Extra Credit Review
Which of the following is NOT revenue?
Sale of merchandise
Initial investment of cash by owner
Performance of services
Rental of property
An account will have a credit balance if the:
Debits exceed credits
Last transaction entered was a credit
Credits exceed debits
First transaction entered was a credit
On April 1, King Industries purchased supplies of $500 on account. The entry to record the purchase will include:
A debit to Supplies and a credit to Cash
A debit to Supplies and a credit to Accounts Payable
A debit to Supplies Expense and a credit to Accounts Receivable
A debit to Accounts Receivable and a credit to Supplies
Owner’s equity can be described as:
Supplier’s claim on total assets
Debtor claim on total assets
Owner’s claim on total assets
Creditor’s claim on total assets
Which of the following lists gives the correct sequence of accounting procedures?
Financial statements, trial balance, ledger, journal
Journal, ledger, trial balance, financial statements
Ledger, trial balance, journal, financial statements
Financial statements, journal, ledger, trial balance
Which of the following transactions does not affect owner’s equity?
The owner invested cash into the business
The owner withdrew cash from the business
The business earned revenue
The business received cash collections from amounts owed by customers
Which of the following accounts is NOT a liability?
Mortgage payable
Accounts payable
Unearned revenue
All of the above are liabilities
Investments increase owner’s equity. Drawings ______ owner’s equity.
Increase
Decrease
Either decrease or increase
Have no effect on
Paying off a $10,000 notes payable with cash has what effect on a firm’s owner’s equity? A) increase
Increase
Decrease
No effect
Removal
Assets less liabilities is equal to:
Net Income
Net increase in Equity
Owner’s Equity
Property, Plant, and Equipment
Revenues would NOT result from
Sale of merchandise
Initial investment of cash by owner
Performance of services
Rental of property
A net loss will result during a time period when:
Liabilities exceed assets
Drawings exceed investments
Expenses exceed revenues
Revenues exceed expenses
Credits
Decrease both assets and liabilities
Decrease assets and increase liabilities
Increase both assets and liabilities
Increase assets and decrease liabilities
A proprietorship is a business
Owned by one person
Owned by two or more persons
Organized as a separate legal entity under state corporation law
Owned by a governmental agency
The left side of an account is
Blank
A description of the account
The debit side
The balance of the account
A list of accounts and their balances at a given time is called a(n)
Journal
Posting
Trial balance
Income statement
Which of the following journal entries is recorded correctly and in the standard format?
Wages Expense 600 Cash 1,500 Advertising Expense 900
Wages Expense 600 Advertising Expense 900 Cash 1,500
Cash 1,500 Wages Expense 600 Advertising Expense 900
Wages Expense 600 Advertising Expense 900 Cash 1,500
During April 2015, its first month of operations, the owner of SHARK Enterprises invested cash of $25,000. SHARK had cash revenues of $4,000 and paid expenses of $7,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at April 30?
$3,000 credit
$22,000 debit
$29,000 debit
$18,000 credit
During 2015, its first year of operations, Benny’s Bakery had revenues of $60,000 and expenses of $33,000. The business had owner drawings of $18,000. What is the amount of owner’s equity at December 31, 2015?
$0
$18,000 debit
$9,000 credit
$27,000 credit
Unearned revenue is classified as:
An asset account
A revenue account
A contra-asset account
A liability
When an owner withdraws cash or other assets from a business for personal use, these withdrawals are called:
Expenses
Drawings
Depletions
Revenues
Owner’s Capital equals
Investments minus revenues minus expenses minus drawings
Investments plus revenues plus expenses plus drawings
Investments plus revenues minus expenses minus drawings
Investments plus revenues plus expenses minus drawings
According to the revenue recognition principle, revenue is recorded when:
The order is received
The service is performed
Cash is received
No returns are made
At the beginning of the month, XEEPS Company had a beginning balance in its owner’s capital account of $100,000. Xee invested another $25,000. The company earned net income of $40,000. At the end of the month, Xee withdrew $15,000. What is the ending balance in owner’s capital?
$125,000
$150,000
$165,000
$180,000
Jiu Auto Company performed repair services for cash. As a result of this transaction:
Assets will increase, liabilities will increase
Assets will increase, owner’s equity will increase
Owner’s equity will increase, assets will decrease
Assets will both increase and decrease
Beast Cleaning Service
Adjusted Trial Balance
January 31, 2017
| Account | Debit | Credit |
| Cash | 5000 | |
| Accounts Receivable | 1000 | |
| Supplies | 200 | |
| Prepaid Insurance | 2000 | |
| Equipment | 3000 | |
| Accounts Payable | 2500 | |
| Owner's Capital | 5000 | |
| Drawings | 1200 | |
| Service Revenue | 5700 | |
| Salaries & Wages Expense | 900 | |
| Insurance Expense | 100 | |
| Supplies Expense | 600 | |
| Depreciation Expense | 100 | |
| Accumulated Depreciation | 100 | |
| Totals | 13,300 | 13,300 |
What is the net income at Beast Cleaning?
$1,200
$4,000
$1,700
$5,700
This financial statement reports a snapshot of what a company owes and owes as of a specific date:
Balance Sheet
Income Statement
Statement of Owner’s Equity
Trial Balance
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