FINANCIAL ACCOUNTUNG

The Three steps in the accounting process are identification, recording, and communicarion

• True

• False

Bookkeeping encompasses all steps in the accounting process

• True

• False

Accountants prepare, but do not interpret, financial reports

• True

• False

The two most common types of external users are investors and company officers

• True

• False

Managerial accounting activities focus on reports for internal users

• True

• False

During 2019, Bruske Company's asset decreased $50.000 and its liabilities decreased $50.000. Its owner's equity therefore

• A. Increased $50.000

• B.Decreased $50.000

• C. Decreased $100.000

• D. Did not change

Net Income will result during a time period when

• Asset exceed liabilities

• Asset exceed revenue

• Expenses exceed revenue

• Revenue exceed expenses

The trial balance of Jeong Company had accounts with the following normal balances : Cash $5.000, Services Renenue $85.000, Salaries & Wages Expenses $40.000, Rent Expenses $10.000, Owner's Capital $42.000, Owners Drawings $15.000, and Equipment $61.000. In preparing a trial balance, the total in debet coloumn is :

• $131.000

• $216.000

• $91.000

• $116.000

The trial balances shows supplies $0 and supplies expenses $1.500. If $800 of supplies are on hand at the end of period, the adjusting entry is :

• Debit supplies $800 and credit supplies expenses $800

• Debit supplies expenses $800 and credit supplies $800

• Debit supplies $700 and credit supplies expenses $700

• Debit supplies expenses $700 and credit supplies $700

Adjustments for accrued revenues:

• Have a liabilities and revenue account relationship

• Have an asset and revenues account relationship

• Decrease asset and revenue

• Decrease liabilities and increases revenue