Financial Accounting

According to result of Adjusted Trial Balance, The financial statements are prepared in oder

• Income Statement, Retained Earnings Statement, Statement of Financial Position

• Income Statement, Statement of Financial Position,

  Retained Earnings Statement,

• Retained Earnings Statement, Income Statement, Statement of Financial Position

• Statement of Financial Position,

  Retained Earnings Statement, Income Statement

UNEARNED REVENUES belong to ..... group. Fill in the blank

• Equity

• Assets

• Revenues

• Liabilities

How many accounting reports?

• 3 reports - management reports and financial statements; internal report

• 4 reports - management reports and financial statements, internal report, investor report

• 1 report - financial statements

• 2 reports - management reports and financial statements

On May 1, company X bought an equipment worth $12,000 in cash and plan to use it for 5 years. Question: Record the journal entry on May 1 & the adjusted entry for depreciation expense on May 31:

• (1/5) Debit equipment $12,000 - Credit Accounts Payable $12,000 ; (31/5) Debit Depreciation expense $200 - Credit Accumulated Depreciation - Equipment $200

• (1/5) Debit equipment $12,000 - Credit Cash $12,000 ; (31/5) Debit Depreciation expense $200 - Credit Equipment $200

• (1/5) Debit equipment $12,000 - Credit Cash $12,000 (31/5) Debit Depreciation expense $2400 - Credit Accumulated Depreciation - Equipment $2,400

• (1/5) Debit equipment $12,000 - Credit Cash $12,000 (31/5) Debit Depreciation expense $200 - Credit Accumulated Depreciation - Equipment $200

ADJUSTING entries for Accrued Expenses:

• Increase Expense; Increase Assets

• Increase Liabilities; Increase Expenses

• Increase Assets; Increase Revenues

• Increase Revenues; Increase Assets

ACCUMULATED depreciation account belongs to ??? group & The debit - credit rule of this type of account is respectively:

• None of the sentences are correct

• Assets - Increase on Debit; Decrease on Credit

• Expenses - Increase on Debit; Decrease on Credit

• Assets - Increase on Credit; Decrease in Debit

Extended Accounting equation is:

• Assets = Liabilities + Share capital - Ordinary + retained Earnings + Revenue - Expense - Dividends

• Assets = Liabilities + Share capital - Ordinary + retained Earnings + Revenue + Expense + Dividends

• Assets = Liabilities + Share capital - Ordinary + retained Earnings + Revenue - Expense + Dividends

• Assets = Liabilities - Share capital - Ordinary - retained Earnings - Revenue - Expense - Dividends

On Sep 2, the company had a transaction to recognize Service revenue of $5,000 collected in cash from customers, recorded as Debit Cash $50,000 and Credit Service Revenue $50,000. The correcting entry if the reversing entry is not used is:

• Debit Service Revenue $45,000 - Credit Cash $45,000

• Debit Service Revenue $5,000 - Credit Cash $5,000

• Debit Service Revenue $55,000 - Credit Cash $55,000

• Debit Cash $45,000 - Credit Service Revenue $45,000

ADJUSTING entries for Unearned Revenue:

• Decrease Revenue and Decrease Assets

• Have a relationship between Assets and Revenue

• Decrease Liabilities; Increase Revenues

• Increase Liabilities and Increase Revenue

COMPOUND ENTRY:

• Involve two Debit accounts

• Involve one Debit; one Credit account

• Involve three or more accounts

• Involve one account