ACC 101 Midterm Test Review with
Complete Solutions
What type of account is accounts recievable? - ANSWER-Asset
What type of account is Land? - ANSWER-Asset
What type of account is Rent Expense? - ANSWER-Expense
What type of account is Service Revenue? - ANSWER-Revenue
What type of account is Sales? - ANSWER-Revenue
What type of account is Accounts Payable? - ANSWER-Liability
What type of account is Utilities Expense? - ANSWER-Expense
What type of account is Unearned Revenue? - ANSWER-Liability
What type of account is Retained Earnings? - ANSWER-Stockholders' Equity
What type of account is cash? - ANSWER-asset
A net loss will result during a time period when expenses ______________ revenues. -
ANSWER-exceed
Betsy Carter owns a small dry cleaning business. During Oct., she paid for her family's
groceries and her home utility bill using her company's checking account. She records
these transactions as Misc Expenses for her business. Which accounting
assumption/principle is Betsy violating? - ANSWER-Economic Entity Assumption
Poindexter Co. pays a $500 dividend in cash. The effect on the specific items in the
basic accounting equation is a ______________ in the Retained Earnings and a
______________ in Cash. - ANSWER-decrease, decrease
The Duce Co has 5 plants nationwide that cost a total of $100 million. The current fair
value of the plants is $500 million. The plants will be recorded and reported as assets at
____________. - ANSWER-$100 million
Which is NOT a liability?
a. wages expense
, b. unearned revenue
c. notes payable
d. utilities payable - ANSWER-a. wages expense
Under accrual-basis accounting revenues are recorded when they are _____________
and expenses are recorded whrn they are __________, regardless of when cash is paid
or recieved. - ANSWER-earned, incurred
Barsuk Co began the year with the stockholders equity of $108,000. During the year,
Barsuk issued stock for $147,000, recorded expenses of $420,000, ad paid dividends of
$28,000. If Barsuk's ending stockholders equity was $290,000, what was the company's
revenue for the year? - ANSWER-$483,000
Morreale Co buys a $12,000 van on credit. This transaction will result in an
____________ in assets and an ____________ in liabilities. - ANSWER-increase,
increase
Which of the following accounts is NOT an asset?
A. equipment
b. accounts recievable
c. service revenue
d. inventory - ANSWER-service revenue
As of Dec 31, 2015, Reed Co has assets of $3,500 and stockholders equity of $1,500.
WHat are the liabilities for Reed Co as of Dec 31, 2015? - ANSWER-$2000
Wages Expense has a normal ___________ balance. - ANSWER-debit
Common stock has a normal _________ balance. - ANSWER-credit
Retained Earnings has a normal ___________ balance. - ANSWER-credit
Admission Revenue has a normal ___________ balance. - ANSWER-credit
Accounts Payable has a normal _________ balance. - ANSWER-credit
Accounts Recievable has a normal ______________ balance. - ANSWER-debit
Cash has a normal ____________ balance. - ANSWER-debit
Utilities Expense has a normal __________ balance. - ANSWER-debit
Supplies have a normal ______________ balance. - ANSWER-debit
Service Revenue has a normal ___________ balance. - ANSWER-credit
Complete Solutions
What type of account is accounts recievable? - ANSWER-Asset
What type of account is Land? - ANSWER-Asset
What type of account is Rent Expense? - ANSWER-Expense
What type of account is Service Revenue? - ANSWER-Revenue
What type of account is Sales? - ANSWER-Revenue
What type of account is Accounts Payable? - ANSWER-Liability
What type of account is Utilities Expense? - ANSWER-Expense
What type of account is Unearned Revenue? - ANSWER-Liability
What type of account is Retained Earnings? - ANSWER-Stockholders' Equity
What type of account is cash? - ANSWER-asset
A net loss will result during a time period when expenses ______________ revenues. -
ANSWER-exceed
Betsy Carter owns a small dry cleaning business. During Oct., she paid for her family's
groceries and her home utility bill using her company's checking account. She records
these transactions as Misc Expenses for her business. Which accounting
assumption/principle is Betsy violating? - ANSWER-Economic Entity Assumption
Poindexter Co. pays a $500 dividend in cash. The effect on the specific items in the
basic accounting equation is a ______________ in the Retained Earnings and a
______________ in Cash. - ANSWER-decrease, decrease
The Duce Co has 5 plants nationwide that cost a total of $100 million. The current fair
value of the plants is $500 million. The plants will be recorded and reported as assets at
____________. - ANSWER-$100 million
Which is NOT a liability?
a. wages expense
, b. unearned revenue
c. notes payable
d. utilities payable - ANSWER-a. wages expense
Under accrual-basis accounting revenues are recorded when they are _____________
and expenses are recorded whrn they are __________, regardless of when cash is paid
or recieved. - ANSWER-earned, incurred
Barsuk Co began the year with the stockholders equity of $108,000. During the year,
Barsuk issued stock for $147,000, recorded expenses of $420,000, ad paid dividends of
$28,000. If Barsuk's ending stockholders equity was $290,000, what was the company's
revenue for the year? - ANSWER-$483,000
Morreale Co buys a $12,000 van on credit. This transaction will result in an
____________ in assets and an ____________ in liabilities. - ANSWER-increase,
increase
Which of the following accounts is NOT an asset?
A. equipment
b. accounts recievable
c. service revenue
d. inventory - ANSWER-service revenue
As of Dec 31, 2015, Reed Co has assets of $3,500 and stockholders equity of $1,500.
WHat are the liabilities for Reed Co as of Dec 31, 2015? - ANSWER-$2000
Wages Expense has a normal ___________ balance. - ANSWER-debit
Common stock has a normal _________ balance. - ANSWER-credit
Retained Earnings has a normal ___________ balance. - ANSWER-credit
Admission Revenue has a normal ___________ balance. - ANSWER-credit
Accounts Payable has a normal _________ balance. - ANSWER-credit
Accounts Recievable has a normal ______________ balance. - ANSWER-debit
Cash has a normal ____________ balance. - ANSWER-debit
Utilities Expense has a normal __________ balance. - ANSWER-debit
Supplies have a normal ______________ balance. - ANSWER-debit
Service Revenue has a normal ___________ balance. - ANSWER-credit
