Acct 284 Worksheet
1.List 6 T-account:
(Which 3 accounts increase with debit?)
2. 4 characteristics for Journal Entry
3. Definition of Current Ration
(eg, Pepsi is 1.77 and Coke is 2.5. Which company is better?)
4. Razor Corporation collected $500 due from a customer for a prior
purchase. The journal entry to record this transaction is:
Debit
Credit
A)
Accounts Receivable
$500
Cash
500
B)
Sales Revenue
Accounts Payable
$500
C)
Cash
Accounts Payable
$500
D)
Cash
Accounts Receivable
$500
500
500
500
5. Which of the accounts increases with a CREDIT?
A)
Dividends
B)
Cash
C)
Cost of goods sold
D)
Accounts payable
6. Issuing common stock for cash would
A)
increase assets and increase stockholders' equity.
B)
decrease income and assets.
C)
decrease assets and decrease liabilities.
D)
increase assets and increase liabilities.
7. Jordan Tools reported a current ratio of 1.65 for the current year while
their competitor Air Tools reported a current ratio of 1.42. Which of the
following statements is TRUE?
A)
Jordan Tools current ratio indicates that it is more liquid than
Air Tools.
B)
Jordan Tools may have a harder time having cash available for
current obligations than Air Tools.
C)
Jordan Tools has fewer current assets for each dollar of current
liabilities relative to Air Tools.
D)
Jordan Tools appears to be less profitable than Air Tools.
8. A sale to a customer made on account would:
A)
increase assets, increase revenues, and decrease stockholders'
equity.
B)
increase assets, decrease liabilities, and increase net income.
C)
decrease assets, increase net income, and increase
stockholders’ equity.
D)
increase assets, increase revenues, and increase stockholders'
equity.
9. Which of the following would NOT result from the payment for
utilities for the current month?
A)
expenses would increase
B)
net income would increase
C)
assets would decrease
D)
stockholders’ equity would decrease