ACCT 2301 - Midterm Review Questions Answered Correctly Latest Update

ACCT 2301 - Midterm Review Questions Answered Correctly Latest Update The area of accounting aimed at servicing the decision making needs of internal users is - Answers Managerial accounting Which of the following is not true regarding a Certified Public Accountant? - Answers Cannot hold any other certificate other than a CPA Which of the following factors are part of the Fraud Triangle? - Answers Opportunity, Pressure, and Rationalization The Securities and Exchange Commission (SEC) has given the task of setting GAAP to the: - Answers FASB A partnership - Answers Has unlimited liability for its partners If a company uses $1300 of its cash to purchase supplies, the effect of the accounting equation would be: - Answers One asset increases $1300 of its cash to purchase supplies, and another asset decreases $1300, causing no effects If equity is $300,000 and liabilities are $192,000, then assets equal: - Answers $429,000 Outflows of cash and other resources to stockholders are: - Answers Dividends Assets created by selling goods and services on credit are: - Answers Accounts Receivable The basic financial statements include all of the following except: - Answers Statement of changes in assets Accounts payable appear on which of the following statements? - Answers Balance Sheet The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities. Which of the following transactions could have caused that effect? - Answers Equipment was purchased on credit Unearned revenues are generally: - Answers Liabilities created when a customer pays in advance for products or services before the revenue is earned. A company's ledger is: - Answers A record containing all accounts and their balance used by the company A debit - Answers is always the left hand side of a T-account A credit used to record an increase in all of the following accounts except - Answers Wages Expense Identify the account below that is classified as an asset in a company's chart of accounts: - Answers Accounts Receivable Which of the following is not an asset account? - Answers Services Revenue A business uses a credit to record - Answers A decrease in an asset account Gloria Catering provided $1,000 of catering services and billed its client for the amount owed. Determine the journal entry that is needed. - Answers Debit: Accounts Receivable Credit: Catering Revenue Russel Co. received a $400 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Determine the correct journal entry. - Answers Debit: Utilities Expense Credit: Accounts Payable Smart Consulting, paid cash dividends of $2,000 to its common stockholders. Determine the correct journal entry. - Answers Debit: Dividends Credit: Cash The process of transferring general journal entry information to the ledger is called - Answers Posting While in the process of posting from the journal to the ledger, a company failed to post a $500 debit to the Equipment account. What will the effect of this error? - Answers The trial balance would not balance Adjusting entries - Answers affect both the income statement and balance sheet accounts True or False? Adjusting entries affect only balance sheet accounts. - Answers False