ACCOUNTING 204 FINAL |QUESTIONS & ANSWERS
VERIFIED SOLUTIONS 100%|GRADE A+|LATEST 2024/2025
Which of the following is an accurate definition of the term asset? - ✔✔A resource
that will be used to produce revenue
Alexis Company was started in Year 1. At the end of Year 1 the Company's had
the following accounting equation.
During Year 2, the company experienced the following accounting events.
• Paid of $500 of its note payable.
• Earned $700 of cash revenue.
• Paid $400 of cash expenses.
• Paid a $100 cash dividend.
Based on this information alone, what percent of the company's assets at the end of
Year 2 were provided by creditors? - ✔✔20%
Barnett Company paid a cash dividend. This event is - ✔✔an asset use transaction
The income statement presents - ✔✔a comparison of the benefits and the sacrifices
a company experiences from its operations
Which of the accounts is closed at the end of an accounting period? - ✔✔Expense,
dividend, revenue
, Which of the following shows how paying cash to reduce long-term liabilities will
affect a company's financial statements? - ✔✔- - NA | NA NA NA | -FA
When a company collects cash from accounts receivable, - ✔✔total assets are not
affected.
If a company recognizes $5,000 of accrued salary expense on December 31, Year
1, - ✔✔-on January 1, Year 2 there will be a zero balance in the Accrued Salaries
Expense account.
-on January 1, Year 2 there will be a $5,000 balance in the Accrued Salaries
Payable account.
-the December 31, Year 1 expense recognition will not affect the cash account.
*All of the answers are correct.
Knoll Company started Year 2 with a $500 in cash, $500 in supplies, and $1,000 in
common stock accounts. During Year 2 the company experienced the following
events.
(1) Paid $400 cash to purchase supplies.
(2) Physical count revealed $100 of supplies on hand at the end of Year 2.
Based on this information the amount of supplies expense reported on the Year 2
income statement is - ✔✔$800
On June 1 of Year 1 Doe Company paid $1,800 cash for an insurance policy that
would protect the company for one year. The company's fiscal closing date is
December 31. Based on this information alone, the amount of prepaid insurance
and insurance expense shown on the Year 2 financial statements would be -
✔✔Prepaid Insurance: zero
Insurance Expense: $750
VERIFIED SOLUTIONS 100%|GRADE A+|LATEST 2024/2025
Which of the following is an accurate definition of the term asset? - ✔✔A resource
that will be used to produce revenue
Alexis Company was started in Year 1. At the end of Year 1 the Company's had
the following accounting equation.
During Year 2, the company experienced the following accounting events.
• Paid of $500 of its note payable.
• Earned $700 of cash revenue.
• Paid $400 of cash expenses.
• Paid a $100 cash dividend.
Based on this information alone, what percent of the company's assets at the end of
Year 2 were provided by creditors? - ✔✔20%
Barnett Company paid a cash dividend. This event is - ✔✔an asset use transaction
The income statement presents - ✔✔a comparison of the benefits and the sacrifices
a company experiences from its operations
Which of the accounts is closed at the end of an accounting period? - ✔✔Expense,
dividend, revenue
, Which of the following shows how paying cash to reduce long-term liabilities will
affect a company's financial statements? - ✔✔- - NA | NA NA NA | -FA
When a company collects cash from accounts receivable, - ✔✔total assets are not
affected.
If a company recognizes $5,000 of accrued salary expense on December 31, Year
1, - ✔✔-on January 1, Year 2 there will be a zero balance in the Accrued Salaries
Expense account.
-on January 1, Year 2 there will be a $5,000 balance in the Accrued Salaries
Payable account.
-the December 31, Year 1 expense recognition will not affect the cash account.
*All of the answers are correct.
Knoll Company started Year 2 with a $500 in cash, $500 in supplies, and $1,000 in
common stock accounts. During Year 2 the company experienced the following
events.
(1) Paid $400 cash to purchase supplies.
(2) Physical count revealed $100 of supplies on hand at the end of Year 2.
Based on this information the amount of supplies expense reported on the Year 2
income statement is - ✔✔$800
On June 1 of Year 1 Doe Company paid $1,800 cash for an insurance policy that
would protect the company for one year. The company's fiscal closing date is
December 31. Based on this information alone, the amount of prepaid insurance
and insurance expense shown on the Year 2 financial statements would be -
✔✔Prepaid Insurance: zero
Insurance Expense: $750
