Which of the following accounts impact equity? (Check all that apply.)
~Your answer is correct.
a
•
Read about this
Owner, Withdrawal
)
&
Expenses
)
a
Liabilities
&
Owner, Capital
)
Revenue
)
Assets
Challenge
The correct answer is shown.
The T- account for Cash had 3 transactions entered into it. It was increased by $400 and decreased
by $100 and by $30, respectively. Its balance at the end of the period would be a (debit/credit) Jebit
balance of $270.
~Your answer is correct.
Challenge
•
Read about this
Which statement best describes a T-account?
~ Your answer is correct.
•
Read about this
AT-account is used in a business to accurately report the financial status of its operations to the
owners.
AT-account represents a ledger account and is a tool used to understand the effects of one or
more transactions.
AT-account is a formal financial statement which reports whether debits =credits at any given
time.
AT-account is used to record transactions 1
in a chronological order and serves as a book of
original entry.
Match the item on the left with the correct definition on the right
•
~ Your answer Is correct.
You matched:
~
Raad about this
The correct match:
Creditors
a-a Individuals or organizations that have rights to
receive payments from a business
Uabilities
oa Claims against the assets of a business
~ Assets
a-a Things of value owned by a business
~
D-a
Expenses
ChalltDJt
- - - -
The costs of doing business
You are entering a transaction in the journal. Place the following steps in the order that they would be
entered in the journal.
'-'Your answer is correct.
~
:1 Enter date of transaction in date column
( o,/
2
( o,/
3 Enter name of account(s) credited and their amount(s)
8
Enter name of account(s) debited and their amount(s)
Enter explanation
Challenge
•
Read about this
Which of the following statements is (are)
true about accounts receivables? (Check all that apply.)
~Your answer is correct.
a
a
•
Read about this
Accounts receivable is increased when credit sales are made.
Accounts receivable is increased with a debit.
Accounts receivable reflects the amount of money still owed by customers.
Accounts receivable is increased when payments are received from credit customers.
Accounts receivable is a liability.
Accounts receivable is decreased when payments are received from credit customers.
Challenge
)
Which of the following is correct regarding posting a transaction?
~Your answer is correct.
a
•
Read about this
Posting means to enter transactions into a journal.
Posting means to transfer journal information to a ledger.
Posting takes place once during an accounting period.
Challenge
)
The correct answer is shown.
On Jan. 2, Callie Taylor performed $800 worth of services for a client. The client paid $100
immediately, but promised to pay the balance next month. The journal entry to record this transaction
in Callie Taylor's books would include a 0eb1'. (debit/credit) to the Cash account; a Jeo·t (debit/credit)
to the Accounts receivable account and a credi·' (debit/credit) to the Service revenue account.
~Your answer is correct.
ChaUenge
•
Read about this
Match the items on the left with their definition on the right.
•
~ Your answer is correct.
You matched:
~ Assets
f
t
~
Owner's equity
The correct match:
c-:::J Things of value owned by the business
C""'5J
ll
Revenues
Challenge
The residual interest in the assets of a business after
deducting the business's debts
c-:::J The dollars earned because of services performed or
IL
Liabilities
Read about this
products sold
c-:::J The obligations owed by the business to creditors
Select the statement below that best defines prepaid accounts.
~Your answer is correct.
•
Read about this
Prepaid accounts are assets that represent prepayments of future expenses.
Prepaid accounts are expenses and are increased with a credit.
Prepaid accounts are liabilities that are due within a specified time period.
Prepaid accounts reflect a company's cash balance and include currency, coins and money
orders.
Challenge
The correct answer is shown.
J. Brown purchased $900 of supplies on credit. Illustrate how to record the transaction to T-accounts
by completing the following sentence.
Accounts payable would be rredite- I(debited,/ credited) on the ng 1c(left/right) side of the T-account,
and Supplies would be debit6d(debited/credited) on the letL (left/right) side of the T-account.
~Your answer is correct.
Challenge
•
Read about this
Which of the following statements is (are) correct regarding the posting process? (Check all that
apply.)
~ Your answer Is correct.
The journal page is entered in the posting reference column of the journal.
Posting is only required at the end of the year.
Challenge
•
Read about this
Which of the following statements is correct in regards to debiting and crediting an account?
~Your answer is correct.
•
Read about this
Debit means to increase an account.
A debit or a credit can increase an account, depending on what kind of account it is.
Credit means to increase an account.
Credit means to decrease an account if the account is on the right side of the accounting
equation.
Challenge
The correct answer is shown.
An account is a record of increases and decrease!::> in a specific asset, liability, equity, revenue or
expense item.
~Your answer is correct.
Challenge
•
Read about this
The business earns $2,800 cash for services performed. How would this receipt affect the total
equity of a business?
~Your answer is correct.
Revenues would be decreased, so equity would be decreased.
There is no affect on total equity.
Revenues would be increased, so equity is increased.
Revenues would be decreased, so equity is increased.
Challenge
•
Read about this
The correct answer is shown.
Enter one word for each blank. The expanded accounting equation is:
assers = ltao1htiPS + owner's capital + revenues - expenses - owner's withdrawals. Do not include the
word "account(s)" in your answers.
~Your answer is correct.
Challenge
•
Read about this
When preparing a trial balance, there are certain steps that need to be followed. Place the following
steps in the correct order.
V
Your answer Is correct.
F1
~
List each account title and its amount from the general ledger.
2 Compute the total of debit balances and the total of credit balances.
8
Verify that total debit balances equal total credit balances.
~
Locate and resolve errors.
Challenge
M
Read about this
Match the definition on the left with the term/item on the right.
V' Your answer is correct
Your answers:
It is a collection of all accounts with their activity and
balances that exist in a business.
c-:J
V' A journal
It is a book of original entry that includes a
chronological record of all transactions that have
V' A general ledger
c-:J
occurred within a business during a period occurred
It is a list of each account and its balance at any given c-:J V' A trial balance
time and is used to verify that debits = credits
It is a list of all ledger accounts which exist in a
business and includes an identification number
assigned to each account
i~@i!.i!JM
V' A chart of accounts
c-:J
l
l
The correct answer is shown.
After entering a transaction into the accounting equation, an increase in total assets can be
accompanied by a(n) (increase/ decrease)
~Your answer is correct.
Challenge
icreas~
in total liabilities and (equity/ assets)Pqu y.
•
Read about this
Which of the following accounts are examples of expenses? (Check all that apply.)
~Your answer is correct.
a
Rent expense
•
Read about this
]
Withdrawals
a
Accounts payable
Supplies expense
Challenge
]
S. Sunshine received and paid for a utility bill of $50. Show how to record this transaction to the Taccounts by selecting the correct answer below.
~Your answer is correct.
•
Read about this
'
$50 on the left side of the Utility expense account; $50 on the left side of the Cash account.
a
$50 on the right side of the Utility expense account; $50 on the right side of the Cash account.
$50 on left side of the Utility expense account ; $50 on the right side of the Cash account.
$50 on the left side of the Cash account; $50 on the right side of the Utilities expense account.
Challenge
j
Which of the following statements is (are)
correct regarding the Owner, Capital account? (Check all
that apply.)
~ Your answer is correct.
a
The Owner, Capital account is an equity account.
The Owner, Capital account is used to record investments by the owner.
The Owner, Capital account is used to record purchases of assets.
The Owner, Capital account is increased on the left side of the T-account.
The Owner, Capital account is increased on the right side of the T-account.
Challenge
•
Read about this
Which of the following describes a general ledger?
~Your answer is correct.
•
Read about this
The general ledger describes all liability accounts.
a
The general ledger combines sales and expenses to determine the net income of a business.
The general ledger is a record containing all accounts used by a company.
The general ledger is a record of all transactions in alphabetical order.
Challenge
)
The correct answer is shown.
Supplies are
~ssets
(assets/expenses/liabilities) until they are used. When they are used up, their
costs are reported as expenses (assets/expenses/liabilities).
I
~Your answer is correct.
Challenge
•
Read about this
Choose the account(s) below, that would have a normal credit balance.
~ Your answer is correct.
a
•
Read about this
owner's withdrawals
unearned revenues
expenses,
i f l l revenues
a
a
accounts payable
owner's capital
Challenge
]
Which of the following statements is correct regarding the effect of debits and credits in accounts?
~Your answer is correct.
•
Read about this
Assets are on the left side of the accounting equation, so to increase them, you would credit
them.
Revenues increase equity, so to increase a revenue account, you would debit it.
Investments cause Owner, Capital to increase, so to increase the capital account. you would debit
it.
Expenses reduce equity, so to increase an expense account you would debit it.
Challenge
The correct answer is shown.
J. Brown withdrew $40 from the business's checking account for personal use. Show how to record
the transaction to the T-accounts by completing the following sentence.
Owner, Withdrawals would be debited(debited/credited) on the er1(left/right) side of the T-account,
and Cash would be credited(debited/credited) on the ng1
~ Your answer is correct.
Challenge
(left/right) side of the T-account.
•
Read about this
The correct answer is shown.
The owner of a business withdrew $40 from the business's checking account for personal use. Show
how to record the transaction to the T-accounts by completing the following sentence.
Owner, Withdrawals would be debite (debited/ credited) on the e (left/right) side of the T-account.
and Cash would be c;redited(debited/ credited) on the r"gh (left/right) side of the T-account.
~Your answer is correct.
•
Read about this
A business pays $500 for rent. How would this payment affect the equity of a business?
~Your answer is correct.
a
•
Read about this
Expenses are decreased, so equity is decreased.
Expenses are increased, so equity is decreased.
Expenses are increased, so total equity is increased.
Challenge
)
Choose the statement below that correctly explains a general journal..
VYour answer is correct.
•
Read about this
A journal is a record of all of the accounts that exist in a business and includes their identifying
account number.
A journal is a list of accounts and their balances at any given moment.
A journal is a complete record of each transaction in one place and includes the debit and credit
of each transaction.
A journal is a record keeping device that is used to monitor customer account balances.
Challenge
Which of the following statements is correcf?
~Your answer is correct.
a
•
Read about this
Debiting means to increase a liability account.
Debiting means to enter transactions on the left side of a T-account.
Debiting means to enter transactions in a book of original entry in chronological order.
Debiting means to enter transactions on the right side of a T-account.
Challenge
]
Which of the following would be included on a statement of owner's equity? (Check all that apply.)
~ Your answer is correct.
n
n
Total revenues
Capital balance at end of period
Total assets
Capital balance at beginning of period
Total liabilities
lfl
lfl
n
Net income (loss)
Owner withdrawa l's
Owner investments
Challenge
•
Read about this
Which of the following accounts has a normal debit balance? (Check all that apply.)
~Your answer Is correct.
•
Read about this
lfl~c_
as_h_____________________________________________________
Accounts payable
l f l Buildings
l f l Accounts receivable
Unearned revenue
l f l Supplies
Challenge
The correct answer is shown.
Since expenses are the costs of doing business and cause equity to oecreasP (increase/decrease),
expenses are increased on the lef (right/left) side of their T-account.
~Your answer is correct.
Challenge
•
Read about this
Jeff, the owner of a business, invests an additional $100 into his business from his personal
checking account. How would this affect the equity of his business?
~Your answer Is correct.
Owner, Capital would be increased and total equity would also increase.
Owner, Capital would be decreased and equity would be decreased.
Owner, Capital would be increased and total equity would decrease.
Owner, Capital would be decreased and total equity would increase.
Challenge
•
Read about this
When entering transactions into accounts, the rules of double-entry accounting must be followed.
These rules include: (Check all that apply.)
~Your answer is correct.
a
•
Read about this
the total amount debited must equal the total amount credited.
The total number of accounts debited must equal the total number of accounts credited.
The accounting equation must remain in balance.
There must be at least one credit and one debit.
Challenge
]
The correct answer is shown.
When financial statements are prepared, unexpired prepaid accounts are recorded as assets
(expenses/assets/liabilities) and the expired portion of the prepaid account is reported as a(n)
expense (expense/asset/liability).
'-'Your answer is correct.
Challenge
•
Read about this
The correct answer is shown.
The Notes payable account is a(n) ·ability (asseVliability/expense) account and is increased on the
rignL (left/right) side of the T-account.
~Your answer is correct.
Challenge
•
Read about this
Which of the following statements best explains the posting reference in a journal and a ledger?
~Your answer is correct.
•
Read about this
The posting reference is entered when journalizing a transaction, so there is no need for it in the
ledger.
The posting reference creates a link between the journal and the ledger.
The posting reference depicts the initials of the person journalizing and posting.
A posting reference includes a detailed explanation of the transaction.
Challenge
Which of the following statements is accurate regarding the Building account?
~Your answer is correct.
•
Read about this
A Building asset account is used to record the costs of purchasing a store, office, warehouse or
factory.
Building costs are treated as expenses in the period they are incurred and reported on the
income statement.
A Building expense account is used to record the costs of purchasing a store, office, warehouse
or factory.
A Building account is increased on the right side of a T-account because it is an asset.
Challenge
The balance sheet reports:
~Your answer is correct.
a
assets, liabilities and the ending capital balance
the revenues less the expenses incurred by a business
how cash was received and spent during a period
how equity changed over a period of time
Challenge
•
Read about this
)
Which of the following financial statements reports the financial position of a business at a point in
time?
~Your answer Is correct.
a
•
Read about this
Income statement
Balance sheet
Statement of cash flows
Statement of owner's equity
Challenge
)
Analyzing the accounting equation at the end of the month will reveal the following. Select all that
apply.
._,,Your answer is correct.
a
assets= liabilities+ equity
assets and liabilities will be reported on the income statement
revenues and expenses will change the equity account
increases and decreases in cash will be reported on the balance sheet
Challenge
•
Read about this
]
Describe where dollar signs are appropriate in financial statements.
~Your answer is correct.
a
•
Read about this
Dollar signs are used besides every number in a column.
Dollar signs are used beside the first and last numbers in a column.
Dollar signs are not used in financial statements.
Challenge
)
Which of the following lists of items contain only examples of prepaid (expense) accounts?
~Your answer is correct.
•
Read about this
Prepaid rent, prepaid land
a
Prepaid insurance, unearned revenue, prepaid accounts payable
Prepaid rent, prepaid insurance
Prepaid insurance, prepaid accounts receivable, prepaid land
Challenge
]
Which of the following is the best definition of a source document in the accounting process?
~Your answer is correct.
•
Read about this
A source document identifies and describes transactions and is the basis for the accounting
information which is entered in an accounting system.
A source document shows all the information about the legal rights a company has in relation to
when it should pay a bill.
A source document is used to determine who hired an employee that is assigned the duty of
entering transactions into the accounting process.
Challenge
Which of the statements below is true regarding the statement of owner's equity?
~Your answer is correct.
Total expenses are reported on the statement.
a
Ending total assets is reported on the statement.
Both the beginning and ending Capital balances are reported on the statement.
Only the beginning Capital balance is reported on the statement.
Only the ending Capital balance is reported on the statement.
Challenge
•
Read about this
Identify which of the following formulas correctly defines how to calculate the debt ratio.
~Your answer is correct.
•
Read about this
Total liabllitiesjTotal equity
Total assets/Total liabilities
a
Total assets/Net income
Total liabilities/Total assets
Challenge
)
The accounting process serves which of the following purposes in a business? (Check all that apply.)
~ Your answer is correct.
a
a
a
a
Identifies business transactions
Presents information in business reports
Summarizes business transactions
Analyzes and records business activities
Identifies employees to be fired
Determines management's responsibilities
Cballenge
M
Read about this
Given the following information for Jackson's Boots, calculate its Debt Ratio for the current year.
$ in Thousands 20X2
$250
Total assets
Total liabilities $100
Total equity
$150
'-'Your answer is correct.
•
Read about this
______________________________________________
lfl~·4_o
2.50
.66
Challenge
--J
Review each of the following statements to determine which is
correct regarding the importance of
assessing a company's risk of paying debt. (Check all that apply.)
~ Your answer is correct.
•
Read about this
A company that finances their assets by borrowing will need to make enough money to pay off th
debt.
Assessing a company's risk of paying off debt is not required when the company is highly
leveraged.
A company's required debt payments may be greater than its ability to generate money to make
those payments.
Challenge
Which of the following financial statements report(s) the financial position of a business over a period
of time? (Check all that apply.)
~Your answer is correct.
a
a
a
•
Read about this
Statement of cash flows
)
Statement of owner's equity
)
Balance sheet
Income statement
Challenge
)
Which of the following statements explains the difference between a Balance column account and a
T-account?
~ Your answer is correct.
•
Read about this
T-accounts show both the debit and credit side of a transaction, while t he Balance column
accounts show only the debit or the credit to t he account.
Balance column accounts are a less formal way of recording a transaction, while T-accounts are
used in actual business practice.
T-accounts are a simple way to visualize t he effect of a tra nsaction; however, Balance column
accounts are used in actual accounting systems.
Balance column accounts ref lect year-end balances, but T-accounts reflect the current balance at
any point in time.
Challenge
An annual insurance policy is paid in advance by a company. How will the company treat this initial
payment and the subsequent expiration of a portion of the policy over time? (Check all that apply.)
~ Your answer is correct.
•
Read about this
Over time, the expired portion of the policy must be removed from the asset account as it has
This prepayment of the policy will initially be treated as an expense and over time, the expired
portion will be treated as an asset.
As a portion of the policy expires, the expired portion will be removed and transferred to an
expense account.
Challenge
Which of the following statements is correct about prepaid expenses?
~Your answer is correct.
•
Read about this
Prepaid expenses are another name for accounts receivable and are reported as an asset.
a
Prepaid expenses are also called prepaid liabilities and are classified as liabilities.
Prepaid expenses are also called prepaid accounts and are considered assets.
Prepaid expenses are current expense accounts and are reported on the income statement.
Challenge
]
Which of the following would be considered a source document in an accounting system? (Check all
that apply.)
~ Your answer is correct.
•
Read about this
]
Challenge
True or false: The differences between U.S. GAAP and IFRS will increase over time as they work
towards a common conceptual framework.
~Your answer is correct.
l f l False
True
Challenge
•
Read about this
]
True or false: The revenue recognition principle states that revenue should be recorded in the period
in which it is earned which may or may not be the period in which payment was actually received.
~Your answer is correct.
•
Read about this
lfl~T_
ru_
e ________________________________________________)
False
Challenge
Name the accounting document or report that is completed just prior to preparing financial
statements and assists in preparing the financial statements.
~Your answer is correct.
•
Read about this
T-account
General ledger
a
General journal
Trial balance
Challenge
]
Which of the following statements is (are) correct regarding unearned revenues? (Check all that
apply.)
~ Your answer is correct.
•
Read about this
Unearned revenues refer to assets which have yet to be billed to customers for services
performed by the business.
Unearned revenues are amounts owed by customers for services performed.
Unearned revenues refer to a liability that is settled when a company delivers a product or
performs a service.
Unearned revenue is a liability account which is set up when a customer pays in advance for a
product or service.
Challenge
In defining an accounting period, which of the following statements is (are) correct? (Check all that
apply.)
~Your answer is correct.
An accounting period can be one month, one quarter or one year.
An accounting period refers to each day in the calendar year.
An accounting period is used to determine the due date of payables.
a
A one-year reporting period is known as the fiscal year.
An accounting period is determined by the business.
Challenge
•
Read about this
Which of the following statements is (are) correct regarding the Balance column in a ledger (or
Balance column account)? (Check all that apply.)
~ Your answer is correct.
l!!J
Read about this
It is not necessary to calculate the new balance of the account until the end of the period before financial statements are prepared.
Immediately after posting a transaction, the balance of the account is written in the Balance
column.
The amount of the debit or credit to the aocou nt is also entered in the Balance column of the
ledger.
lfi A zero balance for an account is usually shown by writing zeros or a dash in the balance column.
Challenge
J. Jackson invested $1,000 in his business. Show how to use T-accounts to record this transaction by
selecting the correct answer below.
~Your answer Is correct.
•
Read about this
Credit Cash; debit Owner, Capital.
Debit Cash; credit Revenue.
a
Debit Investments; credit Cash.
Debit Cash; credit Owner, Capital.
Challenge
]
Which of the following statements is (are)
correct regarding the sides of a T-account? (Check all that
apply.)
~ Your answer is correct.
if! The right side is called the credit side.
Liability accounts will be increased on the left side.
I f ! Asset accounts will be increased on the left side.
if! Liability accounts will be increased on the right side.
if! The left side is called the debit side.
The left side is called the credit side.
Asset accounts will be increased on the right side.
Challenge
M
Read about this
The correct answer is shown.
Equipment is a(n) asse (asseVliability/expense) account. It is reported on the lef (left/right) side of
the accounting equation and is i 1creasElr(increased/decreased) when equipment is purchased.
~Your answer is correct.
Challenge
•
Read about this
On Nov.1, L. Lyons pays $2,400 cash for supplies. Show how to use T-accounts to record this
transaction by selecting the correct answer below.
Y'Your answer is correct.
•
Read about this
Cash would be debited, and Supplies would be credited
Supplies expense would be credited; Cash would be debited.
a
Supplies would be credited; Cash would be credited.
Supplies would be debited, and Cash would be credited.
Challenge
]
Which of the following accounts would be considered an asset? (Check all that apply.)
V
Your answer is correct .
&
supplies
&
Building
•
Read about this
Accounts payable
a
Owner's capital
Accounts receivable
·~c_a_
sh___________________________________________________________
Challenge
The correct answer is shown.
Notes receivable is considered a(n) asset (asset/liability) and is increased on the eft (left/right) side
of a T-account when received.
~Your answer is correct.
Challenge
•
Read about this
Recall the required information in a financial statement heading. Rearrange the following line items
as they would appear in a heading.
~Your answer Is correct.
~ Name of business
~ Name of financial statement
~ Period of time the financial statement covers
Challenge
•
Read about this
The correct answer is shown.
Accounts payable refer to obligations owed y (by/to) the business and are classified as a(n) rability
(asset/liability/expense) account.
~Your answer is correct.
Challenge
•
Read about this
On Mar 3, L. Lyons received $100 cash in advance of providing catering services to a customer. Use
your knowledge of what a correct journal entry should look like to identify what would be included in
the correctjournal entry
~ Your answer is correct.
Unearned Revenue would be debited and listed first
Unearned Revenue would be credited and listed second
Accounts Receivable would be debited and listed first
Cash would be credited and listed second
BfaCash would be debited and listed first
Challenge
•
Read about this
S. Gunner purchased a piece of equipment costing $6,000. She paid $1,000 immediately and put
the rest on account. Show how to record this transaction to the T-accounts by selecting the correct
answer below.
~ Your answer is correct.
•
Read about this
$6,000 on left side of the Equipment account; $5,000 on the right side of the Accounts payable
account; $1,000 on the right side of the Cash account.
$6,000 on the left side of the Equipment account; $6,000 on the right side of the Accounts
payable account.
$6,000 on the left side of the Equipment account; $6,000 on the right side of the Cash account.
$6,000 on the right side of Equipment; $5,000 on the left side of Accounts payable; $1,000 on
the right side of the Cash account.
Challenge
When Myrtle withdraws $50 from the business for personal use, how would this affect the equity of a
business?
"
Your answer is correct.
Assets are increased and equity is decreased.
a
Equity is increased and assets are increased.
Assets are decreased and equity is decreased.
Assets are decreased and liabilities are decreased.
Challenge
•
Read about this
Which of the following statements is the best definition of an asset?
~Your answer is correct.
a
•
Assets are resources owned by a company and that have expected future benefits.
Assets represent the owner's claims against a company.
Assets are the distributions to the owners of a company.
Assets are claims against the company.
Challenge
Read about this
Which of the following items would be considered "cash" and reflected in a company's Cash account?
(Check all that apply.)
~Your answer is correct.
a
Money orders
M
Read about this
)
t i checks
Notes Receivable
lfl~c_o_
in________________________________________________________
Prepaid Insurance
Challenge
The correct answer Is shown.
Holt Computer Services received $200 from a customer that it had billed earlier in the month.
Illustrate how to record the transaction to the T-accounts by completing the following sentence.
Accounts receivable would be credited(debited/ credited) on the r"gh (left/right) side of the T-account,
and Cash would be debited(debited/ credited) on the left (left/right) side of the T-account.
" ' Your answer is correct.
Challenge
•
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The correct answer is shown.
R&R Programming pays a $900 supply bill that it had received earlier in the month. Illustrate how to
record the transaction to the T-accounts by completing the following sentence.
Accounts payable would be
debih~<
(debited/credited) on the IP t(left/right) side of the T-account, and
Cash would be c ·ea1te I(debited/credited) on the
~Your answer is correct.
Challenge
1gh~
(left/right) side of the T-account.
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Which of the following statements is (are) correct regarding the definition of a liability? (Check all that
apply.)
~Your answer is correct.
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A liability is an asset waiting to be received by a business.
A liability is a thing of value owned by the business and is increased on the left side of a Taccount.
Challenge
Which of the selections below includes all of the required information to be entered in a journal?
~Your answer is correct.
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Debited and credited accounts, dates and explanation of transaction, initials of person entering
transaction
Initials of person entering the transaction, debited accounts, dollar amounts of debits and date of
transaction
Date of transaction, explanation of transaction, debited and credited accounts, dollar amounts of
debits and credits
Challenge
Illustrate how the financial statements are linked by placing them in the correct order of preparation.
~Your answer is correct.
~
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1 Income statement
E2
Statement of owner's equity
[
~
3
Balance sheet - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Challenge
The correct answer is shown.
J. Brown provided services to a customer and immediately collected $1,900 cash. Show how to
record the transaction to the T-accounts by completing the following sentence.
Service Revenue would be redit&rl(debited/credited) on the , ,g· (left,/right) side of the T-account,
and Cash would be debit&d(debited/credited) on the
~ Your answer is correct.
ChaHenge
1~rt
(left/right) side of the T-account.
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Which of the following statements is accurate about the Land account? (Check all that apply.)
~Your answer is correct.
a
The Land account is an asset.
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]
The Land account is an expense account.
The Land account would be increased on the left side of its T-account.
a
The Land account records the costs of purchasing an office, warehouse or store.
The Land account is used to record the costs of land purchased by the business.
Challenge
)
Which of the following statements about revenues is correct?
~Your answer is correct.
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Revenues cause equity to increase, and they are increased on the left side of the T-account.
Revenues cause equity to increase, and they are increased on the right side of the T-account.
Revenues cause equity to decrease, and they are increased on the right side of their T-account.
Revenues cause equity to increase, and they are reported on the left side of the accounting
equation.
Challenge
From the lists of accounts below, which one contains only revenue accounts?
~Your answer is correct.
Accounts payable, Interest revenue, Commissions earned
Sales, Rent revenue, Accounts receivable
Interest revenue, Professional fees earned, Sales
Accounts receivable, Service revenue, Professional fees earned
Challenge
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Which of the following would be included on an income statement? (Check all that apply.)
~ Your answer is correct.
a
a
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Total expenses
Total equity
Total revenues
Total liabilities
&
M
Netincome
Tota I assets
Challenge
]
Which of the following statements is (are) correct? (Check all that apply.)
~Your answer is correct.
a
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Crediting a liability account will increase it.
Crediting the Owner, Capital account means to increase it.
Crediting means to enter transactions on the right side of a T-account.
a
Crediting means to enter transactions on the left side of a T--account.
Crediting can be abbreviated "Cr2".
Challenge
)
The correct answer is shown.
The Owner, Withdrawal account is used to record withdrawals
(investments/withdrawals/expenses/revenues) by the owner and has a 1egative (positive/negative)
impact on equity.
~Your answer is correct.
Challenge
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The correct answer is shown.
A trial balance is a(n) (lisVbalance/chart)
SL
of accounts and their balances at a point in time and is
used to confirm that the sum of debit account balances equals the sum of c ed ~ account balances.
Use one word for each blank.
~Your answer is correct.
Challenge
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