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Accounting Chapter 1 Flashcards | StudBud
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Accounting Chapter 1
Accounting Chapter 1
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StudBud Administration
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Section 1-1 & 1-2
Flashcards
31 cards
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Practice quiz
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Questions
31
Answers
1
What accounts are affected when you make a sale to a customer on account
Accounts Payable & Cash increase
Accounts Payable & Capital increase
Accounts Receivable & Capital increase
Accounts Receivable & Capital decrease
2
The business writes a check for one year of insurance; what account is increased?
Prepaid Insurance
Cash
Accounts Payable
Expense
3
Bought supplies on account; what happens to the
liability
account balance
?
it is paid off
It stays the same
It decreases
It increases
4
Your company
sold services
on account
? What accounts are affected?
Assets & Liabilities
Accounts Payable (A/P) & Capital
Accounts Receivable (A/R) & Capital
Accounts Receivable (A/R) & Cash
5
You have equipment repaired on account, what account is increases.
Capital
Equipment
Accounts Payable
Cash
6
Both Cash and Accounts Receivable are classified (grouped) as
owner's equity accounts
asset accounts
liability accounts
revenue accounts
7
Assets are on which side of the Accounting Equation?
Left
Both
Right
8
Capital is classified as?
an asset account
a special account
a liability account
an owner's equity account
9
Which of the following accounts is an asset?
Mrs. Johnson, Drawing
Mrs. Johnson, Capital
A/P Flowers and More
Prepaid Insurance
10
When the owner takes money out of the business for personal use, what accounts are affected?
Accounts Receivable (A/R) & Owner's Equity
Cash & Owner's Equity
Accounts Payable (A/P) & Owner's Equity
Cash & Assets
11
Recording revenue on the day of the sale is an example of the (?) accounting concept
Going Concern
Realization of Revenue
Business Entity
Unit of Measure
12
Select the sentence that describes this transaction.
+Supplies
and
-Cash
Company pays cash for advertising.
Company pays cash for supplies on the day of purchase.
Owner takes out supplies for personal use.
Company pays for supplies previously bought on credit
13
Accounting concept that requires keeping owner's personal finances separate from business.
Business Entity
Realization of Revenue
Going Concern
Unit of Measure
14
The business writes a check for advertising, identify the accounts that are decreased ?
Prepaid Insurance and Cash
Accounts Payable and Capital
Accounts Payable and Cash
Cash and Capital
15
Company buys supplies on account, which accounts are impacted?
Accounts Payable and Supplies are increased
Accounts Receivable and Supplies are increased
Cash is decreased; Supplies is increased
Owner's Equity and Supplies are increased
16
Every recorded transaction is measured in terms of local currency
Realization of Revenue
Dollars & Cents
Unit of Measure
Going Concern
17
Cash is classified as?
an owner's equity account
a bank account
an asset account
a liability account
18
All of the following are assets except?
Cash
Accounts Receivable
Prepaid Insurance
Accounts Payable
19
Which transaction would not impact the accounting records?
The owner sells his personal car.
Owner withdrawals money from business for personal use.
Owner invest $1,000 in the business
Customer buys on account
20
Which account in
not
affected when the company buys office equipment on account?
Cash
Office Equipment
Accounts Payable
21
Accounts Receivable (A/R) is classified as.....?
an asset account
a revenue account
a liability account
an owner's equity account
22
What's the name of the financial statement that shows the financial position of the company?
Statement of Owner's Equity
Income Statement
Cash Flow Statement
Balance Sheet
23
Supplies is classified as a/an?
a revenue account
an asset account
an owner's equity account
a liability account
24
Select the sentence that describes this transaction.
+Cash
and
-Accounts Receivable
Paid Cash on account.
Paid cash for supplies.
Bought supplies on account.
Received cash from a customer pays on account.
25
Accounting Equation: $65,000 = ? + $40,000; how much does the company
owe
?
$105,000
$25,000
Not enough information
$20,000
26
All of the following are liabilities except?
Loan Payable
Salaries Payable
Accounts Receivable
Accounts Payable
27
Select the sentence that describes this transaction.
-Cash
and
-Accounts Payable
Wrote a check today for supplies bought on account last week.
Received check from Customer on account.
Bought supplies on account today
Paid cash for supplies purchased todad.
28
Which of the following is the Accounting Equation?
Revenue + Expenses = Capital
Assets + Liabilities + Owner's Equity
Capital - Liabilities = Assets
Assets = Liabilities + Owner's Equity
29
What does a withdrawal by the owner do to owner's equity?
Increase the balance of the Accounting equation
Has no impact on Owner's Equity
Increases Owner's Equity
Decreases Owner's Equity
30
What's the name of the financial statement that represents the accounting equation?
Cash Flow Statement
Income Statement
Statement of Owner's Equity
Balance Sheet
31
The Security and Exchange Commission (SEC) requires principles for accounting known as
FASB--Financial Accounting Standards Board
GAP--General Accounting Principles
GAAP--Generally Accepted Accounting Principles
PGA--Principles Govern Accounting
