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Acct Chapter 1 Review
Acct Chapter 1 Review
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Section 1-1 & 1-2
Flashcards
29 cards
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Practice quiz
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Host live
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Questions
29
Answers
1
Assets are on which side of the Accounting Equation?
Both
Right
Left
2
Both Cash and Accounts Receivable are classified (grouped) as
liability accounts
asset accounts
owner's equity accounts
revenue accounts
3
Your company
sold services
on account
? What accounts are affected?
Assets & Liabilities
Accounts Payable (A/P) & Capital
Accounts Receivable (A/R) & Cash
Accounts Receivable (A/R) & Capital
4
Select the sentence that describes this transaction.
+Cash
and
-Accounts Receivable
Paid Cash on account.
Bought supplies on account.
Paid cash for supplies.
Received cash from a customer pays on account.
5
Accounts Receivable (A/R) is classified as.....?
an asset account
a liability account
a revenue account
an owner's equity account
6
Bought supplies on account; what happens to the
liability
account balance
?
It decreases
It stays the same
it is paid off
It increases
7
All of the following are liabilities except?
Accounts Receivable
Loan Payable
Accounts Payable
Salaries Payable
8
What accounts are affected when you make a sale to a customer on account
Accounts Payable & Capital increase
Accounts Payable & Cash increase
Accounts Receivable & Capital decrease
Accounts Receivable & Capital increase
9
Select the sentence that describes this transaction.
-Cash
and
-Accounts Payable
Wrote a check today for supplies bought on account last week.
Paid cash for supplies purchased todad.
Received check from Customer on account.
Bought supplies on account today
10
Every recorded transaction is measured in terms of local currency
Dollars & Cents
Going Concern
Realization of Revenue
Unit of Measure
11
You have equipment repaired on account, what account is increased.
Capital
Cash
Equipment
Accounts Payable
12
When the owner takes money out of the business for personal use, what accounts are affected?
Accounts Receivable (A/R) & Owner's Equity
Accounts Payable (A/P) & Owner's Equity
Cash & Owner's Equity
Cash & Assets
13
Which account in
not
affected when the company buys office equipment on account?
Accounts Payable
Office Equipment
Cash
14
Cash is classified as?
an owner's equity account
a bank account
an asset account
a liability account
15
The business writes a check for advertising, identify the accounts that are decreased ?
Cash and Capital
Accounts Payable and Capital
Accounts Payable and Cash
Prepaid Insurance and Cash
16
Accounting concept that requires keeping owner's personal finances separate from business.
Going Concern
Unit of Measure
Realization of Revenue
Business Entity
17
Which transaction would not impact the accounting records?
Owner invest $1,000 in the business
Owner withdrawals money from business for personal use.
Customer buys on account
The owner sells his personal car.
18
Accounting Equation: $65,000 = ? + $40,000; how much does the company
owe
?
$105,000
$25,000
$20,000
Not enough information
19
Recording revenue on the day of the sale is an example of the (?) accounting concept
Realization of Revenue
Unit of Measure
Business Entity
Going Concern
20
Capital is classified as?
a special account
an asset account
an owner's equity account
a liability account
21
Select the sentence that describes this transaction.
+Supplies
and
-Cash
Owner takes out supplies for personal use.
Company pays for supplies previously bought on credit
Company pays cash for advertising.
Company pays cash for supplies on the day of purchase.
22
Company buys supplies on account, which accounts are impacted?
Accounts Receivable and Supplies are increased
Accounts Payable and Supplies are increased
Cash is decreased; Supplies is increased
Owner's Equity and Supplies are increased
23
What does a withdrawal by the owner do to owner's equity?
Decreases Owner's Equity
Increases Owner's Equity
Increase the balance of the Accounting equation
Has no impact on Owner's Equity
24
The business writes a check for one year of insurance; what account is increased?
Prepaid Insurance
Cash
Accounts Payable
Expense
25
Which of the following accounts is an asset?
Prepaid Insurance
A/P Flowers and More
Mrs. Johnson, Capital
Mrs. Johnson, Drawing
26
Supplies is classified as a/an?
a liability account
a revenue account
an owner's equity account
an asset account
27
Which of the following is the Accounting Equation?
Assets + Liabilities + Owner's Equity
Revenue + Expenses = Capital
Assets = Liabilities + Owner's Equity
Capital - Liabilities = Assets
28
The Security and Exchange Commission (SEC) requires principles for accounting known as
PGA--Principles Govern Accounting
GAP--General Accounting Principles
FASB--Financial Accounting Standards Board
GAAP--Generally Accepted Accounting Principles
29
All of the following are assets except?
Accounts Payable
Cash
Prepaid Insurance
Accounts Receivable
