ACC101 Mini Exam Practice (Ch 1-2)

Question 1

Accounting Equation

Answer 1

Assets = Liabilities + Stockholder’s Equity

Question 2

4 Parts of Stockholder’s Equity

Answer 2

+Common Stock + Revenues - Expenses - Dividends

Question 3

Cash is a(n) _____ account.

Answer 3

asset

Question 4

Supplies is a(n) _____ account.

Answer 4

asset

Question 5

Accounts receivable is a(n) _____ account.

Answer 5

asset

Question 6

Equipment is a(n) _____ account.

Answer 6

asset

Question 7

Accounts payable is a(n) _____ account.

Answer 7

liability

Question 8

Common stock is a(n) _____ account.

Answer 8

stockholders’ equity

Question 9

Revenue is is a(n) _____ account.

Answer 9

stockholders’ equity

Question 10

Salaries & Wages Expense is a(n) _____ account.

Answer 10

stockholders’ equity

Question 11

Dividends is a(n) _____ account

Answer 11

stockholders’ equity

Question 12

The Income Statement records

Answer 12

Revenues - expenses = net income (loss) for a period of time

Question 13

The Retained Earnings Statement records

Answer 13

Beginning retained earnings + net income (loss) - dividends = Ending retained earnings for a period of time

Question 14

The Balance Sheet records

Answer 14

Assets, liabilities, and stockholders’ equity for a specific date. Stockholders’ equity is Common Stock and Ending Retained Earnings.

Question 15

Cash is recorded on which financial statement?

Answer 15

Balance Sheet

Question 16

Accounts Receivable is recorded on which financial statement?

Answer 16

Balance Sheet

Question 17

Supplies is recorded on which financial statement?

Answer 17

Balance Sheet

Question 18

Equipment is recorded on which financial statement?

Answer 18

Balance Sheet

Question 19

Accounts payable is recorded on which financial statement?

Answer 19

Balance Sheet

Question 20

Common Stock is recorded on which financial statement?

Answer 20

Balance Sheet

Question 21

Ending Retained Earnings is recorded on which financial statement?

Answer 21

Retained Earnings Statement AND Balance Sheet

Question 22

Service Revenue is recorded on which financial statement?

Answer 22

Income Statement

Question 23

Salaries and Wages Expense is recorded on which financial statement?

Answer 23

Income Statement

Question 24

Rent Expense is recorded on which financial statement?

Answer 24

Income Statement

Question 25

Advertising Expense is recorded on which financial statement?

Answer 25

Income Statement

Question 26

Utilities Expense is recorded on which financial statement?

Answer 26

Income Statement

Question 27

Net Income is recorded on which financial statement?

Answer 27

Income Statement AND Retained Earnings Statement

Question 28

Dividends is recorded on which financial statement?

Answer 28

Retained Earnings Statement

Question 29

Beginning Retained Earnings is recorded on which financial statement?

Answer 29

Retained Earnings Statement

Question 30

Performing services on account will have what impact on the accounting equation?

Answer 30

+ Assets (A/R) + Stockholders' Equity (Revenue)

Question 31

Receiving cash for services performed will have what impact on the accounting equation?

Answer 31

+ Assets (cash) + Stockholders' Equity (Revenue)

Question 32

Purchasing equipment on account will have what impact on the accounting equation?

Answer 32

+ Assets (equipment) + Liabilities (A/P)

Question 33

Payment of cash dividends will have what impact on the accounting equation?

Answer 33

- Assets (cash) - Stockholders' Equity (dividends)

Question 34

Paid expenses in cash will have what impact on the accounting equation?

Answer 34

- Assets (cash) - Stockholders' Equity (expenses)

Question 35

Paid cash for rent will have what impact on the accounting equation?

Answer 35

- Assets (cash) - Stockholders' Equity (expenses)

Question 36

Received cash from customers billed last month will have what impact on the accounting equation?

Answer 36

+ Assets (cash) - Assets (A/R)

Question 37

Paid cash for equipment purchased on account will have what impact on the accounting equation?

Answer 37

- Asset (cash) - Liabilities (A/P)

Question 38

Incurred advertising expense on account will have what impact on the accounting equation?

Answer 38

+ Liabilities (A/P) - Stockholders' Equity (expense)

Question 39

Borrowed cash from a bank will have what impact on the accounting equation?

Answer 39

+ Assets (cash) + Liabilities (N/P)

Question 40

Stockholders investment of cash in the business in exchange for common stock will have what impact on the accounting equation?

Answer 40

+ Assets (cash) + Stockholders' Equity (C/S)

Question 41

Cash payment of dividends will have what impact on the accounting equation?

Answer 41

- Assets (cash) - Stockholders' Equity (Dividends)

Question 42

Debits ___________ (increase/decrease) assets.

Answer 42

increase

Question 43

Debits ___________ (increase/decrease) liabilities.

Answer 43

decrease

Question 44

Debits ___________ (increase/decrease) expenses.

Answer 44

increase

Question 45

Debits ___________ (increase/decrease) dividends.

Answer 45

increase

Question 46

Credits___________ (increase/decrease) assets.

Answer 46

decrease

Question 47

Credits___________ (increase/decrease) liabilities.

Answer 47

increase

Question 48

Credits___________ (increase/decrease) common stock.

Answer 48

increase

Question 49

Credits___________ (increase/decrease) revenues.

Answer 49

increase

Question 50

The normal balance for cash is ________.

Answer 50

debit

Question 51

The normal balance for accounts payable is ________.

Answer 51

credit

Question 52

The normal balance for advertising expense is ________.

Answer 52

debit

Question 53

The normal balance for service revenue is ________.

Answer 53

credit

Question 54

The normal balance for accounts receivable is ________.

Answer 54

debit

Question 55

The normal balance for common stock is ________.

Answer 55

credit

Question 56

The normal balance for dividends is ________.

Answer 56

debit

Question 57

The normal balance for prepaid insurance is ________.

Answer 57

debit

Question 58

The normal balance for supplies is ________.

Answer 58

debit

Question 59

The normal balance for notes payable is ________.

Answer 59

credit

Question 60

The normal balance for equipment is ________.

Answer 60

debit

Question 61

The normal balance for unearned service revenue is ________.

Answer 61

credit

Question 62

To record an issue of C/S for Cash: debit __________ and credit _________.

Answer 62

debit cash credit common stock

Question 63

To record a payment of one month rent for building: debit __________ and credit _________.

Answer 63

debit rent expense credit cash

Question 64

To record an cash payment for equipment: debit __________ and credit _________.

Answer 64

debit equipment credit cash

Question 65

To record an purchase of equipment on account: debit __________ and credit _________.

Answer 65

debit equipment credit accounts payable

Question 66

To record cash payment for advertising: debit __________ and credit _________.

Answer 66

debit advertising expense credit cash

Question 67

To record a bill for equipment repair cost: debit __________ and credit _________.

Answer 67

debit maintenance and repair expense credit accounts payable

Question 68

To record providing services on account: debit __________ and credit _________.

Answer 68

debit accounts receivable credit service revenue

Question 69

To record a purchase of supplies on account: debit __________ and credit _________.

Answer 69

debit supplies credit accounts payable

Question 70

To record a payment for a customer that was billed last month: debit __________ and credit _________.

Answer 70

debit cash credit accounts receivable

Question 71

To record a payment on account: debit __________ and credit _________.

Answer 71

debit accounts payable credit cash

Question 72

To record payment of employee wages: debit __________ and credit _________.

Answer 72

debit salaries and wages expense credit cash

Question 73

credit

Answer 73

the right side of an account

Question 74

debit

Answer 74

the left side of an account

Question 75

normal balance

Answer 75

an account balance on the side where an increase in the account is recorded (Note: the side that increases)

Question 76

Posting

Answer 76

the procedure of transferring journal entries to the ledger accounts

Question 77

Trial balance

Answer 77

a list of accounts and their balances

Question 78

Journal

Answer 78

an accounting record in which transactions are initially recorded in chronological (date) order

Question 79

General Ledger

Answer 79

A ledger (book of record) that contains all asset, liability, and stockholders' equity accounts and balances

Question 80

Chart of Accounts

Answer 80

A list of accounts and the related account numbers