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ACCT 110 Exam 1 Review Flashcards | StudBud
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ACCT 110 Exam 1 Review
ACCT 110 Exam 1 Review
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1
Credit terms 3/10, n/30 means...
A 3% discount can be applied if the invoice is paid within 10 days
A 10% discount can be applied if the invoice is paid within 3 days
You must pay within 3 days of the sale
You must pay within 10 days of the sale
2
Assets are $10,000, Liabilities are $5,000, and Common Stock is $2,000. How much is Retained Earnings?
$5,000
$10,000
$2,000
$3,000
3
Dividends are classified as an expense.
True
False
4
Which of the following does NOT belong on the Balance Sheet?
Expenses
Liabilities
Stockholder's Equity
Assets
5
Which transaction would leave Total Assets unaffected?
Purchased land on account
Paid cash dividends
Paid cash to purchase land
Paid cash to pay off salaries payable
6
Revenue amounted to $3,500. Expenses were $1,500. Dividends paid amounted to $500. What is the amount of net income?
$1,500
$1,000
$3,000
$2,000
7
Unearned Revenue is classified as a(n)
Liability
Expense
Revenue
Asset
8
Which of the following would NOT be considered a merchandising business?
Walmart
Kohls
WKU Tax Services
Target
9
Creditors lend financial resources to a business with the expectation of repayment with interest.
True
False
10
How would prepaid insurance be classified?
Equity
Expense
Liability
Asset
11
Ross issued 10,000 shares of no-par stock for $30 per share. Ross was authorized to issue 15,000 shares. Assets will:
Increase by $300,000
Decrease by $450,000
Decrease by $300,000
Increase by $450,000
12
Sales revenue minus cost of goods sold equals
Retained Earnings
Net Income
Gross margin
Inventory purchases
13
Paying cash to employees for salaries and wages earned is what type of activity?
Operating activity
Noncash activity
Investing activity
Financing activity
14
Revenue was $40,000. Expenses were $10,000. Dividends were $5,000. What is Net Income?
$15,000
$30,000
$25,000
$35,000
15
Bergner Co. reported assets of $2,000 and stockholders' equity of $800. What amount will Bergner report for liabilities?
Not enough information
$2,800
$2,000
$1,200
16
_________ describes a distribution of the business's assets back to the owners of the business.
Dividend
Expense
Common Stock
Liability
17
_____________ designates the maximum number of shares of stock that a corporation may issue.
Number of shares authorized
Number of shares outstanding
Number of shares issued
Par value
18
Which of the following is NOT on the Income Statement?
Revenue
Dividends
Net Income
Expenses
19
A resource that will be used to produce revenue is a(n)
Dividend
Liability
Expense
Asset
20
Partnerships are established as a legal entity separate from its owners.
False
True
21
The purchase of land with cash is what type of activity?
Operating activity
Noncash activity
Investing activity
Financing activity
22
Kile provided accounting services for $10,000 cash. What is the impact of this transaction?
Increase assets and increase liabilities
None of the above
Decrease assets and decrease stockholders' equity
Increase assets and increase stockholders' equity
23
Adjusting entries can be classified as
Accurals and advances
Advances and postponements
Deferrals and postponements
Accurals and deferrals
24
Retained earnings at the end of the year was $50,000. Revenues were $100,000 and Dividends were $10,000. Expenses were:
$40,000
Not enough information to determine.
$50,000
$90,000
25
Taking out a loan is an example of what type of activity?
Operating activity
Investing activity
Delivering activity
Financing activity
26
Purchasing supplies on account causes a(n)...
Increase in Liabilities
Decrease in Assets
Increase in Retained Earnings
Increase in Expenses
27
The Cost of Goods Sold account is classified as a(n):
Liability
Asset
Contra asset
Expense
28
Which account does NOT belong in Retained Earnings?
Dividends
Liabilities
Revenues
Expenses
29
Managerial accounting is intended to satisfy the needs of external users of accounting information.
False
True
30
Corporations would have a paid-in capital in excess of par value account in the equity section on their balance sheet.
True
False
