Accounting 1.01 VoCats
Review PowerPoint
What is the effect on assets when the
owner increases owner's equity by
investing $1,000 in the business?
A. Decreased by $1,000
B. Decreased by $2,000
C. Increased by $1,000
D. Increased by $2,000
ANSWER: C
What is the effect on assets when the owner increases
owner's equity by investing $1,000 in the business?
(CASH $$)
What is the effect on owner's equity
when a business receives $2000 cash
from sales?
A. Decreased by $2000
B. Increased by $2000
C. Decreased by $4,000
D. Increased by $4,000
ANSWER: B
What is the effect on owner's equity when
a business receives $2000 cash from sales?
REVENUE
(CASH $$)
What is the effect when $200 cash is
paid to an advertising agency for
advertisements for the business?
A. Assets decrease $200 and owner's equity
decreases $200.
B. Assets increase $200 and owner's equity
increases $200.
C. Assets increase $200 and owner's equity
decreases $200.
D. Liabilities increase $200 and owner's
equity decreases $200.
ANSWER: A
What is the effect when $200 cash is paid to an
advertising agency for advertisements for the business?
(CASH $$)
Advertising Exp.
What is the effect when $300 cash is
paid to Accounts Payable/Bob's Office
Supply?
A. Assets decrease $300 and owner's equity
decreases $300.
B. Assets increase $300 and owner's equity
increases $300.
C. Assets increase $300 and liabilities decreases
$300.
D. Assets decrease $300 and liabilities decrease
$300.
ANSWER: D
What is the effect when $300 cash is paid to Accounts
Payable/Bob's Office Supply?
(CASH $$)
Acts Pay.
What is an example of an account
that has a normal credit balance?
A. Cash
B. Accounts Payable/Jones Supply
C. Prepaid Insurance
D. Supplies
ANSWER: B
What is an example of an account
that has a normal credit balance?
A. Cash
B. Office Equipment
C. Sales
D. Supplies
ANSWER: C
What is an example of an account
that has a normal credit balance?
A. Cash
B. Joan Brown, Drawing
C. Supplies
D. Tyler Jackson, Capital
ANSWER: D
What is an example of an account
that has a normal debit balance?
A. Mary Johnson, Capital
B. Accounts Payable/Ray's Office
Equipment
C. Rent Expense
D. Sales
ANSWER: C
What is an example of an account
that has a normal debit balance?
A. Accounts Payable/Adam's Office
Supply
B. Advertising Expense
C. Mary Johnson, Capital
D. Sales
ANSWER: B
What is an example of an account
that has a normal debit balance?
A.
B.
C.
D.
Accounts Receivable/Oakdale School
Accounts Payable/Jones Supply
Mary Johnson, Capital
Sales
ANSWER: A
What is an example of an account
that has a normal credit balance?
A.
B.
C.
D.
Advertising Expense
Accounts Receivable/Davis Company
Delivery Revenue
Samuel Johnson, Drawing
ANSWER: C
Cash, Office Equipment, and Prepaid
Insurance are all classified as:
A. assets
B. liabilities
C. owner's equity
D. Revenue
ANSWER: A
Rent, the telephone bill, and
advertising costs are all classified as:
A. assets
B. expenses
C. liabilities
D. Revenue
ANSWER: B
“Sales” is classified as:
A. assets
B. expenses
C. liabilities
D. Revenue
ANSWER: D
Mariah Smith, Capital and Mariah
Smith, Drawing are both classified as:
A. owner's equity
B. expenses
C. liabilities
D. Revenue
ANSWER: A
Accounting 1.02 VoCats
Test Review
In the transaction, BILLED ANDERSON
COMPANY FOR WORK COMPLETED, the
source document is a/an:
A. Check Stub
B. Invoice
C. Memorandum
D. Receipt
E. ANSWER: B
In the transaction, BOUGHT SUPPLIES
ON ACCOUNT FROM DIXON SUPPLY
CO., the source document is a/an:
A. Check Stub
B. Invoice
C. Memorandum
D. Receipt
E. ANSWER: B
In the transaction, RECEIVED CASH
FROM OWNER AS AN INVESTMENT, the
source document is a/an:
A. Calculator Tape
B. Check Stub
C. Invoice
D. Receipt
E. ANSWER: D
The transaction, PAID CASH FOR
MISCELLANEOUS EXPENSE, $400,
would result in which journal entry?
A.
B.
C.
D.
Debit Cash and credit Miscellaneous Expense
Debit Cash and debit Miscellaneous Expense
Debit Miscellaneous Expense and credit Cash
Debit Supplies and credit Miscellaneous
Expense
ANSWER: C
The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE,
$400, would result in which journal entry?
(CASH $$)
CREDIT
Misc. Exp.
DEBIT
The transaction, SOLD SERVICES ON
ACCOUNT TO BETH PARKER, would
result in which journal entry?
A. Debit Accounts Receivable/Beth
Parker and credit Cash
B. Debit Accounts Receivable/Beth
Parker and credit Sales
C. Debit Cash and credit Accounts
Receivable/Beth Parker
D. Debit Cash and credit Sales
ANSWER: B
The transaction, SOLD SERVICES ON ACCOUNT TO
BETH PARKER, would result in which journal entry?
(Accounts
Receivable/
Beth Parker)
DEBIT
REVENUE
CREDIT
The transaction, PAID CASH FOR
ELECTRIC BILL (UTILITIES EXPENSE)
would result in which journal entry?
A. Debit Cash and credit Utilities Expense
B. Debit Cash and credit Ted Bright,
Drawing
C. Debit Ted Bright, Drawing and credit
Cash
D. Debit Utilities Expense and credit Cash
ANSWER: D
The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES
EXPENSE) would result in which journal entry?
(CASH $$)
CREDIT
Utilities Exp.
DEBIT
The transaction, PAID CASH FOR RENT,
would result in which journal entry?
A. Debit Cash and credit Miscellaneous
Expense
B. Debit Cash and credit Rent Expense
C. Debit Miscellaneous Expense and
credit Cash
D. Debit Rent Expense and credit Cash
ANSWER: D
The transaction, PAID CASH FOR RENT,
would result in which journal entry?
(CASH $$)
CREDIT
Rent Exp.
DEBIT
The transaction, PAID CASH FOR
INSURANCE, would result in which
journal entry?
A. Debit Cash and credit Insurance Expense
B. Debit Cash and credit Prepaid Insurance
C. Debit Insurance Expense and credit Cash
D. Debit Prepaid Insurance and credit Cash
ANSWER: D
The transaction, PAID CASH FOR INSURANCE,
would result in which journal entry?
(CASH $$)
CREDIT
Prepaid
Insurance
DEBIT
The transaction, BOUGHT SUPPLIES
ON ACCOUNT FROM DAVIS SUPPLY
STORE, would result in which journal
entry?
A. Debit Accounts Payable/Davis Supply
Store and credit Supplies
B. Debit Supplies and credit Accounts
Payable/Davis Supply Store
C. Debit Supplies and credit Supplies Expense
D. Debit Supplies Expense and credit Supplies
ANSWER: B
The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM
DAVIS SUPPLY STORE, would result in which journal entry?
(Supplies)
DEBIT
Acts Pay.
CREDIT
The transaction, RECEIVED A CHECK
FOR $2500 FOR LEGAL FEES, would
result in which journal entry?
A.
B.
C.
D.
Debit Cash and credit Legal Expenses
Debit Cash and credit Legal Fees
Debit Legal Fees and credit Cash
Debit Miscellaneous Expense and
credit Legal Fees
ANSWER: B
The transaction, RECEIVED A CHECK FOR $2500 FOR
LEGAL FEES, would result in which journal entry?
(CASH $$)
DEBIT
REVENUE
CREDIT
The transaction, RECEIVED CHECK
FROM FRANK HARPER, OWNER, AS AN
INVESTMENT, would result in which
journal entry?
A. Debit Cash and credit Frank Harper, Capital
B. Debit Cash and credit Frank Harper, Drawing
C. Debit Frank Harper, Capital and credit Cash
D. Debit Frank Harper, Drawing and credit Cash
ANSWER: A
The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER,
AS AN INVESTMENT, would result in which journal entry?
(CASH $$)
DEBIT
CREDIT
The transaction, RECEIVED CHECK
FROM PARKER, INC., IN PAYMENT ON
ITS ACCOUNT, would result in which
journal entry?
A. Debit Accounts Receivable/Parker
INC., and credit Cash
B. Debit Cash and credit Accounts
Receivable/Parker, INC.
C. Debit Cash and credit Supplies
D. Debit Supplies and credit Cash
ANSWER: B
The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT
ON ITS ACCOUNT, would result in which journal entry?
(CASH $$)
DEBIT
Accounts Rec.
CREDIT
1.03 Key Principles for Ethics in
Accounting Review
Guess the right
principle
Key Principles for Ethics in
Accounting
•
•
•
•
•
Integrity
Objectivity
Independence
Competence
Confidentiality
44
Accountants must choose
between right and wrong
Integrity
Accountants must be
impartial, honest and free of
personal conflict
Objectivity
Accountants should be
knowledgeable in their
profession.
Competence
Accountants are responsible
for entering correct entries.
Integrity
Accountants must not share
private information regarding
their clients.
Confidentiality
Accountants do not have an
interest or profit financially
from the companies they
audit.
Independence
Accountants must not be
influenced by personal
interests.
Objectivity
Accountants are expected to
protect personal and private
information regarding their
clients.
Confidentiality
Accountants must have the
skills necessary to perform
their jobs.
Competence
Accountants are responsible
for true and correct financial
statements.
Integrity
Accountants must have
experience in their field.
Competence
This is necessary for
accountants to build trust in
regards to their professional
judgments
Integrity
An accountant should not use
information learned for
personal gain.
Confidentiality
Accountants must have the
public’s confidence in their
professional services.
Independence
Accountants should behave in
a way that does not suggest
inappropriateness.
Objectivity

60
Integrity
• Accountants must choose between right
and wrong.
• Accountants are responsible for entering
correct entries.
• Accountants are responsible for true and
correct financial statements.
• Integrity is necessary for accountants to
build trust in regards to their professional
judgments.
Objective 1.03 Understanding Ethics
61
Objectivity
• Accountants must be:
– Impartial
– Honest
– Free of personal conflicts
• Accountants must not be influenced by
personal interests.
• Accountants should behave in a way that
does not suggest inappropriateness.
Objective 1.03 Understanding Ethics
62
Independence
• Accountants do not have an interest or
profit financially from the companies they
audit.
• Accountants must have the public’s
confidence in their professional services.
Objective 1.03 Understanding Ethics
63
Competence
• Accountants should be knowledgeable in
their profession.
• Accountants must have the skills
necessary to perform their jobs.
• Accountants must have experience in their
field.
• Accountants are expected to keep abreast
of current laws by continuing education
classes.
Objective 1.03 Understanding Ethics
64
Confidentiality
• Accountants must not share private
information regarding their clients.
• Accountants are expected to protect
personal and private information regarding
their clients.
• An accountant should not use information
learned for personal gain.
Objective 1.03 Understanding Ethics
65