ACC1100 Study Guide EXAM 1 PDF

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These are questions summarized as the study guide for the first exam...

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1. Accounting is the information system that: A) Measures business activities B) Processes information into financial reports C) Communicates results to interested user D) All of the above 2. Generally Accepted Accounting Principles (GAAP) are currently formulated by: A) American Institute of Certified Public Accountants (AICPA) B) Securities and Exchange Commission (SEC) C) Financial Accounting Standards Board (FASB) D) Professor …. (3. Which of the following is an asset account? A) Unearned Revenue B) Accounts Receivable C) Notes Payable D) Wages Payable

4. Which of the following is a liability account? A) Prepaid Advertising B) Cash C) Unearned Revenue D) Building balance.

5. Accounts Payable is a(n). A) Asset; debit B) Asset; credit C) Liability; debit D Liability; credit

6. For Office Supplies, the category of account and its normal balance is

A) Assets and a debit balance C) Liabilities and a debit balance B) Assets and a credit balance D) Liabilities and a credit balance

7 Which of the following statements is TRUE of the Owner, Capital account? A) It is an owner's equity account that has a normal credit balance B) It is an owner's equity account that has a normal debit balance C) It is a liability account that has a normal debit balance D) It is a liability account that has a normal credit balance

8. Which of the following represents the expanded accounting equation? A) Assets=Liabilities plus Capital plus Withdrawals plus Revenues plus Expenses B) Assets=Liabilities plus Capital plus Withdrawals plus Revenues minus Expenses C) Assets=Liabilities plus Capital minus Withdrawals minus Revenues minus Expenses (D) Assets=Liabilities plus Capital minus Withdrawals plus Revenues minus Expenses 9 A business purchases equipment with $8,000 cash. Which of the following accounts is debited? A) Cash B) Equipment C) Accounts Payable D) Smith, Capital

10.------------represent the right to receive cash in the future from customers for goods sold or for services performed. A) Equity B) Expenses C) Accounts Receivable D) Accounts Payable

11. Joe Tilden contributes cash to his business in exchange for capital. The two accounts involved in this transaction are A) Tilden, Capital and Accounts Payable B) Accounts Payable and Cash C) Tilden, Capital and Accounts Receivable D) Cash and Tilden, Capital

12. Which of the following statements is TRUE of revenues? A) Revenues decrease equity, so a revenue account's normal balance is a debit balance B) Revenues decrease equity, so a revenue account's normal balance is a credit balance C) Revenues increase equity, so a revenue account's normal balance is a debit balance D Revenues increase equity, so a revenue account's normal balance is a credit balance

13. For expenses, the category of account and its normal balance is A) Equity and a credit balance B) Assets and a credit balance C) Equity and a debit balance D) Assets and a debit balance 14. Green Lawns Company earned $500 for landscaping services performed on account. Which of the following accounts increased as a result of this transaction? A) Accounts Payable B) Supplies C) Cash D Service Revenue 15 Van Jones is the owner of a sole proprietorship. Van took $5,000 from the business for personal use. Which of the following accounts is debited?

A) Cash B Jones, Withdrawals C) Expenses D) Jones, Capital

16. Jones Supply Services paid $350 cash, the amount on account to a vendor. Which of the following accounts decrease? A) Jones, Capital B) Office Supplies C) Supplies Expense D) Accounts Payable 17. Which of the following represents the correct flow of accounting data? A) Journal, trial balance, ledger B) Journal, ledger, trial balance C)Ledger, journal, trial balance D) Ledger, trial balance, journal

18. Which of the following financial statements shows the owner's withdrawals? A) Balance sheet B) Income statement C) Statement of owner's equity D) All of the above

19. Which financial statement provides information on economic resources the company has (asset); debts the company owes (liabilities), owner's capital? A) Balance sheet B) Income statement C) Statement of owner's equity D) All of the above

20. Which financial statement provides information on profitability for a particular period of time? A) Balance sheet B) Income statement C) Statement of owner's equity D) All of the above 21. Which of the following is included on the balance sheet? A) Revenues B) Expenses C) Owner, Withdrawals D Assets...