Exam 1 Review

1. The costs of doing business are classified​ as:

2. 
   

• revenues

• assets

• expenses.

• liabilities

1. A doctor purchases medical supplies of​ $640 and pays​ $290 cash with the remainder on account. The journal entry for this transaction would be which of the​ following?

• Debit Supplies

    Credit Accts Rec

    Credit Cash

• Debit Supplies

    Credit Accts Payable

    Credit Cash

  
  

• Debit Supplies

    Debit Accts Rec

  Credit Cash

  
  

• Debit Supplies

       Debit Accts Payable Credit Cash

1. If the credit to record the purchase of supplies on account is not​ posted,

• expenses will be overstated.

• liabilities will be understated.

• stockholders' equity will be understated.

• assets will be understated.

1. A​ company's balance of retained earnings on January 1 was $ 20 million. During the​ year, sales revenue was $ 75 ​million, while expenses totaled $ 40 million. The company declared and paid $ 10 million in cash dividends during the year. What was the balance of retained earnings at the end of the​ year?

2. 
   

• A. $ 45 million

• B. $ 145 million

• C. $ 65 million

• D. $ 55 million

Tags

CCSS.HSN.RN.B.3

Which accounts do we close at the end of the period? (Select all that apply)

• Revenue

• Expenses

• Dividends

• Accounts Receivable

What is the current ratio formula?

• Current Assets/ Current Liabilities

• Current Liabilities/ Current Assets

• Current Assets/ Total Liabilities

• Total Assets/ Total Liabilities

Tags

CCSS.6.RP.A.1

CCSS.6.RP.A.2

Which of the following is FALSE when closing temporary accounts?

• Debit Retained Earnings

  Credit Revenue

  to close Revenues

• Debit Retained Earnings

  Credit Expenses

  to close expenses

• Debit Retained Earnings

  Credit Dividends

  to close dividends

• All closing entries effect the Retained Earnings balance.

Which of the following has a normal credit balance? (Select all that apply)

• Common Stock

• Prepaid Expenses

• Dividends

• Revenues