Accounting Exam 1 Questions and
Answers 100% Pass | Graded A+
How is an interest rate in Accounting used - Annually
What does credit mean? - Revenue
Do assets go up with debits or credits? - Debits
Cost of goods sold - Beginning inventory+ Total cost of merchandise
purchases-ending inventory
...
How is an interest rate in Accounting used - ✔✔Annually
What does credit mean? - ✔✔Revenue
Do assets go up with debits or credits? - ✔✔Debits
Cost of goods sold - ✔✔Beginning inventory+ Total cost of merchandise
purchases-ending inventory
Gross Profit - ✔✔net sales - cost of goods sold
Net income - ✔✔gross profit-expense
Chart of accounts - ✔✔No balance or #'s
How long is an operating cycle usually? - ✔✔A year or less
Accumulated Depreciation - ✔✔Debit
Are expenses debits or credits - ✔✔Debits
Is paying cash, debit or crediting cash - ✔✔crediting
Asset - ✔✔Cash
Asset - ✔✔Accounts receivable
,Asset - ✔✔Supplies
Asset - ✔✔Equipment
Liability - ✔✔accounts payable
liability - ✔✔unearned revenue
liability - ✔✔notes payable
equity - ✔✔common stock
equity - ✔✔dividends
equity - ✔✔revenue
equity - ✔✔expenses
equity - ✔✔retained earnings
Prepaid rent - ✔✔asset
What does credit increase? - ✔✔liabilities, equities, and revenues
Debit means left or right on t-chart? - ✔✔left of t-chart
what does debit increase? - ✔✔assets, expenses, and dividends
Which of the following is least likely to be considered a user of a business
accounting information, and instead plays a role in the independent
verification of the accuracy of a business's accounting information? -
✔✔Independent auditors
, Which of the following is considered to be a constraint in accounting? -
✔✔cost
are debts and obligations - ✔✔Liabilities
A company has assets of $2,300,000, common stock of $550,000, and
retained earnings of $1,250,000. It has liabilities of - ✔✔500,000
550,000+1,250,000=1,800,000
2,300,000-1,800,000=500,000
A company receives cash in advance from customers. This transaction will
immediately affect the - ✔✔balance sheet and cash flow statement only
Which of the following events is not recorded in a company's accounting
records? - ✔✔A decision to offer a company's services in a new geographic
area
A corporation paid dividends of $500. As a result of this event, the
corporation's - ✔✔assets and equity decreased by $500.
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