Which of the following transactions increases total assets?

Provide services to customers on account

The term GAAP stands for...

Generally Accepted Accounting Principles

Which of the following transactions would result in an account receivable?

Providing services to customers on account

Financial accounting and reporting standards in the US are established primarily by the...

Financial Accounting Standards Board

Which of the following transactions causes an increase in stockholders' equity?

Provide services to customers on account

Financing cash flows include which of the following?

Repayment of long-term borrowing to the bark

Under accrual-basis accounting companies typically report expenses...

In the same period as the revenue they help to generate

The balance of retained earnings in the adjusted trial balance...

Equals the balance of retained earnings at the beginning of the period

Which of the following causes the accounting equation not to balance?

Increase assets, increase dividends

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Final Review 1

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Questions 25

Answers

1
A credit to cash will...
Decrease liabilities
Decrease assets
Increase assets
Decrease stockholders' equity
2
Which of the following accounts is not listed in a post-closing trial balance
Salaries Expense
Prepaid Rent
Accounts Payable
Retained Earnings
3
Which of the following transactions increases total assets?
Provide services to customers on account
Purchase supplies for cash
Pay dividends to current stockholders
Collect cash from customer for services provided on account
4
The amount of cash owed to the company by its customers from the sale of products or services on account is...
Retained Earnings
Service Revenue
Accounts Receivable
Accounts Payable
5
Financial Accounting provides information for...
Suppliers
Investors
Tax Regulators
Government Officials
6
Investing cash flows would include which of the following?
Payment for land
Cash sales to customers
Payment for advertising
Payment of dividends to stockholders
7
Who ultimately is responsible for properly applying GAAP?
Creditors
Auditors
Stockholders
Managers
8
Which of the following accounts normally has a debit balance?
Common Stock
Service Revenue
Accounts Payable
Supplies
9
The term GAAP stands for...
General Accounting Accountability Principles
Generally Accepted Auditing Principles
Generally Accepted Accounting Principles
General Accounting and Audit Principles
10
Which of the following represents an obligation of the company?
Dividends
Expenses
Liabilities
Assets
11
The owners' claims to resources are referred to as...
Stockholders' Equity
Assets
Liabilities
Dividends
12
A debit to Salaries Expense will...
Decrease stockholders' equity
Increase assets
Increase stockholders' equity
Decrease liabilities
13
Which of the following transactions would result in an account receivable?
Paying for supplies previously purchased an account
Receiving a loan from the bank
Providing services to customers on account
Purchasing supplies on account
14
Financial accounting and reporting standards in the US are established primarily by the...
Financial Accounting Standards Board
Securities and Exchange Commission
Congressional Oversight Board
International Accounting Standards Board
15
Which of the following transactions causes an increase in stockholders' equity?
Provide services to customers on account
Pay dividends to stockholders
Purchase advertising on a local radio station
Obtain cash by borrowing from a local bank
16
Financing cash flows include which of the following?
Payment of salaries to employees
Sale of services to customers for cash
Purchase of equipment for cash for company operations
Repayment of long-term borrowing to the bark
17
Under accrual-basis accounting companies typically report expenses...
In the same period in which cash is paid
In the same period in which a liability is paid
In the same period as the revenue they help to generate
In the same period in which an asset is purchased
18
Which of the following best describes financial accounting?
Information measurement
Behavioral psychology
Artistic presentation
Mathematical procedure
19
Which of the following describes the cost of selling to customers?
Assets
Liabilities
Expenses
Dividends
20
The balance of retained earnings in the adjusted trial balance...
Is the amount shown on the balance sheet
Equals the balance of retained earnings after closing entries
Is not shown
Equals the balance of retained earnings at the beginning of the period
21
Which of the following causes the accounting equation not to balance?
Increase assets, increase liabilities
Decrease assets, increase expenses
Decrease liabilities, increase revenues
Increase assets, increase dividends
22
Which financial statement shows that a company's resources equal claims to those resources?
Income statement
Balance Sheet
Statement of Stockholders' Equity
Statement of Cash Flows
23
Which step in measuring external transactions involves assessing the equality of total debits and total credits?
Post the transaction to the T-account in the general ledger
Prepare a trial balance
Analyze the impact of the transaction on the accounting equation
Use source documents to determine accounts affected by the transactions
24
Operating cash flow include which of the following?
Cash paid for supplies
Cash received from the insuance of common stock
Cash received from the sale of a used company truck
Cash received from a bank loan
25
In response to widespread fraudulent reporting in the late 90s and early 2000s, Congress...
Established the Financial Accounting Standards Board
Organized the Internal Revenue Service
Enacted the Securities and Exchange Commission
Passed the Sarbanes-Oxley Act

Final Review 1 Flashcards | StudBud