ACCY 201 TEST 1 QUESTIONS & ANSWERS VERIFIED 100% CORRECT, GRADED A+

A bill (or invoice) received from a vendor and supplier is an example of which of the following? - Financial statements A ledger is - a collection of the entire group of accounts maintained by a company A local fast-food outlet hired a first-year accounting student to work as its cashier (the person who collects cash from customers). The company pays the student after she works for a week. How does this transaction impact the accounting equation? - Decrease an asset, decrease owner's equity a revenue account - is increased by credits a trial balance will NOT balance if - a $100 cash dividend is debited to dividend for $1,00 and credited to cash for $100 A trial balance: - is a list of accounts with their balances at a given time account - a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item Accounting - an information and measurement system that identifies, records, and communicates information that is relevant, reliable, and comparable about an organization's business activities After the closing procedure is complete, which of the following proves the equality of debits and credits? - Post-closing trial balance Assets = - Liabilities + Equity Assets total $100,000, liabilities total $10,000, and equity totals $90,000. What is the debt ratio? - 0.10Beginning Retained Earnings totaled $12,000. During the period, stockholders invested $50,000. The ending Retained Earnings balance was $32,000. If dividends of $10,000 were paid during the period, what was the net income (or net loss) of the business? - Net income, $30,000 Cash dividends are declared and paid to the stockholders of the corporation. How does this transaction impact the accounting equation? - Decrease an asset, decrease equity chart of accounts - a list of all accounts and includes an identifying number for each account