What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?
Decreased by $1,000
Decreased by $2,000
Increased by $1,000
Increased by $2,000
Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:
Owner's Equity
Expenses
Liabilities
Revenue
What is an example of an account that has a normal credit balance?
Cash
Accounts Payable - Jones Supply
Prepaid Insurance
Supplies
Advertising Expense
Accounts Receivable - Davis Company
Delivery Revenue
Samuel Johnson, Drawing
What is the effect when $200 cash is paid to an advertising agency for advertisements for the business?
Assets decrease $200 and owner's equity decreases $200.
Assets increase $200 and owner's equity increases $200.
Assets increase $200 and owner's equity decreases $200.
Liabilities increase $200 and owner's equity decreases $200.
Sales is classified as:
assets
expenses
liabilities
revenue
What is an example of an account that has a normal debit balance?
Mary Johnson, Capital
Accounts Payable - Ray's Office Equipment
Rent Expense
Sales
Office Equipment
Cash, Office Equipment, and Prepaid Insurance are all classified as:
owner's equity
What is the effect when $300 cash is paid to Accounts Payable -Bob's Office Supply?
Assets decrease $300 and owner's equity decreases $300.
Assets increase $300 and owner's equity increases $300.
Assets increase $300 and liabilities decreases $300.
Assets decrease $300 and liabilities decrease $300.
Accounts Receivable - Oakdale School
Mary Johnson - Capital
Rent, the telephone bill, and advertising costs are all classified as:
assets.
expenses.
liabilities.
revenue.
What is the effect on owner's equity when a business receives $2000 cash from sales?
Decreased by $2000
Increased by $2000
Decreased by $4,000
Increased by $4,000
Joan Brown - Drawing
Tyler Jackson - Capital
Accounts Payable - Adam's Office
In the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY CO., the source document is a/an:
Check Stub
Invoice
Memorandum
Receipt
The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry?
Debit Cash and credit Utilities Expense
Debit Cash and credit Ted Bright, Drawing
Debit Ted Bright, Drawing and credit Cash
Debit Utilities Expense and credit Cash
The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?
Debit Accounts Payable/Davis Supply Store and credit Supplies
Debit Supplies and credit Accounts Payable/Davis Supply Store
Debit Supplies and credit Supplies Expense
Debit Supplies Expense and credit Supplies
The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT, would result in which journal entry?
Debit Cash and credit Frank Harper, Capital
Debit Cash and credit Frank Harper, Drawing
Debit Frank Harper, Capital and credit Cash
Debit Frank Harper, Drawing and credit Cash
The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?
Debit Cash and credit Insurance Expense
Debit Cash and credit Prepaid Insurance
Debit Insurance Expense and credit Cash
Debit Prepaid Insurance and credit Cash
The transaction, PAID CASH FOR RENT, would result in which journal entry?
Debit Cash and credit Miscellaneous Expense
Debit Cash and credit Rent Expense
Debit Miscellaneous Expense and credit Cash
Debit Rent Expense and credit Cash
The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?
Debit Cash and debit Miscellaneous Expense
Debit Supplies and credit Miscellaneous Expense
The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry?
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
The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry?
Debit Accounts Receivable/Parker INC., and credit Cash
Debit Cash and credit Accounts Receivable/Parker, INC.
Debit Cash and credit Supplies
Debit Supplies and credit Cash
In the transaction, BILLED ANDERSON COMPANY FOR WORK COMPLETED, the source document is a/an:
check stub.
invoice.
memorandum.
receipt.
In the transaction, RECEIVED CASH FROM OWNER AS AN INVESTMENT, the source document is a/an:
calculator tape.
The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal entry?
Debit Accounts Receivable/Beth Parker and credit Cash
Debit Accounts Receivable/Beth Parker and credit Sales
Debit Cash and credit Accounts Receivable/Beth Parker
Debit Cash and credit Sales
Brian is an accountant in a local firm. He submits an accounting report to his manager that suggests an action that will ultimately benefit him monetarily. This example is a violation of which key principle for ethics in accounting?
Competence
Confidentiality
Independence
Objectivity
John has applied for a position as Chief Financial Officer for a Fortune 500 company. He listed as his qualifications that he is a problem-solver and has the ability to plan and resolve issues. This is classified as which skill?
21st Century Skills
Workplace Skills
Foundation Skills
Communication Skills
Sharon takes responsibility and initiative for her own work at Accounting Temps. This is an example of which 21st Century Skill?
Information and communication
Interpersonal
Self-direction
Thinking and problem-solving
Lisa is applying for a position in a small insurance agency. The company is looking to hire an individual that can convert their manual accounting system to a computerized system. She listed on her application that she has an accounting degree as well as an emphasis in computerized systems. This is classified as which skill?
Basic Skills
Foundations Skills
Jamie is an accountant. She knows that she is expected to produce accurate financial reports from her audit. She knows when she submits her report to her superiors her friend will suffer consequences for misappropriation of funds. Jamie submits an accurate report and follows which key principle for ethics in accounting?
Jason demonstrates accuracy and truthfulness when he works with his accounting clients. This is an example of which key principle for ethics in accounting?
Integrity
Mary has applied for a position as an accounting clerk for a local company. She listed as her qualifications that she is a problem-solver and needs little direction to complete assigned tasks. This is classified as which skill?
