Random Chapters 1-4
Which side of the account increases the cash account?
What is a Debit?
The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is ___________
What is accrued?
The rights of the owners of a corporation.
What is Stockholders’ Equity?
Items such as supplies that will be used in the business in the future.
What are Prepaid Expenses?
Which of the following accounts should be closed to Retained Earnings at the end of the fiscal year?
What is Service Revenue?
Occurs when cash related to a future revenue or expense has been initially recorded as a liability or an asset.
What is a Deferral?
Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance
sheet as a(n)
What is an Asset?
Distribution of a corporation’s earnings to stockholders.
What are Dividends?
Which of the accounts below would be closed by posting a debit to the account?
What are Fees Earned?
A customer’s written promise to pay an amount and possibly interest at an agreed-upon rate.
What are Notes Receivable?
A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.
What is the Unadjusted Trial Balance?
Under this basis of accounting, revenues are recorded when services have been performed or products have been delivered to customers and expenses are reported in the same period as the related revenue.
What is the Accrual Basis of Accounting?
A list of the accounts used by a business is called the
What is a chart of accounts?
An entry that is prepared when an error has already been journalized and posted.
What is Correcting Journal Entry?
An act passed by Congress to restore public confidence and trust in the financial statements of companies.
What is Sarbanes-Oxley Act (SOX)
Which of the following entries records the payment of insurance for the current month?
What is Insurance Expense, debit; Cash, credit?
A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the ______
What is an income Statement?
As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called _________
What is depreciation?
Which of the following entries records the acquisition of office supplies on account?
What is Office Supplies, debit; Accounts Payable, credit?
An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20 or $5,420.00.
What is a slide?
The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to
Accounts Receivable for $500. The correcting entry would include a:
credit to Accounts Payable for $500
On December 1, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Provide the journal entry for this transaction.
Dec. 1 Notes Payable 200,000
Cash 200,000
(Made payment on note payable.)
May 24 Land 105,000
Cash 105,000
(Purchased land for business.)
What effects does this journal entry have on the accounts?
What is decreased Cash and increased Land?
The accounting cycle requires three trial balances be done. In what order should they be prepared?
What is unadjusted, adjusted, post-closing?
Computer Corporation is starting its computer programming business and has sold stock of $15,000. Identify how the accounting equation will be affected.
What are an increase in assets (Cash) and an increase in stockholders' equity (Common Stock)?