Accounting 110 exam 1 UPDATED Exam
Questions and CORRECT Answers
When a business receives an invoice for services that have been received it creates... -
CORRECT ANSWER - accounts payable
example of a liability account - CORRECT ANSWER - accounts payable
Accounting equation - CORRECT ANSWER - Assets = Liabilities + Owner's Equity
When a liability is paid, what is true? - CORRECT ANSWER - Total assets and total
liabilities decrease
Example of an asset account - CORRECT ANSWER - building
The financial statement which contains assets and liabilities is the - CORRECT
ANSWER - balance sheet
The financial statement which contains revenues and expenses is the - CORRECT
ANSWER - income statement
When cash is received from a customer for services provided today the following occurs -
CORRECT ANSWER - cash increases, revenue increases
When cash is paid to the utility company for last months previously recorded invoice -
CORRECT ANSWER - cash decreases, accounts payable decreases
What is the journal entry to record the payment to a vendor on account for last month's
previously recorded utility bill? - CORRECT ANSWER - Accounts payable
cash
, What is the journal entry to record the receipt of payment from a customer on account for last
month's previously recorded invoice? - CORRECT ANSWER - cash
accounts receivable
The journal entry to record the advance payment for a two-year insurance policy is - CORRECT
ANSWER - prepaid insurance
cash
the journal entry to record the performance of services on account is - CORRECT
ANSWER - accounts receivable
revenue
The journal entry to record the performance of services with payment received at time of service
- CORRECT ANSWER - cash
fees earned
The journal entry to record the purchase of equipment, $4500, with $500 down payment and then
remainder to be paid next month - CORRECT ANSWER - Equipment expense--------------
----4500
cash----------------------------------500
notes payable----------------------4000
the journal entry to record the payment of three months rent in advance - CORRECT
ANSWER - Prepaid rent
cash
The process of rewriting the information from the journal into the ledger is called - CORRECT
ANSWER - posting
Questions and CORRECT Answers
When a business receives an invoice for services that have been received it creates... -
CORRECT ANSWER - accounts payable
example of a liability account - CORRECT ANSWER - accounts payable
Accounting equation - CORRECT ANSWER - Assets = Liabilities + Owner's Equity
When a liability is paid, what is true? - CORRECT ANSWER - Total assets and total
liabilities decrease
Example of an asset account - CORRECT ANSWER - building
The financial statement which contains assets and liabilities is the - CORRECT
ANSWER - balance sheet
The financial statement which contains revenues and expenses is the - CORRECT
ANSWER - income statement
When cash is received from a customer for services provided today the following occurs -
CORRECT ANSWER - cash increases, revenue increases
When cash is paid to the utility company for last months previously recorded invoice -
CORRECT ANSWER - cash decreases, accounts payable decreases
What is the journal entry to record the payment to a vendor on account for last month's
previously recorded utility bill? - CORRECT ANSWER - Accounts payable
cash
, What is the journal entry to record the receipt of payment from a customer on account for last
month's previously recorded invoice? - CORRECT ANSWER - cash
accounts receivable
The journal entry to record the advance payment for a two-year insurance policy is - CORRECT
ANSWER - prepaid insurance
cash
the journal entry to record the performance of services on account is - CORRECT
ANSWER - accounts receivable
revenue
The journal entry to record the performance of services with payment received at time of service
- CORRECT ANSWER - cash
fees earned
The journal entry to record the purchase of equipment, $4500, with $500 down payment and then
remainder to be paid next month - CORRECT ANSWER - Equipment expense--------------
----4500
cash----------------------------------500
notes payable----------------------4000
the journal entry to record the payment of three months rent in advance - CORRECT
ANSWER - Prepaid rent
cash
The process of rewriting the information from the journal into the ledger is called - CORRECT
ANSWER - posting
