Financial Accounting 2300 Exam 1 (TTU) with all
Correct & 100% Verified Answers |Actual Complete
Exam |Already Graded A+
When services are performed on account ✔Correct Answer-accounts receivable is increased
Which of the following is a CORRECT statement about the two bases of accounting? ✔Correct
Answer-GAAP requires accrual accounting.
Which financial statement answers the following question: What is the company's financial position
at fiscal year end? ✔Correct Answer-balance sheet
When preparing the financial statements, why is the income statement prepared first? ✔Correct
Answer-Net income or net loss from the income statement is used for the statement of retained
earnings. The income statement is the most important statement to investors and creditors.
The normal balance of a revenue account is a ________ because revenues increase ________
✔Correct Answer-credit; retained earnings
Accounting: ✔Correct Answer-Answers:
is often called the language of business
measures business activities
processes data into reports and communicates the data to decision makers.
All of the above
An important rule of debits and credits is: ✔Correct Answer-credits increase revenue accounts.
Which financial statement answers the following question: How well did the company perform
during the year? ✔Correct Answer-income statement
Under accrual accounting, revenue is recorded: ✔Correct Answer-when the services are
performed, regardless of when the cash is received
Which of the following is a TRUE statement regarding expenses? ✔Correct Answer-The expense
recognition principle recognizes expenses in the same period in which the related revenues are
earned.
On a classified balance sheet: ✔Correct Answer-Notes Payable due in one year is a current liability.
The trial balance is used to determine if: ✔Correct Answer-total debits of all the accounts equal
total credits of all the accounts.
All of the following are expenses EXCEPT for: ✔Correct Answer-Dividends.
, A doctor performed surgery in March and did not receive cash from the patient until July. Under
accrual accounting, the doctor recognizes revenue: ✔Correct Answer-in March.
Information must be sufficiently transparent so that it makes sense to reasonably informed users of
the financial statements, such as creditors. This qualitative characteristic of information is called:
✔Correct Answer-understandability
The revenue principle deals with the following: ✔Correct Answer-when to record revenue and the
amount of revenue to record.
The accounting equation can be stated as: ✔Correct Answer-Assets -Liabilities = Stockholders'
Equity
A trial balance has which of the following features? ✔Correct Answer-totals for all accounts listed
in the ledger
Which of the following transactions will increase one asset and decrease another asset? ✔Correct
Answer-the purchase of equipment for cash
Entries are listed in the journal: ✔Correct Answer-chronologically
All of the following accounts would be considered assets EXCEPT for: ✔Correct Answer-Retained
Earnings
An investor, wishing to assess the reasons for a change in retained earnings over a period of a year,
would probably examine the: ✔Correct Answer-statement of retained earnings.
A chart of accounts: ✔Correct Answer-lists all of an organization's accounts and account numbers.
Liabilities are: ✔Correct Answer-debts payable to outsiders called creditors.
What is the last step in the journalizing process? ✔Correct Answer-Record the transaction in the
journal.
The two types of accounting are: ✔Correct Answer-financial and managerial.
Which of the following statements, regarding the rules of debits and credits, is CORRECT?
✔Correct Answer-Revenue is increased by a credit
The beginning retained earnings balance is found on the: ✔Correct Answer-statement of retained
earnings
The balance sheet reports: ✔Correct Answer-assets, liabilities and stockholders' equity.
When a business purchases land with a note payable: ✔Correct Answer-both assets and liabilities
are increased
The CORRECT data flow from one financial statement to the next is: ✔Correct Answer-income
statement, statement of retained earnings, balance sheet, statement of cash flows.
Correct & 100% Verified Answers |Actual Complete
Exam |Already Graded A+
When services are performed on account ✔Correct Answer-accounts receivable is increased
Which of the following is a CORRECT statement about the two bases of accounting? ✔Correct
Answer-GAAP requires accrual accounting.
Which financial statement answers the following question: What is the company's financial position
at fiscal year end? ✔Correct Answer-balance sheet
When preparing the financial statements, why is the income statement prepared first? ✔Correct
Answer-Net income or net loss from the income statement is used for the statement of retained
earnings. The income statement is the most important statement to investors and creditors.
The normal balance of a revenue account is a ________ because revenues increase ________
✔Correct Answer-credit; retained earnings
Accounting: ✔Correct Answer-Answers:
is often called the language of business
measures business activities
processes data into reports and communicates the data to decision makers.
All of the above
An important rule of debits and credits is: ✔Correct Answer-credits increase revenue accounts.
Which financial statement answers the following question: How well did the company perform
during the year? ✔Correct Answer-income statement
Under accrual accounting, revenue is recorded: ✔Correct Answer-when the services are
performed, regardless of when the cash is received
Which of the following is a TRUE statement regarding expenses? ✔Correct Answer-The expense
recognition principle recognizes expenses in the same period in which the related revenues are
earned.
On a classified balance sheet: ✔Correct Answer-Notes Payable due in one year is a current liability.
The trial balance is used to determine if: ✔Correct Answer-total debits of all the accounts equal
total credits of all the accounts.
All of the following are expenses EXCEPT for: ✔Correct Answer-Dividends.
, A doctor performed surgery in March and did not receive cash from the patient until July. Under
accrual accounting, the doctor recognizes revenue: ✔Correct Answer-in March.
Information must be sufficiently transparent so that it makes sense to reasonably informed users of
the financial statements, such as creditors. This qualitative characteristic of information is called:
✔Correct Answer-understandability
The revenue principle deals with the following: ✔Correct Answer-when to record revenue and the
amount of revenue to record.
The accounting equation can be stated as: ✔Correct Answer-Assets -Liabilities = Stockholders'
Equity
A trial balance has which of the following features? ✔Correct Answer-totals for all accounts listed
in the ledger
Which of the following transactions will increase one asset and decrease another asset? ✔Correct
Answer-the purchase of equipment for cash
Entries are listed in the journal: ✔Correct Answer-chronologically
All of the following accounts would be considered assets EXCEPT for: ✔Correct Answer-Retained
Earnings
An investor, wishing to assess the reasons for a change in retained earnings over a period of a year,
would probably examine the: ✔Correct Answer-statement of retained earnings.
A chart of accounts: ✔Correct Answer-lists all of an organization's accounts and account numbers.
Liabilities are: ✔Correct Answer-debts payable to outsiders called creditors.
What is the last step in the journalizing process? ✔Correct Answer-Record the transaction in the
journal.
The two types of accounting are: ✔Correct Answer-financial and managerial.
Which of the following statements, regarding the rules of debits and credits, is CORRECT?
✔Correct Answer-Revenue is increased by a credit
The beginning retained earnings balance is found on the: ✔Correct Answer-statement of retained
earnings
The balance sheet reports: ✔Correct Answer-assets, liabilities and stockholders' equity.
When a business purchases land with a note payable: ✔Correct Answer-both assets and liabilities
are increased
The CORRECT data flow from one financial statement to the next is: ✔Correct Answer-income
statement, statement of retained earnings, balance sheet, statement of cash flows.
