Accounting 2401 Final Exam Study Guide 2023

Accounting 2401 Final Exam Study Guide 2023 A profit making business operating as a separate legal entity and in which ownership is divided into shares of stock is known as: A CORPORATION The resources owned by a business are called: ASSETS A listing of a business entity’s assets, liabilities, and stockholder’s equity as of a specific date is a : BALANCE SHEET If total assets increased $20,000 during a period and total liabilities increased $12,000 during the same period, the amount and direction (increase or decrease) of the change in owner’s equity for that period is a $8,000 INCREASE If revenue was $45,000, expenses were $37,500 and dividends were $10,000, the amount of net income or net loss would be: $7,500 NET INCOME (dividends don’t affect total income!) A debit may signify a INCREASE IN AN ASSET ACCOUNT The type of account with a normal credit balance are : LIABILITES, REVENUES, CAPITAL STOCK A debit balance in which of the following accounts would indicate an error: FEES EARNED/REVENUE The receipt of cash from customers in payment of accounts would be recorded as: DR: Cash, CR: Accounts Receivable The form listing the titles and balances of the accounts in the ledger on a given date is the TRIAL BALANCE Which of the following items represents a deferral: PREPAID INSURANCE If the supplies account, before adjustment on May 31, indicated a balance of $2,250 and supplies on hand at May 31 totaled $950, the adjusting entry would be : DR: Supplies Expense (1,300) and CR: Supplies (1,300) The balance in the unearned rent account for Jones Co. as of Dec 31 is $1,200. If Jones Co. failed to recorded the adjusting entry for $600 of rent earned during December, the effect on the balance sheet and income statement for December would be: Liabilities overstated $500, net income understated $600 If the estimated amount of depreciation on equipment for a period is $2000, the adjusting entry to record depreciation is : DR: Depreciation Expense (2000) CR: Accumulated Depreciation (2000) If the equipment account has a balance of $22,500 and its accumulated depreciation account has a balance of $14,000 the book value of equipment would be 8,500 Which of the following accounts in the Adjusted Trial Balance columns of the end-of-period spreadsheet would be extended to the Balance Sheet Colum? DIVIDENDS