Lenders, shareholders, governments and customers are example of what type of users?
A. External users
B. Internal users
What is A. External Users
100
Which account is considered a liability?
A. unearned revenue
B. common stock
C. prepaid expenses
What is A. unearned revenue
100
Accounting is defined as the process of recording and classifying business transactions.
what is False
Accounting is The action or process of keeping financial accounts.
100
3. Which of the following is an example of the accounting equation?
a. assets= liabilities + equity
b. liabilities= assets + equity
c. eqity = liability + equity
What is a. assets= liabilities + equity
100
What is the normal side of an asset?
A. Debit
B Credit
What is A. Debit
200
In fiscal periods semiammually is considered ___ months out of the year?
A. 3
B. 6
C. 9
What is B. 6
200
Which account is considered an asset?
A. Common stock
B. Notes receivable
C. Accounts payable
What is B. Notes receivable
200
Asset cost- salvage value/ useful life is an example of straight line depreciation?
A. true
B. false
What is A. True
200
______ = ___COGS____
AVERAGE INVENTORY
A. Inventory Turnover
B. Acid test ratio
What is A. Inventory Turnover
200
what is the normal balance for liabilities?
A. Debit
B. Credit
What is B. Credit
300
In accrual accounting expenses are recognized when_______ and revenue is recolonized when _____________
A. incurred, earned
B. earned, incurred
What is A. incurred, earned
300
Which account is considered an equity account?
A. Cash
B. Retained earnings
C. Revenue
What is B. Retained earnings
300
An exmaple of Direct Method includes list of money, reciepts and payments
A. True
B. False
What is A. True
300
Which of the following will give you the total of net income?
a. cash – accounts payable
b. revenue - expenses
c. revenue – assets
What is b. revenue - expenses
300
what is the normal balance for expenses?
A. Debit
B. Credit
What is A. Debit
400
In the example 2/12, N/35, the 12 represents:
A. credit period
B. discount percent
C. the number of days the discount is available
What is C. the number of days the discount is available
400
Which is considered a permanent account?
A. Retained earnings
B. Supplies
C. Rent
What is A. Retained earnings
400
First in first out is called LIFO
A. True
B. False
What is B. False
First in first out is called FIFO
400
Which is the formula to find the ending of statement of returned earnings?
A. cash + net income – accounts payable
B. net income - dividends
C. beginning returned earnings + net income – dividends
What is C. beginning returned earnings + net income – dividends
400
the company Mr. Youngs pays 350 for supplies in cash. What would be the correct entry?
A. Debit cash 350 credit supplies 350
B. Credit cash 350 debit supplies 350
What is A. Debit cash 350 credit supplies 350
500
Merchandise inventory , trade and purchase discounts, and transport cost are examples of:
A. merchandise purchases
B. merchandise sales
What is A. merchandise purchases
500
Which of the folowing is considered a statement of Stockholders Equity?
A. Statement of financial position
B. Statement of operating activities
C. Statement of changes in capital accounts
What is C. Statement of changes in capital accounts
500
Indirect method usesed adjustements for Net income to operation cash flow
A. True
B. False
What is A. True
500
16. An example of the double declining balance rate is:
A. 2 x (100%/ 5) = 40%
B. 100%/ 5 = 20%
C. 4 x (100%/ 5) = 40%
What is A. 2 x (100%/ 5) = 40%
500
Mr. young provided Mrs. jones spa services on acct for $500. What would be the general journal entry?
A fees earned 500 dr accounts recievable 500 cr
B. accounts recievable 500 dr. fees earned 500 cr
What is B. accounts recievable 500 dr. fees earned 500 cr