ACC101 (Ch 3-4)

Question 1

Interest payable is a(n) _____ account and has a normal _______ (dr/cr) balance.

Answer 1

liability; credit

Question 2

Salaries & Wages payable is a(n) _____ account and has a normal _______ (dr/cr) balance.

Answer 2

liability; credit

Question 3

Depreciation expense is a(n) _____ account and has a normal _______ (dr/cr) balance.

Answer 3

stockholders’ equity (expense); debit

Question 4

Accumulated depreciation is a(n) _____ account and has a normal _______ (dr/cr) balance.

Answer 4

Contra asset; credit

Question 5

Supplies is a(n) _____ account and has a normal _______ (dr/cr) balance.

Answer 5

asset; debit

Question 6

Prepaid rent is a(n) _____ account and has a normal _______ (dr/cr) balance.

Answer 6

asset; debit

Question 7

Unearned revenues is a(n) _____ account and has a normal _______ (dr/cr) balance.

Answer 7

liability; credit

Question 8

Interest payable is reported on the ________ (financial statement).

Answer 8

Balance sheet

Question 9

Salaries & wages payable is reported on the ________ (financial statement).

Answer 9

Balance sheet

Question 10

Depreciation Expense is reported on the ________ (financial statement).

Answer 10

Income Statement

Question 11

Supplies is reported on the ________ (financial statement).

Answer 11

Balance Sheet

Question 12

Depreciation Expense is reported on the ________ (financial statement).

Answer 12

Income Statement

Question 13

Accumulated Depreciation is reported on the ________ (financial statement).

Answer 13

Balance Sheet

Question 14

Prepaid Rent is reported on the ________ (financial statement).

Answer 14

Balance Sheet

Question 15

Unearned Revenues is reported on the ________ (financial statement).

Answer 15

Balance Sheet

Question 16

Adjusting JE for supplies

Answer 16

DR Supplies expense
CR Supplies

Question 17

Adjusting JE for Depreciation

Answer 17

DR Depreciation Expense
CR Accumulated Depreciation

Question 18

Adjusting JE for expired insurance

Answer 18

DR Insurance Expense
CR Prepaid Insurance

Question 19

Adjusting JE for unearned service revenue

Answer 19

DR Unearned Service Revenue
CR Service Revenue

Question 20

Adjusting JE for accrued service revenue

Answer 20

DR A/R
CR Service Revenue

Question 21

Adjusting JE for Interest incurred

Answer 21

DR Interest Expense
CR interest Payable

Question 22

Adjusting JE for payroll

Answer 22

DR Sal & Wages Expense
CR Sal & Wages Payable

Question 23

Is cash a permanent or temporary account

Answer 23

Permanent

Question 24

Is insurance expense a permanent or temporary account

Answer 24

Temporary (closed)

Question 25

Is Service Revenue a permanent or temporary account

Answer 25

Temporary (closed)

Question 26

Is A/R a permanent or temporary account

Answer 26

Permanent

Question 27

Is unearned service revenue a permanent or temporary account

Answer 27

Permanent

Question 28

Is Retained Earnings a permanent or temporary account

Answer 28

Permanent

Question 29

Is Income Summary a permanent or temporary account

Answer 29

Temporary

Question 30

J/E to close revenues

Answer 30

DR Revenues CR Income Summary

Question 31

J/E to close expenses

Answer 31

DR Income Summary CR Expense Accounts

Question 32

J/E to close Income Summary (net income)

Answer 32

DR Income Summary CR Retained Earnings (inc)

Question 33

J/E to close Income Summary (net loss)

Answer 33

DR Retained earnings (decr) CR Income Summary

Question 34

J/E to close dividends

Answer 34

DR Retained Earnings CR Dividends

Question 35

A current asset is

Answer 35

an asset that a company expects to convert to cash or use up within one year or its operating cycle, whichever is longer

Question 36

A current liability is

Answer 36

an obligation that a company expects to pay within one year or its operating cycle, whichever is longer

Question 37

Cash is recorded as what on the classified balance sheet?

Answer 37

current asset

Question 38

Debt investments are recorded as what on the classified balance sheet?

Answer 38

current assets

Question 39

A/R is recorded as what on the classified balance sheet?

Answer 39

current assets

Question 40

Inventory is recorded as what on the classified balance sheet?

Answer 40

current assets

Question 41

Supplies are recorded as what on the classified balance sheet?

Answer 41

current assets

Question 42

Long-term stock investments are recorded as what on the classified balance sheet?

Answer 42

Long-term investments

Question 43

Investments in real estate are recorded as what on the classified balance sheet?

Answer 43

Long-term investments

Question 44

Land is recorded as what on the classified balance sheet?

Answer 44

Property, plant, and equipment

Question 45

Accumulated depreciation is recorded as what on the classified balance sheet?

Answer 45

a decrease to Property, plant and equipment

Question 46

Patents are recorded as what on the classified balance sheet?

Answer 46

Intangible assets

Question 47

Accounts payable are recorded as what on the classified balance sheet?

Answer 47

Current liabilities

Question 48

Unearned service revenue is recorded as what on the classified balance sheet?

Answer 48

Current liabilities

Question 49

Salaries and wages payable are recorded as what on the classified balance sheet?

Answer 49

Current liabilities

Question 50

Interest payable is recorded as what on the classified balance sheet?

Answer 50

Current liabilities

Question 51

Mortgage payable is recorded as what on the classified balance sheet?

Answer 51

Long-term liabilities

Question 52

Notes payable, due in 5 years, are recorded as what on the classified balance sheet?

Answer 52

Long-term liabilities

Question 53

Common stock is recorded as what on the classified balance sheet?

Answer 53

Stockholders' equity

Question 54

Retained Earnings (ending) is recorded as what on the classified balance sheet?

Answer 54

Stockholders' equity