Accounting Exam 1 with Answers graded A+ 100% verified

____________ ______________represents the amount that owners originally paid into the company to become owners. - capital stock ______________ _______________ ______________is an amount that approximates the cash that is expected to be received when the receivable is collected. - net realizable value ________________ ________________are needed to make certain that appropriate amounts of revenue and expense are reported in the company's income statement. - adjusting entries A balance sheet lists Multiple select question. a. cash flow from financing activities. b. owners' equity. c. liabilities. d. cash flow from investing activities. e. assets. - b,c,e A business succeeds or fails based on its ability to earn_________in excess of its___________. - revenue, expenses A cash expenditure that benefits more than one period represents the Multiple choice question. a. accrual of an expense. b. accrual of revenue. c. deferral of revenue. d. deferral of an expense. - d A company made an error by recording too much revenue. To correct this error, the Revenue account should be______________. - debited A company makes adjusting entries monthly, at which time it records accrued, but unrecorded and uncollected, revenue for services it has provided to its clients. On December 31 of the current year, it recorded an adjusting entry for unrecorded and uncollected revenue amounting to $90,000. This adjustment Multiple select question. a. increased owners' equity by $90,000 b. increased assets by $90,000. c. decreased liabilities by $90,000. d. increased Cash by $90,000. - a,b A company makes adjusting entries monthly, at which time it records accrued, but unrecorded and uncollected, revenue for services it has provided to its clients. On June 30 of the current year, it recorded an adjusting entry for unrecorded and uncollected revenue amounting to $60,000. This adjustment requires a Multiple select question. a. credit to Revenue of $60,000. b. debit to Cash of $60,000. c. credit to Unearned Revenue of $60,000. d. debit to Accounts Receivable of $60,000. - a,c A company purchased a $30,000 piece of equipment by paying $10,000 cash and issuing a note payable for the unpaid balance. This transaction required a: Multiple select question. a. debit to Equipment of $30,000 b. credit to Notes Payable of $20,000 c. debit to Notes Payable of $20,000 d. credit to Cash of $10,000 - a,b,d A company purchased a 9-month insurance policy on May 1 for $36,000. If the company makes adjusting entries monthly, its Unexpired Insurance balance at September 30 (after the adjustment) is________________. - $16,000 A company purchased land for $50,000 by paying $20,000 cash, and by issuing a note payable for the remainder of the amount owed. It recorded this transaction by___________________land for $50,000,________________cash for $20,000 and __________________ notes payable for________________. - debiting, crediting, crediting, 30,000 A company rents its office building. On February 1, it paid $36,000 for a one-year lease on this particular office space. Adjusting entries are prepared monthly. The balance in the Prepaid Rent account on December 31 after adjusting entry is made is____________. - $3,000