam 5

Inventories and Cost of Sales

258 Questions

Exam 6

Cash, fraud, and Internal Controls

230 Questions

Exam 7

Accounting for Receivables

237 Questions

Exam 8

Accounting for Long-Term Assets

283 Questions

Exam 9

Accounting for Current Liabilities

258 Questions

Exam 10

Accounting for Long-Term Liabilities

250 Questions

Exam 11

Corporate Reporting and Analysis

247 Questions

Exam 12

Reporting Cash Flows

265 Questions

Exam 13

Analysis of Financial Statements

263 Questions

Exam 14

Time Value of Money

84 Questions

Exam 15

Investments

228 Questions

Exam 16

Partnership Accounting

189 Questions

Show Answer