ACCT 1-2 Semester 2 Final Exam Review

How is the accounting equation most often stated?

• Assets = Liabilities - Owner's Equity

• Assets = Liabilities + Owner's Equity

• Assets + Liabilities = Owner's Equity

• Liabilities = Assets + Owner's Equity

How does an expense affect owner's equity?

• increase with a debit

• decrease with a debit

• increase with a credit

• decrease with a credit

What is the account classification when a business owes money (Accounts Payable)?

• Asset

• Liability

• Owner's Equity

• Revenue

How does revenue affect owner's equity?

• increase with a debit

• decrease with a debit

• increase with a credit

• decrease with a credit

When the owner investments cash in a business, how is the owner's capital account affected?

• increase with a debit

• decrease with a debit

• increase with a credit

• decrease with a credit

What is the journal entry when services are sold on account?

• Debit Accounts Receivable; Credit Sales

• Debit Sales; Credit Accounts Receivable

• Debit Accounts Payable; Credit Sales

• Debit Sales; Credit Accounts Payable

The procedure for transferring information from a journal entry to a ledger account is called:

• Journalizing

• Ledgering

• Posting

• Proving Cash

What is the account classification for the account number 120?

• Asset

• Liability

• Owner's Equity

• Revenue

What is it called when determining that the amount of cash agrees with the accounting records?

• Journalizing

• Posting

• Ledgering

• Proving Cash

An amount of cash kept on hand and used for making small payments is called:

• Petty Cash

• On Hand Cash

• Small Cash

• Mini Cash