Accounting 101 F EX Prep

Which of the following situations is an example of an accrual?

One user of accounting information with an Indirect Financial interest in a business is

The purchase of an asset on CREDIT

What is my net income if I earned Revenues of $25,000 and had expenses of $12,000 ?

Depreciation(in accounting) refers to the

The BEST definition of assets is the

Purchases are traditionally recognized in the accounting records when

Accumulated Depreciation is classified as a (an)

After closing entries have posted, which of the following is most likely to have a balance?

The primary purpose of the trial balance is to test the

Sales Discounts have a normal balance of a

Accounts receivable has a normal balance of a Debit

A controlling account can be found in

which of the following is not a permanent account?

All the following are qualitative characteristics of accounting information except

Which of the following is not considered in computing net cost of purchases?

Rent Expense has a normal balance of a Credit

Office supplies are expensed

Freight out has a normal balance of a

Which of the following is not considered an operating expense?

A liability is recognized when

The cost of doing business is also known as

Which of the following sequences describes the usual sequence in the accounting cycle?

Consulting Revenue has a normal balance of a Credit

A Chart of Accounts is a table of contents for a

Which of the following statements is not necessarily true about a proper journal entry?

A primary user of accounting information with a direct financial interest in the business is

Which of the following is an example of a deferral?

Adjustments for prepaid expenses

If we earn $500 cash from the sale of merchandise we debit cash for $500 ?

The purchase of an asset for CASH

Gross margin equals the difference between net sales and

Which of the following is managed by a board of directors

Which of the following is most likely to appear on the balance sheet as a current liability?

If a business owner withraws $100 from the account we debit cash

Prepaid Insurance has a normal balance of a Debit

Which of the following accounts is not closed during the closing process?

Freight In has a normal balance of a

If we purchase $80 in supplies on account we would debit accounts payable $80 ?

Purchase Discounts have a normal balance of a

Which of the following events does NOT require a journal entry?

If I opened a business with $100K...what happens to that $100K

Accounts payable has a Normal balance of a Debit

When expenses exceed revenues

which of the following is considered to be a separate entity from its owners?

Which of the following is NOT a valid statement of the accounting equation?

If you want to determine the BALANCE of an account you should refer to the