ACCTG 201: The Accounting Information System & Accrual Accounting Concepts V1

Adjusting entries can be classified as:

If expenses are paid in cash, then

The normal balance of any account is the

Goods purchased for future use in the business, such as supplies, are called:

Adjusting entries are:

When a corporation distributes a dividend the

If services are rendered for cash, then

The periodicity assumption states that:

The receipt of cash in advance from a customer

Which accounts normally have debit balances?

If services are rendered on account, then

Which of the following items has no effect on retained earnings?

Why was Apple required to spread their iPhone revenues over a two year period?

As prepaid expenses expire with the passage of time, the correct adjusting entry will be a:

An adjusting entry can include a:

Adjustments would not be necessary if financial statements were prepared to reflect net in-come from:

Borrowing money and issuing shares of stock are

Accumulated Depreciation is a(n):

A trial balance proves

Adjusting entries affect at least:

Payments of expenses that will benefit more than one accounting period are identified as:

A company provided consulting services and billed the client $2,500. As a result of this event

The right side of an account

Posting

Which of the following accounts is increased with a debit?

A small company may be able to justify using a cash basis of accounting if they have:

Under the cash basis of accounting, an amount received from a customer in advance would be reported as a(n):

A credit is NOT a normal balance for which account listed below?

An account consists of

Debits

A revenue account

The left side of an account is

Which of the following would not be an application of the revenue recognition or expense recognition principle?

Accrued revenues are:

Which of the following describes an accrued expense?

If a company buys a $700 machine on credit, this transaction will affect the

If a resource has been consumed but a bill has not been received at the end of the accounting period, then:

If a company has overdrawn its bank balance, then

The double-entry system requires that each transaction must be recorded

Which one of the following is not a part of an account?

An asset was debited for $1,000 and a liability credited for $500. How would you complete recording the transaction?

When collection is made on Accounts Receivable,

Expenses are recognized when:

A debit to an asset account indicates a(n)

A company purchased equipment for $1,800 cash. As a result of this event,

Which accounts normally have credit balances?

A corporation paid dividends of $5,000. As a result of this event, the

A debit is not the normal balance for which account listed below?

Which statement is incorrect?

The primary purpose of the trial balance is to

A corporation received a cash advance of $500 from a customer. As a result of this event,

A credit to a liability account

Which account below is not a subdivision of stockholders’ equity?

An account is a part of the financial information system and is described by each one of the following except

All of the following are characteristics of every accounting information system except it is a system

A T-account is

The best interpretation of the word “credit” is the

The classification and normal balance of the Dividends account is

Why are expenses increased with a debit?

A trial balance will not balance if

If a company fails to adjust for accrued revenues:

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Which of the following describes the classification and normal balance of the Retained Earnings account?

The revenue recognition principle dictates that revenue should be recognized in the account-ing records:

The adjusting entry to an unearned revenue account will

If a company fails to make an adjusting entry to record supplies expense, then:

Unearned revenues are:

Unearned revenue is classified as a(n):

The purchase of an asset on credit

Accounts often need to be adjusted because:

Accrued expenses are:

An asset–expense relationship exists with:

A liability - revenue relationship exists with

Under the cash basis of accounting:

Using accrual accounting, expenses are recorded and reported only:

In its simplest form, an account consists of all of the following except

An accounting time period that is one year in length is called:

One of the accounting concepts upon which adjustments for prepayments and accruals are based is:

An investment by the stockholders in a business increases

The primary difference between prepaid and accrued expenses is that prepaid expenses have:

Each of the following is a major type (or category) of adjusting entry except:

Collection of a $600 Accounts Receivable

Receiving payment of a portion of an accounts receivable will

The Dividends account

A revenue generally

A transaction caused a $5,000 increase in both assets and total liabilities. This transaction could have been a(n)

An adjusting entry:

The Cash account has a credit balance. Which statement is true?

The primary difference between accrued revenues and unearned revenues is that accrued revenues have:

The purchase or sale of long-lived assets used in operating the business is

Which of the following statements is not true?

A paid dividend

A trial balance

A payment of a portion of an accounts payable will

A revenue account

If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck,

In a service-type business, revenue is recognized

Which of the following describes the classification and normal balance of the Unearned Rent Revenue account?

The expense recognition principle matches:

Which of the following items describe the two classifications of adjusting entries?