1.

Which of the following are internal

Manger
2. Revenue recognition principle
3. –
4. The partnership form of business organization
Is not a taxable entity
5. Is not a advantage of the corporate form of business
The ease of formation relative
6. Which of the following variations of fundamental acc. Equation is accurate
Assets – liabilities = owner equity
7. Resouer owned or controlled
Asset
8. Creditors claims on the assets of company are called
Liabilities
9. Stockholder equity consists.
Contributed
10. Assets to stockholder
Dividend
11. Revenues
Are the assets earned from companies’ earnings activities
12. Expenses
Are the costs of assets or services used to earn revenue
13. Investment by stockholder in a business increases
Assets and stockholder equity
14. The purchase of office equipment for cash
Leaves total assets unchanged
15. Cash revenue
Increase assets and stockholder equity
16. Which financial statement is prepared first
Income statement
17. A summary of revenue and expenses for specific period of time is an
Income statement
18. 257,000 net income 51,000 dividends 40,000
268
19. Balance sheet
Reports the assets, liabilities and stockholder’s equity at a specific date
20. The statement of cash flow

1. Which following reason that source documents are important to the accounting process
The identify describes transaction
2. Which is NOT a source document
Financial statement
3. A record of increase and decrease in asset, liabilities equity etc.
Accounting
4. Not an account title used on balance sheet to describe
Owner’s equity
5. Liabilities is another term used for a company’s
Debts
6. A collection of all accounts used by a business their balance
Ledger
7. The purpose of the ledger is to
Keep in one place all information
8. List all accounts
Chart of account
9. T-account consists of
A title, a debit side, and a credit side
10. The left side of an account is
The debit side
11. The right side of an account is
The credit side
12. Double entry system requires that each transaction must be recorded
In at least two different account
13. Relationship among debits and credit and fine basic types accounts
Increase in assets and expenses are recorded in debits
14. Which accounts normally have debit balances
Assets, expenses, and dividends
15. A revenue account
Is increased with a credit
16. An expense account
Is increased with debit
17. All of the accounts have a normal balance total for the trail balance
104,800
1. Accounting on an accrual basis reports
Revenues when earned, expenses when incurred
2. –
Revenues cash received
3. An accrual occurs when cash is received or paid AFTER revenues or expenses are recognized
deferral occurs BEFORE
After , before
4. Deferred ( prepaid ) expenses are .
Assets that are created when a business pays in advance for expense before they are incurred.
5. Adjusting entry required
Debit rent expense, credit prepaid rent
6. Depreciation is the process of
 Allocating the cost of an asset to expense over its useful life in a rational and systematic manner
7. ---
8. A company that receives money in advance of performing a service
Debits cash and credits unearned fees
9. ----
10. Accrued revenues are
Revenues that are earned but not collected in cash
11. Accrued expenses are
Expense that are incurred in a period but not yet paid
12. $ 125 salaries
Credit salaries payable $125
13. $ 150 CD
Debit interest receivable $ 50 and credit interest revenue $ 50
14. Journal entries recording at the end of each accounting period
Closing entries
15. Where is common stock reported on classified balance sheet
Stockholder
16. Account receivable reported classified balance sheet
Current asset
17. Where are patents reported on classified balance sheet
Intangible assets
18. Account payable R
Current liabilities
19. Accumulated deprecation
Plant assets
20. Bonds payable
Long term liabilities