ACCY 1 Exam 1 Review

Bob's Burgers received $100 for sale of burgers. What is the journal entry?

• Debit Cash $100, Credit Sales Revenue $100

• Debit Sales Revenue $100, Credit Cash $100

• Debit Accounts Receivable $100, Credit Sales Revenue $100

• Debit Sales Revenue $100, Credit Accounts Receivable

Paid rent for 3 months $1800, what is the journal entry? Select all that apply.

• Debit Cash $1800, Credit Prepaid Rent $1800

• Debit Prepaid Rent $1800, Credit Cash $1800

• Debit Rent Expense $1800, Credit Cash $1800

• Debit Prepaid Rent Expense$1800, Credit Cash $1800

What kind of account is unearned revenue?

• Liability

• Revenue

• Asset

• Expense

An example of a Current Asset is

• Car

• Inventory

• Land

• Creditor

Working capital is calculated by

• Total Current Assets - Total expenses

• Total liabilities + total assets

• Total current assets-total current liabilities

• Assets+capital

Select the item which is not a component of a balance sheet.

• Property, Plant and Equipment

• Current Assets

• Current Liabilities

• Expenses

When a business entity receives payment before providing its customers with goods or services

• Earned revenue

• Unearned revenue

• Accounts receivable

• Accounts payable

Prepaid Insurance is what type of account?

• Asset

• Liability

• Dividend

• Expense

Stockholders' Equity is made up of:

• Common Stock + Retained Earnings

• Revenue - Expenses

• Dividends - Expenses

• Assets + Liabilities

Buying supplies on credit will result to:

• increase both asset and liability

• increase of asset and decrease of liability

• decrease in asset and increase in liability

• no effect both asset and liability