ACC 101 Exam questions and
answers A+
Owner's Equity is increased by - ANS✅✅revenues
Revenues and expenses are reported on the - ANS✅✅income statement
Net income results when - ANS✅✅revenues exceed expenses
Collection of a $500 Accounts Receivable - ANS✅✅increases an asset $500; decreases an asset
$500
The investment of cash by the owner - ANS✅✅increases owner's equity
Which of the following financial statements is prepared as of a specific date? - ANS✅✅balance
sheet
The ending owner's equity amount is shown on the - ANS✅✅both the balance sheet and the
owner's equity statement
A business organized as a separate legal entity under state law having ownership divided into shares
of stock is a - ANS✅✅corporation
Public accounting involves all of the following activities except - ANS✅✅budgeting
Which of the following events cannot be quantified into dollars and cents and recorded as an
accounting transaction? - ANS✅✅the appointment of a new CPA firm to perform an audit
A small neighborhood barber shop that is operated by its owner would likely be organized as a -
ANS✅✅proprietorship
Internal users of accounting information include all of the following except - ANS✅✅investors
, If services are rendered on account, then - ANS✅✅owner's equity will increase
The proprietorship form of business organization - ANS✅✅represents the largest number of
businesses in the United States
The ACE Company has five plants nationwide that cost $200 million. The current market value of the
plants is $500 million. The plants will be recorded and reported as assets at - ANS✅✅$200 million
Dollar signs are usually used only in the - ANS✅✅financial statements and trial balance
The Unearned Revenue account is a(n) - ANS✅✅liability
The first step in the recording process is to - ANS✅✅analyze each transaction
Which of the following statements is false? - ANS✅✅revenues are increased by debits
The primary purpose of a trial balance is to - ANS✅✅prove the mathematical equality of debits
and credits after posting
Entering transaction data in the journal is known as - ANS✅✅journalizing
A debit is not the normal balance for which of the following? - ANS✅✅liability account
A complete journal entry includes all of the following except - ANS✅✅the balance of the accounts
in the entry
A credit to a liability account indicates - ANS✅✅an increase in the liability
Posting of journal entries should be done in - ANS✅✅chronological order
A credit to a revenue account - ANS✅✅indicates an increase in revenues earned
answers A+
Owner's Equity is increased by - ANS✅✅revenues
Revenues and expenses are reported on the - ANS✅✅income statement
Net income results when - ANS✅✅revenues exceed expenses
Collection of a $500 Accounts Receivable - ANS✅✅increases an asset $500; decreases an asset
$500
The investment of cash by the owner - ANS✅✅increases owner's equity
Which of the following financial statements is prepared as of a specific date? - ANS✅✅balance
sheet
The ending owner's equity amount is shown on the - ANS✅✅both the balance sheet and the
owner's equity statement
A business organized as a separate legal entity under state law having ownership divided into shares
of stock is a - ANS✅✅corporation
Public accounting involves all of the following activities except - ANS✅✅budgeting
Which of the following events cannot be quantified into dollars and cents and recorded as an
accounting transaction? - ANS✅✅the appointment of a new CPA firm to perform an audit
A small neighborhood barber shop that is operated by its owner would likely be organized as a -
ANS✅✅proprietorship
Internal users of accounting information include all of the following except - ANS✅✅investors
, If services are rendered on account, then - ANS✅✅owner's equity will increase
The proprietorship form of business organization - ANS✅✅represents the largest number of
businesses in the United States
The ACE Company has five plants nationwide that cost $200 million. The current market value of the
plants is $500 million. The plants will be recorded and reported as assets at - ANS✅✅$200 million
Dollar signs are usually used only in the - ANS✅✅financial statements and trial balance
The Unearned Revenue account is a(n) - ANS✅✅liability
The first step in the recording process is to - ANS✅✅analyze each transaction
Which of the following statements is false? - ANS✅✅revenues are increased by debits
The primary purpose of a trial balance is to - ANS✅✅prove the mathematical equality of debits
and credits after posting
Entering transaction data in the journal is known as - ANS✅✅journalizing
A debit is not the normal balance for which of the following? - ANS✅✅liability account
A complete journal entry includes all of the following except - ANS✅✅the balance of the accounts
in the entry
A credit to a liability account indicates - ANS✅✅an increase in the liability
Posting of journal entries should be done in - ANS✅✅chronological order
A credit to a revenue account - ANS✅✅indicates an increase in revenues earned
