Accounting Chapter 3 review Byrd

accounting concepts

100

total financial claims do not have to equal the total cost of the property

False

200

true or false.  Increases and decreases are caused by certain accounts

True

300

Free enterprise is based upon owning property

yes

400

owners claims to the assets of the business are liabilities

false

500

an account is a record of only the increase in the balance of a specific item such as cash or equipment

fasle

account classification

100

1. If the creditor’s financial claim to property totals $1,000 and the owner’s financial claim to property totals $11,000, the property value is (A) $10,000, (B) $11,000, (C) $12,000, (D) $1,000

12,000

200

The word equities refers to claims against the assets of a business by (A) both creditors and owners, (B) creditors only, (C) owners only, (D) customers only

creditor and owners

300

purchase an computer on account affects which accounts

accounts payable and computer equipment

400

Each of the following is a business expense except a payment for (A) advertising, (B) monthly rent, (C) utility bills, (D) office furniture

office furniture

500

. The account Accounts Receivable is an example of a(n) (A) asset, (B) liability, (C) owner’s equity, (D) Accounts payable

asset

Analyze transactions, A, O or Liabiltiy

100

Marvin Kaye, Capital 

Owners equity

200

accounts payable

liabilty

300

repair tools

asset

400

cash in bank

assets

500

You just purchased a car on account.  Which two accounts are affected

Accts payable, and automobile account

Revenue, expense and cash or accts receivable

100

purchase pencils to write orders for sales. What are pencis considered

expense

200

The lawyer firm of "That is Mine and This is His" wrote a contract and sold it to client for 10,000. 

Revenue or sale

300

Purchase 5 computers to complete  business tasks but then sold one to another company because didn't need it for a check for $500.00 What accounts is affected?

cash

400

paper for the computer

expense

500

received a check from the customer

affects cash and accounts receivable

which accouts are affected

100

owners withrew cash for personal se

Owners equity and cash

200

You work for ABC accounting and agree to sale of accounting services on account.  What accounts are affected

sales and accounts receivable.

300

Purchased 10,000 worth of supplies for your accounting firm.  Paid on account.  What two accounts are affected.

supplies and accounts payable

400

owner invested 750 in office equipment into the business.  What two accounts are affected.

increase office equipment and increase OE

500

received a check from a customer for services

increase cash and owners equity