AC151_Review

Front

Account balances are always computed as: Sum of debits minus sum of credits, Sum of credits minus sum of debits, Sum of larger side minus sum of the smaller side, Sum of smaller side minus sum of the larger side

Back

Sum of larger side minus sum of the smaller side

Front

All of the following normally have debit balances except: Cash, Interest Receivable, Prepaid Expense, Accounts Payable

Back

Accounts Payable

Front

A company’s Assets is $45,000; Liabilities is $32,000; its Owner's Equity balance is:

Back

$13,000

Front

Compute Owner's Equity from the following: Owners Capital - $40,000; Owners Drawings - $12,000; Revenue - $38,000 and Expenses - $25,000

Back

$41,000

Front

Compute Net Income when: Revenue - $97,000; Expenses - $76,000; Cash - $4,000

Back

$21,000

Front

All of the following normally have credit balances except: Sales Revenue, Fee Income, Accumulated Depreciation.

Back

Prepaid Expense

Front

On the bank reconciliation statement, a ‘dishonored’ (NSF) check from a customer will appear as:

Back

Decrease to book balance

Front

On the bank reconciliation statement, a  note collected by the bank on behalf of the business will appear as:

Back

Increase to book balance

Front

What is the interest on a $40,000 note with a 3 month term with interest rate of 7%?

Back

$700

Front

If the income summary has a debit balance of $33,000 after closing all revenues and expenses, it means that:

Back

Net Loss is $33,000