Social Science Economics Finance

ACC 250 exam 1

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Terms in this set (32)

Valentine's Corporation received a $420 check from a customer for a balance due on their account. The transaction Debit Cash, $180 and Sales Revenue, $240; Credit Accounts Receivable, $420
was recorded incorrectly as a debit to Cash $240 and a credit to Sales Revenue $240. The correcting entry is

What is the correct order in preparing the 3 financial statements? First Income Statement, then Statement of Retained Earnings, then Balance Sheet

The Balance Sheet contains what 3 types of categories/accounts? Assets, liabilities, and stockholders' equity

The Income Statement contains which two categories/accounts? Revenues and expenses

Which account will have a zero balance after closing entries have been journalized and posted? Sales revenue

expenses are recognized in the period in which they are incurred,

Adjusting Entries are made to ensure that: revenues are recognized in the period in which the performance obligation is satisfied, balance sheet and income statement accounts have correct balances at the end of the
accounting period.

A company spends $10 million dollars for an office building. Over what period should the cost of this building be Over the useful life of the building
written off (expensed as depreciation expense)?

Deb Smiley has performed $500 of CPA services for a client but has not billed the client as of the end of the Debit Accounts Receivable and credit Service Revenue
accounting period. What adjusting entry must Deb make?

The Accounts Receivable account has a beginning balance of $52,000 and an ending balance of $74,000. If 20,000
$42,000 was sold on account during the year, what were the total collections on account?

The closing entry process consists of closing: All temporary accounts

Posting transfers journal entries to ledger accounts

At October 1, 2017, Padilla Industries had an accounts payable balance of $40,000. During the month, the company 25,000
made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2017, the
accounts payable balance is:

What financial statement is Unearned Service Revenue on? balance sheet

A trial balance will not balance if: A $100 cash dividends is debited to the Dividends account for $1,000 and credited to Cash for $100

Accounts that normally have debit balances are: Assets, dividends, and expenses

Debits: Increase assets and decrease liabilities

The normal balance of any account is the Side which increases that account

If a company has overdrawn its bank balance, then its cash account will show a credit balance

Which account below is NOT a subdivision of retained earnings? Revenues

Stockholders' equity is comprised of common stock and retained earnings

Three forms of business organization: Corporations, proprietorships, and partnerships

If total liabilities decreased by $90,000 and stockholders' equity increased by $30,000 during a period of time, $60,000 decrease
then total assets must change by what amount and direction during that same period?

Which financial statement is prepared first? income statement

Unearned service revenue is reported on the: balance sheet

Valentine Company began the year by issuing $120,000 of common stock for cash. The company recorded $140,000
revenues of $1,100,000, expenses of $960,000, and paid dividends of $60,000. What was Valentine's net income for
the year?

Debts and obligations of a business are referred to as liabilities

To show how successfully your business performed during a period of time, you would report its revenues and income statement
expenses in the

The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is accounts payable
termed a(n)

The accounting equation may be expressed as Assets= Liabilities + Stockholders' equity

Net income will result during a time period when: revenues exceed expenses

Which of the following financial statements is prepared as of a specific date? balance sheet

Which of the following is the BEST definition of an internal user of accounting information? Managers who use accounting information to plan, organize, and run a business