Busi 101

Question 1

The father of double entry bookkeeping

Answer 1

Luca Pacioli

Question 2

The group that primarily determines how accounting is practiced in the US

Answer 2

FASB

Question 3

Which statement covers a point in time?

Answer 3

Statement of Retained Earnings

Question 4

Assets and Liabilities equation

Answer 4

Assets=Liabilities + Owners equity

Question 5

A debit increases the balance of?

Answer 5

Assets and Dividends

Question 6

A credit decreases the balance of

Answer 6

Expenses and Dividends

Question 7

Which of the following is an example of a real/permanent account? Dividends, Rent Revenue, Gain on sale of land, Prepaid Insurance, Supplies Expense

Answer 7

Prepaid Insurance

Question 8

Which of the following is an example of a nominal/temporary? Accumulated Depreciation, Interest Revenue, Prepaid Rent Expense, Interest Payable, Available for Sale Securities

Answer 8

Interest Revenue

Question 9

What’s an example of a deferral?

Answer 9

Unearned Revenue, Prepaid Interest Expense

Question 10

What’s an example of an accrual?

Answer 10

Dues Payable

Question 11

The adjusting entry for the expiration of a prepaid expense involves a?

Answer 11

Expense Account and an Asset Account

Question 12

The adjusting entry for the earning of revenue received in advance involves a?

Answer 12

Debit to Liability and

Credit to Revenue

Question 13

The adjusting entry for recognition of accrued expense involves a?

Answer 13

Expense Account and

Liability Account

Question 14

The adjusting entry for recognition of accrued revenue involves a?

Answer 14

Debit to Asset and

Credit to Revenue

Question 15

Equation for Working Capital

Answer 15

Current Assets - Current Liabilities

Question 16

Current ratio formula

Answer 16

Current Assets / Current Liabilities

Question 17

In a bank reconciliation outstanding checks are

Answer 17

Subtracted from the bank balance

Question 18

In a bank reconciliation an EFT collection listed on the bank statement is…

Answer 18

Added to the book balance

Question 19

In a bank reconciliation, the difference between a check written that is erroneously recorded as less should be…

Answer 19

Added to the book balance

Question 20

Unrealized gains or losses on “available for sale” securities are reported on the…

Answer 20

Balance Sheet

Question 21

The “allowance for uncollectible accounts” is a…

Answer 21

Contra Asset and a

Permanent Account

Question 22

Under the allowance method of accounts receivable, the write off entry for an account…

Answer 22

Has no effect on total assets

Question 23

uncollectible accounts credit is an expense?

Answer 23

no

Question 24

uncollectible accounts debit is an expense?

Answer 24

yes

Question 25

The failure to record the adjusting entry for the expiration of prepaid insurance at year end would understate

Answer 25

Expenses

Question 26

The failure to record the adjusting entry for the earning of (unearned revenue) would understate

Answer 26

Liabilities

Question 27

Recording the adjusting entry for accrued interest receivable by debiting an asset and crediting a liability would understate

Answer 27

Revenue, Net Income and Owner's Equity

Question 28

Recording the adjusting entry for depreciation by debiting an expense account and crediting a liability would have no effect on

Answer 28

Owners Equity

Question 29

Recording the adjusting entry for accrued wages payable by debiting an asset and crediting a liability would overstate

Answer 29

Net Income and Assets

Question 30

Recording the adjusting entry for accrued interest payable on monies borrowed by us by debiting assets and crediting revenues would misstate

Answer 30

Total Revenue, Total Expense Total Assets Total Liabilities

Question 31

Debit assets does what

Answer 31

Increases assets

Question 32

Credit assets does what

Answer 32

Decreases assets

Question 33

Debit Liabilities and Owners equity does...

Answer 33

decreases

Question 34

Credit Liabilities and Owners equity does...

Answer 34

Increases

Question 35

Debit expenses

Answer 35

increases expenses

Question 36

credit expenses

Answer 36

decreases expenses

Question 37

debit revenues

Answer 37

decreases revenues

Question 38

credit revenues

Answer 38

increases revenues

Question 39

What are the three things that increase when credited?

Answer 39

Liabilities Owners equity Revenue

Question 40

What are the two things that decrease when debited

Answer 40

Assets and Expenses

Question 41

What is the accrual salary formula?

Answer 41

Salary expense = ending cash + difference in salary payable

Question 42

What is the accrual service revenue formula?

Answer 42

Revenue = ending cash + difference in unearned revenue

Question 43

What is the accrual Dues revenue formula?

Answer 43

Cash for dues - change on dues

Question 44

What is the cash from rent formula?

Answer 44

Rent Revenue - ending Prepaid Rent

Question 45

What is the cash paid for rent formula?

Answer 45

Rent expense - change in prepaid rent - change in rent payable

Question 46

Cash basis formula

Answer 46

Cash received - cash paid

Question 47

Accrual net income formula

Answer 47

Revenue - Expense

Question 48

Big 5

Answer 48

``` Andersen Worldwide Ernst and Young Deloitte Touche KPMG PricewaterhouseCoopers ```