AAMI Accounting 1 Final Review (Bus 311) Latest Update Already Passed

AAMI Accounting 1 Final Review (Bus 311) Latest Update Already Passed Account receivables are: Assets Cash is considered to be: Asset Which of the following is an example of a liability: Accounts Payable True or False - The expanded accounting equation is: Assets = Liabilities + Owner's Equity False Gross profit minus expenses equals: Net Profit Which of the following is not factored into computing Owner's Equity in the expanded Accounting equation: Owner's Equity = [Capital In - Withdrawals] + [Revenue - Expenses] Revenue after deducting costs of goods sold is called: Gross Profit John Smith gives his business $10,000.00 from his own personal funds. Which of the following accounts does this transaction affect? Capital True or False - The basic accounting equation is: Assets = Liabilities + Owner's Equity True A firm has $15,000.00 in liabilities and $22,500.00 in assets. In order to compute the Basic Accounting Equation, what must Owner's Equity be? $7,500 Another name for ownership is: Equity John Smith takes $5,000.00 back from his business to repay himself some of the money he loaned to his business. Which account would be affected: Withdrawals The costs of doing business are termed: Liabilities True or False - Net Loss is defined as the amount remaining when revenue exceeds expenses. False, that is net profit True or False - Expenses increase owner's equity. False Which account below should NOT have a credit balance? Expenses From the following select the group whose accounts should have a Credit balance associated with them: liabilities, revenue and capital True or False - The abbreviation for debit is DT. False The Revenue Account should have a _______ account balance. Credit The term given to recording an entry when one debit and one credit are affected is called: Double entry This statement proves the equality of debits to credits: Trial Balance Which of the following is an account payable: Mortgage Payable Assets = Liabilities + Owner's Equity is: Basic Accounting Equation This account should have a Debit balance associated with it: Expenses An account balance is: the difference between an