ACC 290 Week 1 Apply: Connect® Exercise For more course tutorials visit
www.tutorialrank.com ACC 290 Week 1 Apply: Connect® Exercise
Review the Knowledge Check in preparation for this assignment.
Complete the Week 1 Exercise in Connect®.
Note: You have only one attempt available to complete this assignment.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the
Multiple Choice
corporation.
sole proprietorship.
nonprofit organization.
partnership.
When the owner invests equipment in a business,
Multiple Choice assets increase and owner’s equity decreases. assets and owner’s equity increase.
assets and revenue increase. liabilities decrease and owner’s equity increases. The Statement of Owner’s Equity is calculated as follows:
Multiple Choice
beginning capital + net income + withdrawals + additional investments = ending capital
beginning capital + net loss − withdrawals + additional investments = ending capital beginning capital + net income − withdrawals + additional investments = ending capital
beginning capital + net loss + withdrawals + additional investments = ending capital
The Financial Accounting Standards Board is responsible for
Multiple Choice
auditing financial statements.
developing generally accepted accounting principles.
establishing accounting systems for businesses.
making recommendations to the Securities and Exchange Commission.
The Balance Sheet heading includes each of the following except:
Multiple Choice
firm’s name.
title of the report.
date of the report. firm’s address.
Tax planning includes
Multiple Choice
auditing tax returns.
correcting tax returns.
preparing tax returns.
suggesting actions to reduce tax liability.
Which of the following equations is the Fundamental Accounting Equation?
Multiple Choice
Assets – Liabilities = Owner’s Equity Assets – Owner’s Equity = Liabilities Assets + Liabilities = Owner’s Equity Assets = Liabilities + Owner’s Equity
Tax accounting involves tax compliance and
Multiple Choice
tax configuration.
tax planning.
tax obfuscation.
tax evaluation.
Amounts that a business must pay in the future are known as:
Multiple Choice
capital.
liabilities.
assets.
expenses.
Identify the form of business that is considered a separate legal entity.
Multiple Choice
a limited liability partnership
a sole proprietorship
a partnership
a corporation
Which of the following is NOT a service of public accounting firms?
Multiple Choice
management advisory services
auditing
investment services
tax accounting
Which financial statement is reported as of a specific date?
Multiple Choice
Income Statement
Statement of Changes in Financial Position
Balance Sheet Statement of Owner’s Equity Identify the type of accounts that would appear on a firm’s income statement
Multiple Choice
revenues and expenses.
liabilities and expenses.
assets and liabilities.
assets and revenues.
A company issues periodic reports called
Multiple Choice
summaries.
financial statements.
tax returns.
audits.
Managerial accounting is
Multiple Choice
private accounting.
government accounting.
tax accounting.
public accounting.
Which of the following is NOT an area in which accountants usually practice?
Multiple Choice
Public Accounting
Governmental Accounting
Industrial Accounting
Managerial (Private) Accounting
All financial statements submitted to the SEC by publicly owned corporations must include an auditor’s report prepared by
Multiple Choice
an independent certified public accountant.
anyone in the accounting department. the firm’s managerial accountant.
an internal auditor.
The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is
Multiple Choice
the FCC.
the AICPA.
the SEC.
the AAA.
If the income statement covered a six-month period ending on November 30, 2019, the third line of the income statement heading would read:
Multiple Choice
Month Ended November 30, 2019.
November 30, 2019.
Six-month Period Ended November 30, 2019.
Month of November, 2019.
Which of the following is an example of an expense:
Multiple Choice
an owner withdrawal for personal use.
the receipt of cash from a credit customer.
the payment of a creditor on account.
the payment of the monthly utility bill.
Which financial statement is a representation of the accounting equation?
Multiple Choice
Balance Sheet
Income Statement Statement of Owner’s Equity
Profit and Loss Statement
Which of the following is NOT a type of information communicated by the financial statements?
Multiple Choice
how much the business owes others
what types of assets business owns
how long the business has been in operation
whether or not the business is profitable When the owner writes a company check to pay the company’s electric bill,
Multiple Choice expenses increase and owner’s equity increases. assets and owner’s equity decrease.
assets and liabilities decrease. assets and owner’s equity increase.
The rent paid for future months is a(n):
Multiple Choice
liability.
expense.
revenue.
asset.
When the owner withdraws cash for personal use,
Multiple Choice assets decrease and owner’s equity increases. owner’s equity decreases and revenue decreases. assets decrease and owner’s equity decreases.
assets decrease and expenses increase.
Choose the option below that reflects the correct order in which to prepare the three financial statements
Multiple Choice Income Statement; Statement of Owner’s Equity; Balance Sheet. Balance Sheet; Income Statement; Statement of Owner’s Equity. Income Statement; Balance Sheet; Statement of Owner’s Equity. Statement of Owner’s Equity; Balance Sheet; Income Statement.
Revenue by definition is:
Multiple Choice
an amount a business must pay in the future.
the payment of amounts owed to creditors.
amounts earned from the sale of goods or services.
the collection of amounts owed by customers.
Owners are not personally responsible for the debts of the business if the form of business organization is a
Multiple Choice
partnership.
sole proprietorship.
corporation.
nonprofit organization.
The financial activities of a business and the financial activities of the owners should be
Multiple Choice combined in the firm’s accounting records.
combined only if the owner wants them to be. reported in different parts of the firm’s accounting records.
kept totally and completely separate.
Managerial accountants usually do which of the following?
Multiple Choice
audit financial statements
prepare and audit tax returns
investigate companies for possible violations of law
prepare internal reports for management
The area of accounting that involves the preparation of internal reports for a firm’s executives and the analysis of the data in these reports to aid in decision making is known as
Multiple Choice
financial accounting.
managerial accounting.
auditing.
cost accounting.
Which of the following is a true statement in regards to the International Accounting Standards Board?
Multiple Choice
The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries
The IASB was created by the American Accounting Association
The IASB develops all accounting principles to be used in the United States
The IASB has the authority to audit financial statements of all US corporations
Which of the following equations is the Fundamental Accounting Equation?
Multiple Choice Assets + Liabilities = Owner’s Equity Assets – Owner’s Equity = Liabilities Assets = Liabilities + Owner’s Equity Assets – Liabilities = Owner’s Equity
Examples of assets are:
Multiple Choice
cash and accounts receivable.
equipment and revenue.
accounts receivable and rent expense.
investments by the owner and revenue.
The statement of financial position is another term for which financial statement?
Multiple Choice
Income Statement Statement of Owner’s Equity
Balance Sheet
Trial Balance
An Income Statement is all of the following except:
Multiple Choice
a formal report of business operations.
a profit and loss statement.
a statement of revenues less withdrawals and expenses.
a statement of income and expenses.
**********************************************
ACC 290 Week 1 Practice: Connect® Knowledge Check For more course tutorials visit
www.tutorialrank.com ACC 290 Week 1 Practice: Connect® Knowledge Check
Complete the Week 1 Knowledge Check in Connect®.
Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.
These assignments have earlier due dates, so plan accordingly.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the
Multiple Choice
corporation.
sole proprietorship.
nonprofit organization.
partnership.
When the owner invests equipment in a business,
Multiple Choice assets increase and owner’s equity decreases. assets and owner’s equity increase.
assets and revenue increase.
liabilities decrease and owner’s equity increases. The Statement of Owner’s Equity is calculated as follows:
Multiple Choice
beginning capital + net income + withdrawals + additional investments = ending capital beginning capital + net loss − withdrawals + additional investments = ending capital beginning capital + net income − withdrawals + additional investments = ending capital
beginning capital + net loss + withdrawals + additional investments = ending capital
The Financial Accounting Standards Board is responsible for
Multiple Choice
auditing financial statements.
developing generally accepted accounting principles.
establishing accounting systems for businesses.
making recommendations to the Securities and Exchange Commission.
The Balance Sheet heading includes each of the following except:
Multiple Choice firm’s name.
title of the report.
date of the report. firm’s address.
Tax planning includes
Multiple Choice
auditing tax returns.
correcting tax returns.
preparing tax returns.
suggesting actions to reduce tax liability.
Which of the following equations is the Fundamental Accounting Equation?
Multiple Choice Assets – Liabilities = Owner’s Equity Assets – Owner’s Equity = Liabilities Assets + Liabilities = Owner’s Equity Assets = Liabilities + Owner’s Equity
Tax accounting involves tax compliance and
Multiple Choice
tax configuration.
tax planning.
tax obfuscation.
tax evaluation.
Amounts that a business must pay in the future are known as:
Multiple Choice
capital.
liabilities.
assets.
expenses.
Identify the form of business that is considered a separate legal entity.
Multiple Choice
a limited liability partnership
a sole proprietorship
a partnership
a corporation
Which of the following is NOT a service of public accounting firms?
Multiple Choice
management advisory services
auditing
investment services
tax accounting
Which financial statement is reported as of a specific date?
Multiple Choice
Income Statement
Statement of Changes in Financial Position
Balance Sheet Statement of Owner’s Equity Identify the type of accounts that would appear on a firm’s income statement
Multiple Choice
revenues and expenses.
liabilities and expenses.
assets and liabilities.
assets and revenues.
A company issues periodic reports called
Multiple Choice
summaries.
financial statements.
tax returns.
audits.
Managerial accounting is
Multiple Choice
private accounting.
government accounting.
tax accounting.
public accounting.
Which of the following is NOT an area in which accountants usually practice?
Multiple Choice
Public Accounting
Governmental Accounting
Industrial Accounting
Managerial (Private) Accounting
All financial statements submitted to the SEC by publicly owned corporations must include an auditor’s report prepared by
Multiple Choice
an independent certified public accountant.
anyone in the accounting department. the firm’s managerial accountant.
an internal auditor.
The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is
Multiple Choice
the FCC.
the AICPA.
the SEC.
the AAA.
If the income statement covered a six-month period ending on November 30, 2019, the third line of the income statement heading would read:
Month Ended November 30, 2019.
November 30, 2019.
Six-month Period Ended November 30, 2019.
Month of November, 2019.
Which of the following is an example of an expense:
Multiple Choice
an owner withdrawal for personal use.
the receipt of cash from a credit customer.
the payment of a creditor on account.
the payment of the monthly utility bill.
Which financial statement is a representation of the accounting equation?
Multiple Choice
Balance Sheet
Income Statement Statement of Owner’s Equity
Profit and Loss Statement
Which of the following is NOT a type of information communicated by the financial statements?
Multiple Choice
how much the business owes others
what types of assets business owns
how long the business has been in operation
whether or not the business is profitable When the owner writes a company check to pay the company’s electric bill,
Multiple Choice expenses increase and owner’s equity increases. assets and owner’s equity decrease.
assets and liabilities decrease. assets and owner’s equity increase.
The rent paid for future months is a(n):
Multiple Choice
liability.
expense.
revenue.
asset.
When the owner withdraws cash for personal use,
Multiple Choice assets decrease and owner’s equity increases. owner’s equity decreases and revenue decreases. assets decrease and owner’s equity decreases.
assets decrease and expenses increase.
Choose the option below that reflects the correct order in which to prepare the three financial statements
Multiple Choice Income Statement; Statement of Owner’s Equity; Balance Sheet.
Balance Sheet; Income Statement; Statement of Owner’s Equity. Income Statement; Balance Sheet; Statement of Owner’s Equity. Statement of Owner’s Equity; Balance Sheet; Income Statement.
Revenue by definition is:
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ACC 290 Week 2 Apply: Connect® Exercise For more course tutorials visit
www.tutorialrank.com ACC 290 Week 2 Apply: Connect® Exercise Review the Knowledge Check in preparation for this assignment.
Complete the Week 2 Exercise in Connect®.
Note: You have only one attempt available to complete this assignment.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
The classification and normal balance of the salaries expense account is:
an expense with a credit balance.
a liability with a debit balance.
an asset with a debit balance.
an expense with a debit balance.
Which of the following accounts have normal credit balances?
Accounts Receivable and Fees Income
Salaries Expense and Accounts Payable
Fees Income and John Smith, Capital
Accounts Payable and Equipment
A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:
Multiple Choice
Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000
Debit Equipment $4,000; Credit Accounts Payable $4,000
Debit Equipment $5,500; Credit Accounts Payable $5,500
Debit Equipment $1,500; Credit Cash $1,500
A business pays a creditor on account. The entry to record this transaction is:
Multiple Choice
Debit Accounts Receivable; Credit Accounts Payable
Debit Cash; Credit Accounts Payable
Debit Accounts Receivable; Credit to Cash
Debit Accounts Payable; Credit Cash
The Net Income appears as a separate line item on what two statements?
Multiple Choice
the statement of owner’s equity and the income statement
the trial balance and the income statement the statement of owner’s equity and the balance sheet
the income statement and the balance sheet
The normal balance of an account is the:
Multiple Choice
increase side of the account.
the left side of the account.
decrease side of the account.
the right side of the account.
When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:
Multiple Choice
2.
9.
3.
5. Which of the following transactions increase owner’s equity?
Multiple Choice
earning revenue
paying expenses
owner withdrawals for personal use
receiving cash from customers on account
Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.
Multiple Choice
Statement of Owner’s Equity
Balance Sheet
Income Statement
Trial Balance
A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:
Multiple Choice
Debiting Utilities Expense; Crediting Accounts Receivable
Debiting Utilities Expense; Crediting Accounts Payable
Debiting Accounts Payable; Crediting Utilities Expense
Debiting Utilities Expense; Crediting Cash
Which of the following represents the proper sequence for preparing the financial statements?
Multiple Choice income statement, statement of owner’s equity, balance sheet statement of owner’s equity, income statement, balance sheet income statement, balance sheet, statement of owner’s equity balance sheet, statement of owner’s equity, income statement
The classification and normal balance of the accounts receivable account is:
Multiple Choice
a revenue with a debit balance.
an asset with a debit balance.
a liability with a debit balance.
an asset with a credit balance.
The ABC Company paid cash on account for supplies purchased last month. This would be recorded in the T-accounts as a:
Multiple Choice
debit Accounts Receivable and credit Cash.
debit to Accounts Payable and credit Cash.
debit Supplies and credit Accounts Payable.
debit Cash and credit Supplies. The account used to record increases in owner’s equity from the sale of goods or services is:
Multiple Choice
the drawing account.
the cash account.
the fees income account.
the capital account.
Which of the following does NOT describe a transposition?
Multiple Choice
It involves misplaced digits in a number.
It causes the difference between the debit total and the credit total to be divisible by 2.
It causes the trial balance to be out of balance.
It is an error.
A business earns $4,000 from various charge account clients. To record this transaction, the business would:
Multiple Choice
Debit Accounts Receivable; Credit Cash
Debit Accounts Payable; Credit Fees Income
Debit Accounts Receivable; Credit Fees Income
Debit Cash; Credit Accounts Receivable
Debits are used to record increases in:
Multiple Choice
assets and expenses.
assets and revenue. revenue and owner’s equity.
assets and liabilities.
Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?
Multiple Choice
Placing the Fees Income balance in the Credit column
Placing the Office Equipment balance in the Debit column
Placing the Prepaid Rent balance in the Credit column
Placing the Rent Expense balance in the Debit column
Which of the following accounts is NOT a nominal account?
Multiple Choice
Moriah Paige, Drawing
Office Supplies
Salaries Expense
Rent Revenue
When charge customers pay cash to apply against their accounts, the amount is recorded:
Multiple Choice
on the left side of the Cash account and the right side of the Accounts Receivable account.
on the left side of the Cash account and the left side of the Accounts Receivable account.
on the left side of the Accounts Payable account and the right side of the Cash account.
on the left side of the Cash account and the right side of the Fees Income account. The “Net Income” or “Net Loss” is transferred from the income statement to the
Multiple Choice
balance sheet. statement of owner’s equity.
chart of accounts.
trial balance.
Which of the following types of accounts normally have debit balances?
Multiple Choice
assets, liabilities, and owner’s equity
expenses and assets
assets and revenue liabilities and owner’s equity
Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?
Multiple Choice
debit Cash and credit Ty Knott, Capital
debit Cash and credit Salary Expense
debit Salary Expense and credit Cash
debit Ty Knott, Drawing, and credit Cash
An accounting system that involves recording the effects of each transaction as debits and credits is:
Multiple Choice
completing one T account.
analyzing a business transaction.
the double-entry system.
preparing financial statements.
A business performed $8,000 of services. Their customer paid $3,000 of the amount right away but charged the remaining amount. To record this transaction, the business would:
Multiple Choice
Debit Accounts Receivable $8,000 and; Credit Fees Income $8,000
Debit Cash $3,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $8,000
Debit Cash $3,000 and Debit Accounts Payable $5,000; Credit Fees Income $8,000
Debit Cash $3,000; Credit Fees Income $3,000
The total of the figures on the left side of a Cash account is $36,700. The total of the figures on the right side is $16,250. The balance of this account:
Multiple Choice
is $20,450 and would be recorded on the right side of the account.
is $52,950 and would be recorded on the left side of the account.
is $20,450 and would be recorded on the left side of the account.
is $52,950 and would be recorded on the right side of the account. On a statement of owner’s equity, beginning capital is $152,000, Drawing for the year is $65,000, and the ending capital is $191,000. What is the amount of Net Income for the year?
Multiple Choice
$126,000
$ 26,000
$104,000
$ 87,000
Credits are used to record:
Multiple Choice decreases in assets and owner’s equity and increases in liabilities. decreases in liabilities and increases in assets and owner’s equity.
increases in liabilities and revenues. increases in assets, liabilities, and owner’s equity.
The ending capital balance appears on what financial statement(s)
Multiple Choice
income statement and balance sheet. income statement and the statement of owner’s equity. statement of owner’s equity and the balance sheet.
only on the balance sheet.
A business purchases supplies on account. The entry to record this transaction is:
Multiple Choice
Debit to Supplies; Credit Accounts Receivable
Debit Supplies; Credit Accounts Payable
Debit Supplies; Credit to Cash
Debit to Cash; Credit Supplies
Which of the following would cause the Trial Balance to be out of balance?
Multiple Choice
Placing the Rent Expense account balance in the Debit column
Placing the Accounts Receivable balance in the Credit column
Placing the Equipment account balance in the Debit column
Placing the Capital account balance in the Credit column
Select the entry below to record the payment to employees for work performed during the pay period?
Multiple Choice
debit Cash, and credit Accounts Receivable
debit Salary Expense and credit Cash
debit Cash and credit Salary Expense
debit Salary Expense and credit Accounts Receivable **********************************************
ACC 290 Week 2 Practice: Connect® Knowledge Check For more course tutorials visit
www.tutorialrank.com ACC 290 Week 2 Practice: Connect® Knowledge Check Complete the Week 2 Knowledge Check in Connect®.
Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.
These assignments have earlier due dates, so plan accordingly.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:
Multiple Choice
Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000
Debit Equipment $4,000; Credit Accounts Payable $4,000
Debit Equipment $5,500; Credit Accounts Payable $5,500
Debit Equipment $1,500; Credit Cash $1,500
A business pays a creditor on account. The entry to record this transaction is:
Multiple Choice
Debit Accounts Receivable; Credit Accounts Payable
Debit Cash; Credit Accounts Payable
Debit Accounts Receivable; Credit to Cash
Debit Accounts Payable; Credit Cash
The Net Income appears as a separate line item on what two statements?
Multiple Choice the statement of owner’s equity and the income statement
the trial balance and the income statement the statement of owner’s equity and the balance sheet
the income statement and the balance sheet
The normal balance of an account is the:
Multiple Choice
increase side of the account.
the left side of the account.
decrease side of the account.
the right side of the account.
When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:
Multiple Choice
2.
9.
3.
5. Which of the following transactions increase owner’s equity?
Multiple Choice
earning revenue
paying expenses
owner withdrawals for personal use
receiving cash from customers on account
Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.
Multiple Choice Statement of Owner’s Equity
Balance Sheet
Income Statement
Trial Balance
A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:
Multiple Choice
Debiting Utilities Expense; Crediting Accounts Receivable
Debiting Utilities Expense; Crediting Accounts Payable
Debiting Accounts Payable; Crediting Utilities Expense
Debiting Utilities Expense; Crediting Cash
Which of the following represents the proper sequence for preparing the financial statements?
Multiple Choice income statement, statement of owner’s equity, balance sheet statement of owner’s equity, income statement, balance sheet income statement, balance sheet, statement of owner’s equity balance sheet, statement of owner’s equity, income statement
The classification and normal balance of the accounts receivable account is:
Multiple Choice
a revenue with a debit balance.
an asset with a debit balance.
a liability with a debit balance.
an asset with a credit balance.
The ABC Company paid cash on account for supplies purchased last month. This would be recorded in the T-accounts as a:
Multiple Choice
debit Accounts Receivable and credit Cash.
debit to Accounts Payable and credit Cash.
debit Supplies and credit Accounts Payable.
debit Cash and credit Supplies. The account used to record increases in owner’s equity from the sale of goods or services is:
Multiple Choice
the drawing account.
the cash account.
the fees income account.
the capital account.
Which of the following does NOT describe a transposition?
Multiple Choice
It involves misplaced digits in a number.
It causes the difference between the debit total and the credit total to be divisible by 2.
It causes the trial balance to be out of balance.
It is an error.
A business earns $4,000 from various charge account clients. To record this transaction, the business would:
Multiple Choice
Debit Accounts Receivable; Credit Cash
Debit Accounts Payable; Credit Fees Income
Debit Accounts Receivable; Credit Fees Income
Debit Cash; Credit Accounts Receivable
Debits are used to record increases in:
Multiple Choice
assets and expenses.
assets and revenue. revenue and owner’s equity.
assets and liabilities.
Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?
Multiple Choice
Placing the Fees Income balance in the Credit column
Placing the Office Equipment balance in the Debit column
Placing the Prepaid Rent balance in the Credit column
Placing the Rent Expense balance in the Debit column
Which of the following accounts is NOT a nominal account?
Multiple Choice
Moriah Paige, Drawing
Office Supplies
Salaries Expense
Rent Revenue
When charge customers pay cash to apply against their accounts, the amount is recorded:
Multiple Choice
on the left side of the Cash account and the right side of the Accounts Receivable account.
on the left side of the Cash account and the left side of the Accounts Receivable account.
on the left side of the Accounts Payable account and the right side of the Cash account.
on the left side of the Cash account and the right side of the Fees Income account. The “Net Income” or “Net Loss” is transferred from the income statement to the
Multiple Choice
balance sheet. statement of owner’s equity.
chart of accounts.
trial balance.
Which of the following types of accounts normally have debit balances?
Multiple Choice assets, liabilities, and owner’s equity
expenses and assets
assets and revenue liabilities and owner’s equity
Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?
Multiple Choice
debit Cash and credit Ty Knott, Capital
debit Cash and credit Salary Expense
debit Salary Expense and credit Cash
debit Ty Knott, Drawing, and credit Cash
An accounting system that involves recording the effects of each transaction as debits and credits is:
Multiple Choice
completing one T account.
analyzing a business transaction.
the double-entry system.
preparing financial statements.
A business performed $8,000 of services. Their customer paid $3,000 of the amount right away but charged the remaining amount. To record this transaction, the business would:
Multiple Choice
Debit Accounts Receivable $8,000 and; Credit Fees Income $8,000
Debit Cash $3,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $8,000
Debit Cash $3,000 and Debit Accounts Payable $5,000; Credit Fees Income $8,000
Debit Cash $3,000; Credit Fees Income $3,000
The total of the figures on the left side of a Cash account is $36,700. The total of the figures on the right side is $16,250. The balance of this account:
Multiple Choice
is $20,450 and would be recorded on the right side of the account.
is $52,950 and would be recorded on the left side of the account.
is $20,450 and would be recorded on the left side of the account.
is $52,950 and would be recorded on the right side of the account. On a statement of owner’s equity, beginning capital is $152,000, Drawing for the year is $65,000, and the ending capital is $191,000. What is the amount of Net Income for the year?
Multiple Choice
$126,000
$ 26,000
$104,000
$ 87,000
Credits are used to record:
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ACC 290 Week 3 Apply: ConnectÂŽ Exercise For more course tutorials visit
www.tutorialrank.com ACC 290 Week 3 Apply: ConnectÂŽ Exercise
Review the Knowledge Check in preparation for this assignment.
Complete the Week 3 Exercise in ConnectÂŽ.
Note: You have only one attempt available to complete this assignment.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
In which of the following transactions would Utilities Expense be debited:
Multiple Choice
the company received a bill for utilities to be paid the following month the company received and paid a bill for utilities the company paid a utility bill on account both A and B The journal entry to record the payment of the monthly rent would include:
Multiple Choice
a debit to Rent Expense and a credit to Cash. a debit to Capital and a credit to Cash. a debit to Rent Expense and a credit to Capital.
a debit to Rent Expense and a credit to Accounts Receivable. The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include:
Multiple Choice
a debit to Sue Snow, Capital, and a credit to Cash. a debit to Utilities Expense and a credit to Cash. a debit to Sue Snow, Capital and a credit to Utilities Expense. a debit to Sue Snow, Drawing and a credit to Cash. The journal entry to record a payment made in January for rent for the months of February and March would include:
Multiple Choice
a debit to Rent Expense, and a credit to Sue Snow, Capital. a debit to Prepaid Rent and a credit to Cash. a debit to Rent Expense and a credit to Cash. a debit to Sue Snow, Drawing and a credit to Rent Expense. Agatha Panthis Landscape Architect Company earned $2,500 of revenue collecting $1,000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is:
rev: 12_08_2017_QC_CS-111818
Multiple Choice
Debit Fees Income $2,500; Credit Accounts Receivable $2,500 Debit Cash $1,000; Credit Fees Income $1,000 Debit Cash $1,000; Debit Accounts Receivable $1,500; Credit Fees Income $2,500 Debit Fees Income $2,500; Credit Cash $1,000; credit Accounts Receivable $1,500 The journal entry to record the payment of salaries for the month is:
Multiple Choice
Debit Salaries Expense; Credit Cash Debit Cash; Credit Salaries Expense Debit Salaries; Credit Accounts Payable Debit Cash; Credit Salaries Payable On June 1, XYZ Inc. paid $400 to its landlord for rent for the current month. The journal entry to record this transaction is:
Multiple Choice
Prepaid Rent $ 400
Rent Expense
$ 400
________________________________________
Prepaid Rent $ 400
Cash
$ 400
________________________________________
Rent Expense $ 400
Cash
$ 400
________________________________________
Cash $ 400
Rent Expense
$ 400
________________________________________
ABC Co. performed $5,000 of consulting work. Their customer paid them $3,500 right away and agreed to pay the balance in 30 days. Select the correct journal entry from the options below to record the transaction:
Multiple Choice
a debit to Cash for $3,500, a debit to Accounts Receivable for $1,500 and a credit to Capital for $5,000. a debit to Cash for $3,500 and a credit to Fees Income for $3,500. a debit to Cash for $3,500; a debit to Accounts Receivable for $1,500 and a credit to Fees Income for $5,000. a debit to Fees Income for $5,000, a credit to Cash for $3,500 and a credit to Accounts Receivable for $1,500. Listed below in random order are the steps in the accounting cycle.
(1) prepare the financial statements
(2) post the journal entries to the ledger
(3) record journal entries
(4) prepare a trial balance
What is the proper order of these steps?
Multiple Choice
(2), (3), (4), (1) (3), (2), (4), (1) (4), (3), (2), (1) (3), (2), (1), (4)
Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?
Multiple Choice
Debit Shop Equipment $4,500; credit Office Equipment $4,500 Debit Office Equipment $4,500; credit Shop Equipment $4,500 Debit Cash $4,500; credit Shop Equipment $4,500 Debit Office Equipment $4,500; credit Cash $4,500 **********************************************
ACC 290 Week 3 Practice: Connect® Knowledge Check For more course tutorials visit
www.tutorialrank.com ACC 290 Week 3 Practice: Connect® Knowledge Check
Complete the Week 3 Knowledge Check in Connect®.
Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.
These assignments have earlier due dates, so plan accordingly.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include:
Multiple Choice
a debit to Equipment for $100 and a credit to Accounts Payable for $400.
debit to Equipment for $500 and a credit to Cash for $500.
a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.
a debit to Equipment for $100 and a credit to Cash for $100.
Which of the following statements is CORRECT?
Multiple Choice
Compound entries include only debits.
Accounts being debited should always follow the accounts being credited in a compound entry.
Compound entries affect more than one debit and/or more than one credit.
All transactions require compound entries.
The account numbers from the ledger are recorded in the Posting Reference column of the general journal:
Multiple Choice
after each amount is posted.
as the transaction is journalized.
after all entries on the journal page have been posted.
as the first amount written in the journal.
The journal entry to record the performance of services for cash would include:
Multiple Choice
a debit to Fees Income and a credit to Cash.
a debit to Cash and a credit to Accounts Receivable.
a debit to Cash and a credit to Fees Income. a debit to Accounts Receivable and a credit to Cash. If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:
Multiple Choice
the journal the source document the ledger the chart of accounts Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:
Multiple Choice
Debit Cash; Credit Utilities Expense Debit Accounts Payable; Credit Cash Debit Utilities Expense; Credit Accounts Payable Debit Utilities Expense; Credit Cash Transactions in a journal are initially recorded in:
Multiple Choice
alphabetical order. dollar amount order. chronological order. randomly. When recording a business transaction into the general ledger, certain steps are followed. Identify the statement below that is NOT CORRECT regarding this process.
Multiple Choice
After posting a transaction, the new balance in an account can be seen in the general ledger. The process of transferring data from the journal to the ledger is called posting. All transactions are recorded first in the general journal and then they are transferred to the general ledger. All transactions are recorded first in the general ledger and then they are transferred to the journal. When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.
Multiple Choice
All transactions are recorded first in the general ledger and then they are journalized in the journal. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines. An explanation is indented and entered on the line underneath the last credit in the entry. No dates are used in the journal. Constantine Corporation reported Net Income for the year ended December 31, 2019, of $23,760 then discovered that the entry to pay the rent for December in the amount of $1,600 was not journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?
Multiple Choice
$20,560 $23,760 $22,160 $25,360 Which of the following statements is NOT correct?
Multiple Choice If goods are purchased on credit, the supplier’s invoice number is used as the source document for the transaction. The description of a journal entry should include a reference to the source of the information contained in the entry.
The credit portion of a general journal entry is always recorded first.
A firm should be able to trace amounts through the accounting records and back to their source documents. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?
Multiple Choice
Debit Accounts Receivable $1,350; credit Cash $1,350 Debit Fees Income $1,350; credit Cash $1,350 Debit Cash $1,350; credit Accounts Receivable $1,350 Debit Accounts Receivable $1,350; credit Fees Income $1,350 The journal entry to record the payment of the monthly rent would include:
Multiple Choice
a debit to Rent Expense and a credit to Cash. a debit to Capital and a credit to Cash. a debit to Rent Expense and a credit to Capital. a debit to Rent Expense and a credit to Accounts Receivable. Agatha Panthis Landscape Architect Company earned $2,500 of revenue collecting $1,000 immediately and will collect the remaining amount in 30 days. The journal entry to record this transaction is:
rev: 12_08_2017_QC_CS-111818
Multiple Choice
Debit Fees Income $2,500; Credit Accounts Receivable $2,500 Debit Cash $1,000; Credit Fees Income $1,000 Debit Cash $1,000; Debit Accounts Receivable $1,500; Credit Fees Income $2,500 Debit Fees Income $2,500; Credit Cash $1,000; credit Accounts Receivable $1,500 Which of the following statements is CORRECT?
Multiple Choice
Some companies use the general ledger instead of a general journal. The general ledger contains the accounts that are used to prepare the financial statements. When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger. When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal. The accounts on the Trial Balance are always listed in the following order:
Multiple Choice
Assets, Liabilities, Equity, Revenue, Expense Assets, Equity, Expense, Liabilities, Revenue Expense, Revenue, Equity, Liabilities, Assets Assets, Expense, Liabilities, Equity, Revenue If the owner of the business wants to see both the debit and credit entry for a specific transaction, he would look in:
Multiple Choice
the ledger the chart of accounts the source document the journal On December 5, Honor Consulting Services issued a check to purchase $1,800 of office equipment. The journal entry to record this transaction is:
Multiple Choice
Office Equipment $ 1,800
Accounts Receivable
$ 1,800
________________________________________
Cash $ 1,800
Accounts Payable
$ 1,800
________________________________________
Office Equipment $ 1,800
Cash
$ 1,800
________________________________________
Cash $ 1,800
Office Equipment
$ 1,800
________________________________________
Which of the following statements is CORRECT?
Multiple Choice
If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry. If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it. All errors made in journal entries should be corrected by the preparation of a correcting journal entry. If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry. On December 1, the Accounts Receivable account had a $22,000 debit balance. During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:
Multiple Choice
a $24,700 credit balance. a $23,700 credit balance. a $19,300 debit balance. a $24,700 debit balance. Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?
Multiple Choice
Debit Shop Equipment $4,500; credit Office Equipment $4,500 Debit Office Equipment $4,500; credit Shop Equipment $4,500 Debit Cash $4,500; credit Shop Equipment $4,500 Debit Office Equipment $4,500; credit Cash $4,500 The general ledger accounts are usually arranged in the following order:
Multiple Choice
first the temporary accounts, then the permanent accounts. first the accounts with debit balances, then the accounts with credit balances. first the accounts used most often, then those used less frequently. first the balance sheet accounts, then the income statement accounts.
A company purchased equipment costing $15,000. They paid $1,000 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include:
Multiple Choice
a debit to Equipment for $15,000, a credit to Cash for $1,000 and a credit to Accounts Payable for $14,000. a debit to Equipment for $15,000 and a credit to Cash for $15,000.
a debit to Equipment for $1,000 and a credit to Cash for $1,000. a debit to Equipment for $14,000 and a credit to Accounts Payable for $14,000. On December 10, Yummy Catering purchased a new oven costing $10,000. They issued a check a check for $2,000 and promised to pay the balance in 30 days. The journal entry to record this transaction is:
Multiple Choice
Equipment $ 2,000 Accounts Payable
$ 8,000
________________________________________
Equipment $ 8,000
Cash
$ 8,000
________________________________________
Equipment $ 8,000
Cash $ 2,000
Accounts Payable
$ 10,000
________________________________________
Equipment $ 10,000
Cash
$ 2,000
Accounts Payable
$ 8,000
________________________________________
Anna Conda Landscaping service received a bill for the utilities used during September. The bill will be paid in October. The journal entry to record the utility bill received is:
Multiple Choice
Debit Utilities Expense; Credit Accounts Payable
Debit Accounts Payable; Credit Cash Debit Utilities Expense; Credit Cash Debit Cash; Credit Utilities Expense The Cash account has a $15,000 debit balance. A $5,000 credit entry and a $7,000 debit entry are posted to the account. The final balance of the Cash account is:
Multiple Choice
a $13,000 debit balance. a $3,000 debit balance. a $27,000 debit balance. a $17,000 debit balance. Which of the following statements is CORRECT?
Multiple Choice
All errors made in journal entries should be corrected by the preparation of a correcting journal entry. If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry. If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it. If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry. On December 1, the Accounts Receivable account had a $22,000 debit balance. During December the business earned $10,500 in revenue on account and collected $13,200 from its charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is:
Multiple Choice
a $24,700 debit balance. a $19,300 debit balance. a $23,700 credit balance. a $24,700 credit balance. When an entry is made in the general journal,
Multiple Choice
the first account entered should be indented.
asset accounts should be indented. the accounts to be credited should be indented. liability, capital, and revenue accounts should be indented. When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.
Multiple Choice
All transactions are recorded first in the general ledger and then they are journalized in the journal. No dates are used in the journal. An explanation is indented and entered on the line underneath the last credit in the entry. All credited accounts are listed first and then all debited accounts are indented and listed on the next lines.
**********************************************
ACC 290 Week 4 Apply: Connect® Exercise For more course tutorials visit
www.tutorialrank.com ACC 290 Week 4 Apply: Connect® Exercise
Review the Knowledge Check in preparation for this assignment.
Complete the Week 4 Exercise in Connect®.
Note: You have only one attempt available to complete this assignment.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
A total of $3,700 in supplies was purchased during the year. By the end of the year, the company had used $2,200 of the supplies. The adjusting entry needed at the end of the year is:
Multiple Choice
debit Supplies $2,200; credit Supplies Expense $2,200 debit Supplies Expense $1,500; credit Supplies $1,500
debit Supplies Expense $2,200; credit Supplies $2,200 debit Supplies Expense $3,700; credit Supplies $3,700
On November 1, 2019, Peaches Consulting Service paid $4,800 for 12 months of advance rent on its office space. The correct adjusting entry on December 31, 2019, to show the amount of rent that had expired would include:
Multiple Choice
debit Rent Expense $400; credit Prepaid Rent $400 debit Rent Expense $800; credit Prepaid Rent $800 debit Prepaid Rent $4,000; credit Rent Expense $4,000 debit Rent Expense $4,800; credit Prepaid Rent $4,800 Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be:
Multiple Choice
$12. $720. $600. $60.
On October 25, 2019, the company paid $24,000 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include:
Multiple Choice
a $8,000 debit to Rent Expense. a $8,000 credit to Rent Expense. a $4,000 credit to Prepaid Rent. a $24,000 credit to Cash. During its first year of business, XYZ Inc. purchased $1,600 of supplies. By the end of the year, only $500 of supplies remain in the supply cabinet. Determine the amount to be reported in the Supplies account in the Adjusted Trial Balance section of the worksheet prepared on December 31.
Multiple Choice
$2,100 $1,600 $1,100 $500 The adjusting entry to account for the expiration of prepaid advertising consists of:
Multiple Choice
a debit to Prepaid Advertising and a credit to Advertising Expense. a debit to Advertising Expense and a credit to Accumulated Depreciation. a debit to Prepaid Advertising and a credit to Accumulated Depreciation. a debit to Advertising Expense and a credit to Prepaid Advertising. Which of the following statements is correct?
Multiple Choice The cost of supplies used is reported on the statement of owner’s equity. The cost of supplies used represents an operating expense of the business. At the time of their acquisition, prepaid expenses are recorded in expense accounts. Accumulated Depreciation–Equipment is presented in the Liabilities section of a balance sheet. On a balance sheet, Accumulated Depreciation—Equipment is reported:
Multiple Choice
as a contra-asset on the Balance Sheet. as an expense on the Income Statement. as a liability on the Income Statement. as owner’s equity on the Balance Sheet
A consecutive, twelve-month accounting period is called a(n):
Multiple Choice
accrual year. accounting year. fiscal year. adjusted year. The adjustments made on the worksheet:
Multiple Choice
are recorded in the journal and then posted to the general ledger accounts. need not be entered in the journal or the ledger. are posted to the ledger but are not recorded in the journal. are recorded in the journal but are not posted to the ledger.
ACC 290 Week 4 Practice: ConnectÂŽ Knowledge Check For more course tutorials visit
www.tutorialrank.com ACC 290 Week 4 Practice: ConnectÂŽ Knowledge Check
Complete the Week 4 Knowledge Check in Connect®.
Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.
These assignments have earlier due dates, so plan accordingly.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
On a worksheet, a net loss is:
Multiple Choice
not recorded. recorded in the Balance Sheet Credit column. recorded in the Income Statement Debit column. recorded in the Balance Sheet Debit column. On December 31, Treats Catering Inc.’s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $350 of supplies actually remain in the supply cabinet. Select the adjusting entry made on December 31, to record the amount of supplies that had been used during the year.
Multiple Choice
Supplies Expense………..
$
Supplies…………….
350 $
350
________________________________________ Supplies Expense………..
$
Supplies…………….
650 $
650
________________________________________ Supplies………..
$
350
Supplies Expense…………….
$
350
________________________________________ Supplies………..
$
650
Supplies Expense…………….
$
650
________________________________________
On January 1, 2019, Johnson Consulting purchased a truck for $18,000. The truck is expected to last 60 months and have no salvage value. Calculate the book value of the truck on December 31, 2020.
Multiple Choice
$3,600 $10,800 $14,400 $7,200
On October 25, 2019, the company paid $24,000 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include:
Multiple Choice
a $8,000 debit to Rent Expense. a $8,000 credit to Rent Expense. a $4,000 credit to Prepaid Rent. a $24,000 credit to Cash. Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?
Multiple Choice
Debit Depreciation; credit Depreciation Expense Debit Depreciation Expense; credit Accumulated Depreciation Debit Accumulated Depreciation; credit Depreciation Expense Debit Depreciation Expense; credit Equipment On July 1, Sidney Consulting Services paid $18,000 for 12 months of advance rent on its office building. Select the adjusting entry made on December 31, to record the amount of rent that had expired during the year.
Multiple Choice Rent Expense………..
$
Prepaid Rent…………….
9,000 $
9,000
________________________________________ Prepaid Rent………..
$
18,000
Rent Expense…………….
$
18,000
________________________________________ Rent Expense………..
$
Prepaid Rent…………….
10,500 $
10,500
________________________________________ Prepaid Rent………..
$
Rent Expense…………….
10,500 $
10,500
The adjusting entry to account for the expiration of prepaid insurance consists of:
Multiple Choice
a debit to Insurance Expense and a credit to Accumulated Depreciation. a debit to Insurance Expense and a credit to Prepaid Insurance. a debit to Accumulated Depreciation and a credit to Prepaid Insurance. a debit to Prepaid Insurance and a credit to Accumulated Depreciation. The unadjusted net income on the income statement was $46,850. After journalizing and posting the adjusting entry for the $2,300 of supplies used during the year, the adjusted net income is:
Multiple Choice
$45,700.
$49,150. $46,850. $44,550. MacGyver Company bought equipment on January 3, 2019, for $52,000. At the time of purchase, the equipment was estimated to have a useful life of five years and a salvage value of $4,000. Using the straight-line method, the amount of one year’s depreciation is:
Multiple Choice
$10,400. $4,000. $1,200. $9,600. Accumulated Depreciation, Equipment, is shown as:
Multiple Choice
an addition to expenses on the Income Statement. a deduction from assets on the Balance Sheet. an addition to assets on the Balance Sheet. a deduction of Capital on the Statement of Owner’s Equity. Accumulated Depreciation, Equipment, is shown as:
Multiple Choice
an addition to expenses on the Income Statement. a deduction from assets on the Balance Sheet.
an addition to assets on the Balance Sheet. a deduction of Capital on the Statement of Owner’s Equity. Which of the following statements is correct?
Multiple Choice The cost of supplies used is reported on the statement of owner’s equity. The cost of supplies used represents an operating expense of the business. At the time of their acquisition, prepaid expenses are recorded in expense accounts. Accumulated Depreciation–Equipment is presented in the Liabilities section of a balance sheet. On a worksheet, the adjusted balance of the Supplies account is extended to:
Multiple Choice
the Balance Sheet Debit column. the Income Statement Debit column. the Income Statement Credit column. the Balance Sheet Credit column.
Which of the following need not be completed separately if a worksheet is prepared?
Multiple Choice
a balance sheet a trial balance a statement of owner’s equity an income statement The adjustments made on the worksheet:
Multiple Choice
are recorded in the journal and then posted to the general ledger accounts. need not be entered in the journal or the ledger. are posted to the ledger but are not recorded in the journal. are recorded in the journal but are not posted to the ledger. If the prepaid expenses are not adjusted, assets on the balance sheet:
Multiple Choice
will not be affected. may be either overstated or understated. will be overstated.
will be understated. The unadjusted net income on the income statement was $23,760. After journalizing and posting the adjusting entries for the $1,620 of supplies used and $3,700 of depreciation on the company’s equipment for the year, the adjusted net income is:
Multiple Choice
$25,840. $29,080. $21,680. $18,440.
The total assets on the balance sheet was $128,800 before journalizing and posting the adjusting entries for $800 of expired insurance, $2,400 of expired rent and $900 of depreciation. What are the total assets after journalizing and posting the adjusting?
Multiple Choice
$128,800. $126,500. $124,700. $132,900.
A total of $2,800 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:
Multiple Choice
debit Supplies $2,100; credit Supplies Expense $2,100 debit Supplies Expense $2,100; credit Supplies $2,100 debit Supplies Expense $2,800; credit Supplies $2,800 debit Supplies Expense $700; credit Supplies $700 Which of the following statements is not correct?
Multiple Choice
Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset. Buildings and trucks are examples of long-term assets. The book value of a long-term asset is reduced each year as depreciation is recorded. Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset. Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be:
Multiple Choice
$12. $720. $600. $60. The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents 12 months rent paid on November 1. The adjusting entry required on December 31 to show the amount of rent that had expired is:
Multiple Choice Rent Expense………..
$
1,000
Prepaid Rent…………….
$
1,000
________________________________________
Rent Expense………..
$
Cash…………….
12,000 $
12,000
________________________________________ Rent Expense………..
$
Prepaid Rent…………….
2,000 $
2,000
________________________________________ Prepaid Rent………..
$
Rent Expense…………….
12,000 $
12,000
________________________________________
If long-term assets are not adjusted, expenses on the income statement:
Multiple Choice
may be either overstated or understated. will be overstated. will not be affected. will be understated. If a worksheet is prepared at the end of the accounting year,
Multiple Choice
the financial statements are prepared using the worksheet data. preparation of the financial statements is not required. the adjusting entries do not need to be journalized.
only a balance sheet is required. B. Consulting purchased a machine for $6,000 on August 1, 2019. The company expects the useful life of the machine to be 5 years and no salvage value is expected. If the company uses the straight-line method to depreciate the machine, what will be the depreciation adjustment for the year ending December 31, 2019?
Multiple Choice
Debit Depreciation Expense $500 and Credit Accumulated Depreciation $500. Debit Depreciation Expense $500 and Credit Equipment $500. Debit Depreciation Expense $400 and Credit Accumulated Depreciation $400. Debit Accumulated Depreciation $100 and Credit Depreciation Expense $100.
A consecutive, twelve-month accounting period is called a(n):
Multiple Choice
accrual year. accounting year. fiscal year. adjusted year. The book value of long-term assets is reported on:
Multiple Choice the statement of owner’s equity. the balance sheet. the worksheet. the income statement. On a balance sheet, Accumulated Depreciation—Equipment is reported:
Multiple Choice
as a contra-asset on the Balance Sheet. as an expense on the Income Statement. as a liability on the Income Statement. as owner’s equity on the Balance Sheet
Adjusting Entries are:
Multiple Choice
not required. corrections of errors. updating entries for previously unrecorded expenses or revenues.
will always affect cash. On a worksheet, the adjusting entry to account for depreciation of equipment consists of:
Multiple Choice
a debit to Depreciation Expense and a credit to Equipment. a debit to Accumulated Depreciation and a credit to Equipment. a debit to Depreciation Expense and a credit to Accumulated Depreciation. a debit to Accumulated Depreciation and a credit to Depreciation Expense. On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:
Multiple Choice
the Balance Sheet Debit column. the Income Statement Credit column. the Income Statement Debit column. the Balance Sheet Credit column. **********************************************
ACC 290 Week 5 Apply: ConnectÂŽ Exercise For more course tutorials visit
www.tutorialrank.com
ACC 290 Week 5 Apply: Connect® Exercise
Review the Knowledge Check in preparation for this assignment.
Complete the Week 5 Exercise in Connect®.
Note: You have only one attempt available to complete this assignment.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date
Use the following account balances from the adjusted trial balance of Gees Catering:
Account Debit Balance Credit Balance
Cash
10,000
Accounts Payable
2,000
Gees, Drawing 1,000 Gees, Capital Fees Revenue
18,000 10,000
Salary Expense
Rent Expense
7,000
6,000
Supplies Expense
6,000
________________________________________
Select the correct closing entry that Gees Catering would make to close their revenue account(s) at the end of the accounting period.
Multiple Choice
Income Summary $
Fees Revenue
10,000
$
10,000
________________________________________
Gees, Capital $ 10,000 Fees Revenue
$
10,000
________________________________________
Fees Revenue $
10,000
Income Summary
$
10,000
________________________________________
Fees Revenue $
Gees, Capital
10,000
$
10,000
________________________________________
After the closing entries are posted to the ledger, each expense account will have:
Multiple Choice
a debit balance. a credit balance. a negative balance. a zero balance. Which of the following accounts is not closed?
Multiple Choice
Cash Fees Income
Rent Expense Joan Wilson, Drawing After the closing entries are posted to the ledger, each revenue account will have:
Multiple Choice
a zero balance. a debit balance. a credit balance. either a debit or a credit balance. A post-closing trial balance could include all of the following accounts except the:
Multiple Choice owner’s capital account. Cash account. Accounts Receivable account. Fees Income account. Which of the following accounts has a normal debit balance?
Multiple Choice
Accounts Receivable
Accounts Payable Fees Income Stark, Capital Which of the following accounts has a normal credit balance?
Multiple Choice
Accounts Payable Accounts Receivable Supplies Expense Stark, Drawing Which of the following statements is correct?
Multiple Choice
The Balance Sheet section of the worksheet contains the data that is used to make closing entries. The balance of the owner’s drawing account will appear on the postclosing trial balance. Closing entries are entered directly on the worksheet. Preparation of the post-closing trial balance is the last step in the endof-period routine. Information in the financial statements provides answers to many questions, including:
Multiple Choice
How much do customers owe the business? What are the business’ current and long term plans for expansion? Has the business achieved its net income goal for the year? Has there been a lot of employee turnover? After the transactions have been posted, the next step in the accounting cycle is to:
Multiple Choice
prepare the financial statements. prepare the post-closing trial balance. prepare the worksheet. journalize and post the adjusting entries.
ACC 290 Week 5 Practice: Connect® Knowledge Check For more course tutorials visit
www.tutorialrank.com ACC 290 Week 5 Practice: Connect® Knowledge Check
Complete the Week 5 Knowledge Check in Connect®.
Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.
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One purpose of closing entries is to zero out the balances in the:
Multiple Choice
expense and capital accounts.
asset and liability accounts. revenue and expense accounts. liability and capital accounts.
Identify the accounts below that are ALL classified as temporary accounts.
Multiple Choice Owner’s Drawing, Owner’s Capital, Income Summary Accounts Receivable, Depreciation Expense, Fees Income
Wages Expense, Accumulated Depreciation, Fees Income Owner’s Drawing, Depreciation Expense, Income Summary The first two closing entries to the Income Summary account indicate a debit of $47,000 and a credit of $41,000. The third closing entry would be:
Multiple Choice
debit Income Summary $47,000; credit Capital $47,000 debit Income Summary $41,000; credit Expenses $41,000 debit Capital $6,000; credit Income Summary $6,000 debit Income Summary $6,000; credit Drawing $6,000 Which of the following statements is not correct?
Multiple Choice The balance of the owner’s capital account on the adjusted trial balance will usually be different than that reported on the post-closing trial balance. The audit trail should be used to trace data through the accounting records to find and correct errors. If the post-closing trial balance does not balance, there are errors in the accounting records. The balance of the owner’s capital account, as reflected on the postclosing trial balance, will match the amount reported on the income statement.
After the closing entries are posted to the ledger, each revenue account will have:
Multiple Choice
a debit balance. either a debit or a credit balance. a credit balance. a zero balance. The first two closing entries to the Income Summary account indicate a debit of $53,000 and a credit of $64,000. The third closing entry would be:
Multiple Choice
debit Capital $11,000; credit Income Summary $11,000. debit Income Summary $11,000; credit Capital $11,000. debit Income Summary $11,000; credit Drawing $11,000. debit Revenue $64,000; credit Expenses $53,000. Listed below in random order are the steps in the accounting cycle.
(1) prepare the financial statements
(2) post the journal entries to the ledger
(3) record journal entries
(4) prepare a trial balance
What is the proper order of these steps?
Multiple Choice
(2), (3), (4), (1) (3), (2), (4), (1) (4), (3), (2), (1) (3), (2), (1), (4) Information in the financial statements provides answers to many questions, including:
Multiple Choice
Has there been a lot of employee turnover? How much do customers owe the business? Has the business achieved its net income goal for the year? What are the business’ current and long term plans for expansion?
Which of the following accounts is a permanent account?
Multiple Choice
Supplies Fees Income Owner’s drawing Supplies Expense If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is:
Multiple Choice
a debit to Capital and a credit to Income Summary. a debit to Income Summary and a credit to Fees Income. a debit to Capital and a credit to Drawing. a debit to Income Summary and a credit to Capital. Use the following account balances from the adjusted trial balance of Gees Catering:
Account Debit Balance Credit Balance
Cash
10,000
Accounts Payable
2,000
Gees, Drawing 1,000 Gees, Capital Fees Revenue
18,000 10,000
Salary Expense
Rent Expense
Supplies Expense
7,000
6,000
6,000
________________________________________
What is the amount that Gees Consulting would report as the ending balance in the R. Gees, Capital account at the end of the year?
Multiple Choice
$26,000 $28,000 $ 8,000 $18,000 The entry to transfer a net loss to the owner’s capital account would include:
Multiple Choice
a debit to the Capital account and a credit to Cash. a debit to Income Summary and a credit to Capital.
a debit to the Capital account and a credit to Income Summary. a debit to the Capital account and a credit to the Drawing account.
Use the following account balances from the adjusted trial balance of Gees Catering:
Account Debit Balance Credit Balance
Cash
10,000
Accounts Payable
2,000
Gees, Drawing 1,000 Gees, Capital
18,000
Fees Revenue
Salary Expense
Rent Expense
Supplies Expense
10,000
7,000
6,000
6,000
Select the correct closing entry that Gees Catering would make to close the owner’s withdrawal account at the end of the accounting period.
Multiple Choice
Gees, Drawing $ 1,000 Income Summary
$
1,000
________________________________________
Income Summary $
1,000
Gees, Drawing
1,000
$
________________________________________
Gees, Drawing $ 1,000
Gees, Capital
$
1,000
________________________________________
Gees, Capital $ 1,000 Gees, Drawing
$
1,000
________________________________________
The first step in the closing process is to close:
Multiple Choice
the expense account(s). the capital account. the drawing account. the revenue account(s). Which of the following statements is correct?
Multiple Choice
Closing entries are entered directly on the worksheet. The Balance Sheet section of the worksheet contains the data that is used to make closing entries. Preparation of the post-closing trial balance is the last step in the endof-period routine. The balance of the owner’s drawing account will appear on the postclosing trial balance. Use the following account balances from the adjusted trial balance of ABC Consulting:
Account Debit Balance Credit Balance
Cash
20,500
Accounts Payable
2,000
Conway, Drawing 600 Conway, Capital
13,000
Fees Revenue
18,000
Salary Expense
Rent Expense
2,600
3,000
Supplies Expense
Advertising Expense
1,900
800
________________________________________
What is the amount that ABC Consulting would report as the ending balance in the B. Conway, Capital account at the end of the year?
Multiple Choice
$22,100. $3,900 $31,000. $13,000.
Trial balances are prepared in a certain order. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared?
Multiple Choice
post-closing trial balance, adjusted trial balance, trial balance. trial balance, adjusted trial balance, post-closing trial balance. adjusted trial balance, trial balance, post-closing trial balance. trial balance, post-closing trial balance, adjusted trial balance. The asset, liability, and owner’s capital accounts appear on all of the following except the:
Multiple Choice
post-closing trial balance. balance sheet. income statement. worksheet. Which of the following statements is not correct?
Multiple Choice The owner’s drawing account is closed to the Income Summary account.
The Income Summary account is used only at the end of an accounting period to help with the closing procedure. The Income Summary account is a temporary owner’s equity account. Before the Income Summary account is closed, its balance represents the net income or net loss for the accounting period. The revenue account Fees Income is closed by:
Multiple Choice
debiting Income Summary and crediting Fees Income. debiting Cash and crediting Fees Income. debiting Fees Income and crediting Income Summary. debiting the owner’s capital account and crediting Fees Income. After the worksheet has been completed, the next step in the accounting cycle is to:
Multiple Choice
prepare the post-closing trial balance. post the closing entries. prepare the financial statements. journalize the closing entries. A post-closing trial balance could include all of the following accounts except the:
Multiple Choice
owner’s capital account. Accounts Receivable account. Cash account. Fees Income account. All of the following accounts will appear on the post-closing trial balance except:
Multiple Choice
Depreciation Expense Capital Land Accounts Payable Which of the following entries records the closing of Penny Pincher, Drawing at the end of the accounting period?
Multiple Choice
Debit Penny Pincher, Drawing; credit Penny Pincher, Capital Debit Income Summary; credit Penny Pincher, Drawing Debit Penny Pincher, Capital; credit Penny Pincher, Drawing Debit Penny Pincher, Capital; credit Income Summary All of the following accounts will appear on the post-closing trial balance except:
Multiple Choice
Accumulated Depreciation-Equipment. Depreciation Expense-Equipment. Equipment. Accounts Payable. Which of the following accounts will not normally have a zero balance after the closing entries have been posted?
Multiple Choice
Fees Income Capital Rent Expense Income Summary Which of the following accounts has a normal credit balance?
Multiple Choice
Stark, Drawing Accounts Payable Supplies Expense Accounts Receivable Use the following account balances from the adjusted trial balance of ABC Consulting:
Account Debit Balance Credit Balance
Cash
20,500
Accounts Payable
2,000
Conway, Drawing 600 Conway, Capital
13,000
Fees Revenue
18,000
Salary Expense
Rent Expense
2,600
3,000
Supplies Expense
Advertising Expense
1,900
800
________________________________________
Select the correct closing entry that ABC Consulting would make to close the income summary account at the end of the accounting period.
Multiple Choice
debit Income Summary $9,700 and credit B. Conway, Capital for $9,700. debit B. Conway, Capital $18,000 and credit Income Summary for $18,000. debit B. Conway, Capital $9,700 and credit Income Summary for $9,700. debit B. Conway, Capital $600 credit B. Conway, Drawing for $600. Use the following account balances from the adjusted trial balance of ABC Consulting:
Account Debit Balance Credit Balance
Cash
20,500
Accounts Payable
2,000
Conway, Drawing 600 Conway, Capital
13,000
Fees Revenue
Salary Expense
Rent Expense
18,000
2,600
3,000
Supplies Expense
Advertising Expense
1,900
800
________________________________________
Select the correct closing entry that ABC Consulting would make to close their expense account(s) at the end of the accounting period.
Multiple Choice
debit B. Conway, Capital $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800. debit Income Summary $8,300 and credit B. Conway, Capital for $8,300. debit Salary Expense $2,600; debit Rent Expense $3,000; debit Supplies Expense $1,900; debit Advertising Expense $800 and credit Income Summary $8,300. debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800. The entry to close the Income Summary account may include:
Multiple Choice
a debit to Income Summary and a credit to the owner’s capital account. a debit to Income Summary and a credit to the owner’s drawing account. a debit to Cash and a credit to Income Summary. a debit to Income Summary and a credit to Cash. **********************************************