ACCOUNTING 211 Liberty University -acct 211 questions with correct answers rated A+

acct 211The accounting equation can be restated as: Assets + Liabilities = Equity. - correct answer False From an accounting perspective, an event is a happening that affects the accounting equation but cannot be measured. - correct answer False The balance column in a ledger account is: - correct answer A column for showing the balance of the account after each entry is recorded. If a company reporting on a calendar year basis paid $18,000 cash on January 1 for one year of rent in advance (lease beginning January 1), and adjusting entries are made at the end of each month, the balance remaining in Prepaid Rent on December 1 should be $1,500. - correct answer True Permanent accounts carry their ending balances into future periods. - correct answer True Profit margin is defined as: - correct answer Net income divided by net sales Holman Company owns equipment with an original cost of $95,000 and an estimated salvage value of $5,000 that is being depreciated at $15,000 per year using the straight-line depreciation method, and only prepares adjustments at year-end. The adjusting entry needed to record annual depreciation is: - correct answer Debit Depreciation Expense, $15,000; credit Accumulated Depreciation, $15,000. Which of the following accounts is a permanent account? - correct answer Accounts payable. A company had net sales of $545,000 and cost of goods sold of $345,000. Its gross margin equals $890,000. - correct answer False FOB shipping point means that the buyer accepts ownership when the goods arrive at the buyer's place of business. - correct answer False