Accounting 110 Exam 1 2025
Questions and Answers
When a business receives an invoice for services that have been received it creates... -
ANSWER✔️✔️-accounts payable
example of a liability account - ANSWER✔️✔️-accounts payable
Accounting equation - ANSWER✔️✔️-Assets = Liabilities + Owner's Equity
When a liability is paid, what is true? - ANSWER✔️✔️-Total assets and total liabilities decrease
Example of an asset account - ANSWER✔️✔️-building
The financial statement which contains assets and liabilities is the - ANSWER✔️✔️-balance sheet
The financial statement which contains revenues and expenses is the - ANSWER✔️✔️-income
statement
When cash is received from a customer for services provided today the following occurs -
ANSWER✔️✔️-cash increases, revenue increases
When cash is paid to the utility company for last months previously recorded invoice -
ANSWER✔️✔️-cash decreases, accounts payable decreases
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, What is the journal entry to record the payment to a vendor on account for last month's previously
recorded utility bill? - 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? - ANSWER✔️✔️-cash
accounts receivable
The journal entry to record the advance payment for a two-year insurance policy is -
ANSWER✔️✔️-prepaid insurance
cash
the journal entry to record the performance of services on account is - ANSWER✔️✔️-accounts
receivable
revenue
The journal entry to record the performance of services with payment received at time of service -
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 - ANSWER✔️✔️-Equipment expense------------------4500
cash----------------------------------500
notes payable----------------------4000
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
Questions and Answers
When a business receives an invoice for services that have been received it creates... -
ANSWER✔️✔️-accounts payable
example of a liability account - ANSWER✔️✔️-accounts payable
Accounting equation - ANSWER✔️✔️-Assets = Liabilities + Owner's Equity
When a liability is paid, what is true? - ANSWER✔️✔️-Total assets and total liabilities decrease
Example of an asset account - ANSWER✔️✔️-building
The financial statement which contains assets and liabilities is the - ANSWER✔️✔️-balance sheet
The financial statement which contains revenues and expenses is the - ANSWER✔️✔️-income
statement
When cash is received from a customer for services provided today the following occurs -
ANSWER✔️✔️-cash increases, revenue increases
When cash is paid to the utility company for last months previously recorded invoice -
ANSWER✔️✔️-cash decreases, accounts payable decreases
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, What is the journal entry to record the payment to a vendor on account for last month's previously
recorded utility bill? - 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? - ANSWER✔️✔️-cash
accounts receivable
The journal entry to record the advance payment for a two-year insurance policy is -
ANSWER✔️✔️-prepaid insurance
cash
the journal entry to record the performance of services on account is - ANSWER✔️✔️-accounts
receivable
revenue
The journal entry to record the performance of services with payment received at time of service -
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 - ANSWER✔️✔️-Equipment expense------------------4500
cash----------------------------------500
notes payable----------------------4000
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
