Exam 1, Chapter 1 - Practice Questions Flashcards
Equipment is found on the ___(a)___ because it is an ___(b)___ (more specifically it is a/an ___(c)___)
a. balance sheet
b. asset
c. long term asset
Fees earned are found on the ___(a)___ because they are a/an ___(b)___
a. income statement
b. revenue
Retained earnings are found on the ___(a)___ in ___(b)___ section because they are a/an ___(c)____
a. balance sheet
b. shareholders’ equity
c. asset
Wages are on the ___(a)___ because they are ___(b)___
a. income statement
b. expense
Patents are on the ___(a)___ because they are a/an ___(b)___, specifically they are a/an ___(c)___
a, balance sheet
b. asset
c. long term asset
Cost of goods sold are on the ___(a)___ because they are a/an ___(b)___, specifically they are a/an ___(c)___
a. income statement
b. expense
c. operating expense
Common stock is on the ___(a)___ because it is a/an ___(b)___, specifically it is a/an ___(c)___
a. balance sheet
b. equity
c. shareholder equity
Dividends payable are on the ___(a)___ because they are a/an ___(b)___
a. balance sheet
b. liability
Accumulated depreciation is on the ___(a)___ because it is a ___(b)___, specifically, it is a ___(c)___ because it is ___(d)___
a. balance sheet
b. asset
c. long term asset
d. contra asset account to your equipment account
Prepaid expenses are found on the ___(a)___ because they are a/an ___(b)___, specifically it is a ___(c)___
a. balance sheet
b. asset
c. current asset
Gain is on the ___(a)___ because it is a/an ___(b)___
a. income statement
b. revenue
Rent revenue is on the ___(a)___ because it is a/an ___(b)___
a. income statement
b. revenue
Supplies are on the ___(a)___ because they are a/an ___(b)___, specifically they are a/an ___(c)___
a. balance sheet
b. asset
c. current asset
Inventory is on the ___(a)___ because it is a/an ___(b)___, specifically they are a/an ___(c)___
a. balance sheet
b. asset
c. current asset
Accounts receivable are on the ___(a)___ because they are a/an ___(b)___, specifically they are a/an ___(c)___
a. balance sheet
b. asset
c. current asset
Land is on the ___(a)___ because it is a/an ___(b)___, specifically it is a/an ___(c)___
a. balance sheet
b. asset
c. long term asset
Interest payable is on the ___(a)___ because it is a/an ___(b)___, specifically it is a/an ___(c)___
a. balance sheet
b. liability
c. short term liability
Deferred revenue or unearned revenue is on the ___(a)___ because it is a/an ___(b)___, specifically this is a/an ___(c)____
a. balance sheet
b. liability
c. current liability
An account payable is on the ___(a)___ because it is a ___(b)___
a. balance sheet
b. liability
Cash is on the ___(a)___, and the ___(b)___ because it is a/an ___(a)___
a. statement of cash flows
b. balance sheet
c. asset
Accounts receivable are on the ___(a)___ because they are a/an ___(b)___
a. balance sheet
b. asset
Rent expense is on the ___(a)___ because it is a/an ___(b)___
a. income statement
b. expense
Service revenue is on the ___(a)___ because it is a/an ___(b)___
a. income statement
b. Revenue
Office supplies are on the ___(a)___ because they are a/an ___(b)___
a. balance sheet
b. asset
Dividends are on the ___(a)___ because they are ___(b)___
a. statement of retained earnings
b. equity/dividends
Salaries are on the ___(a)___ because they are a/an ___(b)___
a. income statement
b. expense
Earned revenue from video rentals on account results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. accounts receivable
c, increase equity
d. rental revenue
Received cash of $10,000 results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. cash
c. increase equity
d. common stock
Purchased office furniture on account results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. office furniture
c. increase liability
d. accounts payable
Received cash on account in the amount of $300 results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. Increased asset
b. cash
c. decrease asset
d. accounts receivable
Paid cash on account in the amount of $100 results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. decrease asset
b. cash
c. decrease liability
d. accounts payable
Rented merchandise and received $200 results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. cash
c. increase equity
d. rental revenue
Paying monthly office rent results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. decrease asset
b. cash
c. decrease equity
d. rent expense
Paying $100 cash to purchase office supplies results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. decrease asset
b. cash
c. increase asset
d. office supplies
Receiving cash from issuance of common stocks results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. cash
c. increase equity
d. common stock
Cash purchase of land for a building site results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. land
c. decrease asset
d. cash
Paying cash on accounts payable results in results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. decrease asset
b. cash
c. decrease liability
d. accounts payable
Purchasing equipment and signing a notes payable results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. equipment
c. increase liability
d. notes payable
Performing a service for a customer on account results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. accounts receivable
c. increase equity
d. service revenue
Employees worked for the week but will be paid next Tuesday results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase liability
b. salaries payable
c. decrease equity
d. salaries expense
Receiving cash from a customer on an accounts receivable results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. cash
c. decrease asset
d. accounts receivable
Borrowing money from a bank results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase asset
b. cash
c. increase liability
d. notes payable
Cash dividends paid to stockholders results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. decrease asset
b. cash
c. decrease equity
d. equity - dividends
Incurring utility expenses on account results in ___(a)___ (___(b)___) and ___(c)___ (___(d)____)
a. increase liability
b. accounts payable
c. decrease equity
d. utility expense
