Financial Statements
Which financial statement reports a company's Assets, Liabilities, and Stockholder's Equity?
Balance Sheet
An increase in Cash is recorded as a debit or credit?
Debit
A company purchases $600 of supplies for cash. What is the journal entry?
Debit: Supplies $600
Credit: Cash $600
Under _____ Accounting, revenue is generally recognized when it is earned.
Accrual
Which account would be closed at the end of the accounting period?
A. Cash
B. Accounts Receivable
C. Rent Expense
D. Unearned Revenue
C. Rent Expense
Which financial statement shows how well a company performed over a period of time by reporting revenues and expenses?
Income Statement
An increase in Accounts Payable is recorded as a debit or credit?
Credit
A company purchases $2,000 of equipment on account.
What is the journal entry?
Debit: Equipment $2,000
Credit: Accounts Payable $2,000
A company performs $900 of services on September 20, but doesnt recieve the cash until October 15.
Under Accrual Accounting, In which month is revenue recorded?
September
Which account would NOT be closed?
A. Service Revenue
B. Salary Expense
C. Accumulated Depreciation
D. Dividends
C. Accumulate Depreciation
What information flows from the Income Statement to the Statement of Retained Earnings?
Net Income
Which of the following normally has a debit balance?
A. Service Revenue
B. Accounts Payable
C. Common Stock
D. Supplies
D. Supplies
A company performs $1,800 of services for cash.
Debit: Cash $1,800
Credit: Service Revenue $1,800
Which of the following is NOT one of the types of adjusting entries listed.
A. Accruals
B. Deferrals
C. Depreciation
D. Transactions
D. Transactions
What is the formula for the current Ratio?
Current Assets / Current Liabilities
Parker Company has:
Cash: $12,000
Accounts Receivable: $24,000
Inventory: $17,000
Land: $80,000
Accounts Payable: $31,000
What is Parker company's total Assets?
$133,000
Accounts Payable has a beginning balance of $3,200. During the period, there are:
Debit postings = $800
Credit postings = $1,500
What is the Ending Balance?
$3,900 Credit
A dentist purchases $1,400 of supplies. The dentist pays $500 cash upfront and the rest they will pay later.
What is the journal entry?
Debit: Supplies $1,400
Credit: Cash $500
Credit: Accounts Payable $900
On January 1st, River Company pays $3,600 for 12 months of rent and records it as Prepaid Rent.
What adjusting entry should be made at the end of January?
Debit: Rent Expense $300
Credit: Prepaid Rent $300
Apple wood Company has:
Current Assets = $54,000
Current Liabilities = $36,000
What is the company's current ratio?
1.50
Blue Company begins the year with $42,000 Retained Earnings. During the year: Revenue = $110,000, Expenses = $72,000, Dividends = $13,000.
What is their ending Retained Earnings?
$67,000
Which accounts have a normal Debit balance?
Prepaid Rent, Unearned Revenue, Salary Expense, Common Stock, Service Revenue.
Prepaid Rent and Salary Expense
A consulting company performs $4,800 of services for a client. The client pays $1,700 cash immediately and agrees to pay the remainder later.
Prepare the journal entry
Debit: Cash 1,700
Debit: Accounts Receivable $3,100
Credit: Service Revenue $4,800
Beginning supplies = $2,100
Supplies purchased during the year = $1,700
Supplies remaining at year-end = $1,250
How much should Supplies Expense be recognized?
Supplies Expense = $2,550
A company reports:
Cash = $18,000
Accounts Receivable = $25,000
Inventory = $31,000
Accounts payable = $32,000
Current Notes payable = $18,000
Dividends = $30,000
What is Current Ratio?
1.48