ACCT 201 EXAM QUESTIONS AND
ANSWERS ALL CORRECT
The company repaid a loan from the bank. The loan balance at the time of payment was
$2,000 - Answer-Cash Right
Loan Left
The firm paid Office Depot for the paper purchased earlier - Answer-Cash Right
Supplies Expense Left
The firm received a bill for September utility expense of $3,000. The bill will not be paid
until October. - Answer-Utility Expense Left
Account Payable Right
The following items were paid in cash:
-new computer
-pre-payment for October's rent expense
-September janitorial service expense - Answer-Computer Expense Left
pre-payment for October's rent expense Left
September janitorial service expense Left
Cash Right
The firm received notification that it had earned interest revenue of $125 on its bank
deposits, that wont be received until next month - Answer-Interest revenue Right
Accounts receivable Left
The bank notified the firm that interest expense of $155 was incurred on the company's
credit cards during September and was immediately payable. As of the end of
September, however, the company had not yet paid the interest expense - Answer-
interest expense Left
Interest payable Right
Because business appeared to be good, the company distributed $5,000 cash to the
owners - Answer-Cash Right
Dividends Left
The firm made a $100 payment for office supplies - Answer-Supplies Left
Cash Right
, income statement includes - Answer-1. Revenues
sales- cost of goods sold= total revenue
2. Expenses
Advertising expense+ automobile expense= total expenses
3. Net earnings before income tax= revenue- total expenses
Statement of retained earnings includes - Answer-Balance at the beginning of year
(retained earnings prior to this year)- on right side- add to net income
dividends- if any (subtract)
net income- on right side
balance at the end of the year (for common stock- left side and retained earnings- right
side)
Balance Sheet includes - Answer-1. Assets-
-cash
-accounts receivable
-inventory
-building
-total assets- add all (need to equal total liabilities and owner's equity)
2. Liabilities
-Accounts payable
-Mortgage payable
-total liabilities- add all
3. Owner's Equity
-common stock
-retained earnings
-total owner's equity- add both
-total liabilities and owner's equity- add both (need to equal total assets)
In balance sheet to calculate retained earnings - Answer-1. subtract sales from cost of
goods sold
2. add retained earnings (prior to this year)
3. subtract any other expenses
ex: advertising/automobile expenses
Performed legal services for clients. As of December 31, it is discovered that $70,000of
such services were earned but not yet recorded or collected - Answer-Legal services
Right
Accounts Receivable Left
Employee wages incurred, but not paid or recorded prior to December 31 are $1,000 -
Answer-Accounts Payable Right
Salaries Exp Left
ANSWERS ALL CORRECT
The company repaid a loan from the bank. The loan balance at the time of payment was
$2,000 - Answer-Cash Right
Loan Left
The firm paid Office Depot for the paper purchased earlier - Answer-Cash Right
Supplies Expense Left
The firm received a bill for September utility expense of $3,000. The bill will not be paid
until October. - Answer-Utility Expense Left
Account Payable Right
The following items were paid in cash:
-new computer
-pre-payment for October's rent expense
-September janitorial service expense - Answer-Computer Expense Left
pre-payment for October's rent expense Left
September janitorial service expense Left
Cash Right
The firm received notification that it had earned interest revenue of $125 on its bank
deposits, that wont be received until next month - Answer-Interest revenue Right
Accounts receivable Left
The bank notified the firm that interest expense of $155 was incurred on the company's
credit cards during September and was immediately payable. As of the end of
September, however, the company had not yet paid the interest expense - Answer-
interest expense Left
Interest payable Right
Because business appeared to be good, the company distributed $5,000 cash to the
owners - Answer-Cash Right
Dividends Left
The firm made a $100 payment for office supplies - Answer-Supplies Left
Cash Right
, income statement includes - Answer-1. Revenues
sales- cost of goods sold= total revenue
2. Expenses
Advertising expense+ automobile expense= total expenses
3. Net earnings before income tax= revenue- total expenses
Statement of retained earnings includes - Answer-Balance at the beginning of year
(retained earnings prior to this year)- on right side- add to net income
dividends- if any (subtract)
net income- on right side
balance at the end of the year (for common stock- left side and retained earnings- right
side)
Balance Sheet includes - Answer-1. Assets-
-cash
-accounts receivable
-inventory
-building
-total assets- add all (need to equal total liabilities and owner's equity)
2. Liabilities
-Accounts payable
-Mortgage payable
-total liabilities- add all
3. Owner's Equity
-common stock
-retained earnings
-total owner's equity- add both
-total liabilities and owner's equity- add both (need to equal total assets)
In balance sheet to calculate retained earnings - Answer-1. subtract sales from cost of
goods sold
2. add retained earnings (prior to this year)
3. subtract any other expenses
ex: advertising/automobile expenses
Performed legal services for clients. As of December 31, it is discovered that $70,000of
such services were earned but not yet recorded or collected - Answer-Legal services
Right
Accounts Receivable Left
Employee wages incurred, but not paid or recorded prior to December 31 are $1,000 -
Answer-Accounts Payable Right
Salaries Exp Left
