Review chapter 1&2 ACC

What transaction is represented by the entries: debit Supplies, credit account payable?

• The receipt of money from sale

• The issue of a invoice for the sale

• Receipt of an invoice for the purchase of supplies

• Payment for supplies

Which of the following nominal ledger accounts would normally have a credit balance on a trial balance, except?

• Prepaid account

• Account Payable

• Owner Capital

• Note payable

If the assets of a company increase by $200,000 during the year and its liabilities increase by $120,000 during the same year, then the change in equity of the company during the year must have been:

• An increase $80,000

• A decrease $80,000

• An increase $320,000

• A decrease $320,000

A company paid $2,500 cash for consultant service provided in the last month. How does this transaction affect the accounting equation for the company?

• No change in Assets. and no effect on both liabilities and equity

• Assets increased by $2,500. no effect on liabilities, equity increased by $2,500

• Assets decreased by $2,500, liabilities decreased by $2,500, no effect on equity

• No effect on assets, liabilities increased by $2,500, equity increased by $2,500

The following financial statement information: Assets: $150,000; Liabilities $70,000, Owner Capital ?, Owner Withdrawals: $15,000; Revenue: $12,000; Expense: $8,500, Net Income ?. What is the amount of Qwner's Equity?

• $80,000

• $220,000

• $8,000

• $30,000

The following financial statement information: Assets: $150,000; Liabilities $70,000, Owner Capital ?, Owner Withdrawals: $15,000; Revenue: $12,000; Expense: $8,500, Net Income ?. What is the amount of Qwner's Capital?

• $8,500

• $19,500

• $8,000

• $15,000

The following financial statement information: Assets: $150,000; Liabilities $70,000, Owner Capital ?, Owner Withdrawals: $15,000; Revenue: $12,000; Expense: $8,500, Net Income ?. What is the amount of Net Income?

• $19,500

• $12,000

• $3,500

• $8,500

Which of the following accounting principles would require that all goods and services purchased should be recorded at cost?

• Going-cocern principle

• Cost principle

• Matching principle

• Business entity principle

Which of the following activities is classified as a financial activities, except?

• Obtaining a long-term

• Borrowing money from a bank

• Withdrawals by the owner

• Purchase of land

Which of following items as source documents, except?

• Chart of accounts

• Payroll records

• Invoice from supplies

• Sale receipts