Term
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Definition
Unearned Revenue is an account of:
A) Liability
B) Asset
C) Revenue
D) Expense
E) None of the above |
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Term
| Statement of Retained Earnings |
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Definition
The four required financial statements do not include
A) statement of retained earnings
B) income statement
C) balance sheet
D) statement of cash flows
E) none of the above |
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Term
| the residual interest of owners |
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Definition
Stockholder's equity is:
A) the amount paid by investors for stock at the time of issuance
B) the residual interest of owners
C) corporate earnings reinvested in the corporation rather than distributed
D) amounts received by stockholders as a return on investment |
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Term
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Definition
The account title used for recording the payment of rent in advance for an office building is:
A) Prepaid rent
B) Rent Payable
C) Rent Revenue
D) Rent Expense |
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Term
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Definition
Which of the following is provided in a typical chart of accounts?
A) account balance
B) account number
C) dates of transactions
D) transaction amounts |
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Term
| Posting the accounts to the ledger |
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Definition
Which of the following is the final step in the journalizing and posting process?
A) Posting the accounts tot he ledger
B) Identifying each account affected and its type
C) Determining whether the accounting equation is in balance
D) Determining whether each account has increased or decreased |
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Term
| Cash is credited and Notes Payable is debited for $1400. |
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Definition
| A business makes a payment of $1400 on a note payable. How would you record the journal entry? |
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Term
| Expenses decrease equity so and expense account's normal balance is a debit balance. |
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Definition
Which of the following is true of expenses?
A) expenses increase equity so and expense account's normal balance is a credit balance
B) expenses decrease equity so an expense accounts normal balance is a credit balance
C) Expenses increase equity so an expense accounts normal balance is a debit balance.
D) Expenses decrease equity so and expense accounts normal balance is a debit balance. |
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