TEKS Review Acct I Fall 2024

Assets taken out of a business for the personal use of the owner are called

• net income

• net loss

• investments

• withdrawals

The entry to establish a $200.00 petty cash fund is

• debit Petty Cash, $200.00; credit Cash, $200.00.

• debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00.

• debit Miscellaneous Expense, $200.00; credit Cash, $200.00

• debit Cash, $200.00; credit Petty Cash, $200.00.

If an amount is recorded on the side of a T account that is opposite the normal balance side, the account balance is

• increased

• decreased

• unaffected

• correct

On a work sheet, the balance of the owner's drawing account is extended to the

• Income Statement Debit column

• Income Statement Credit column

• Balance Sheet Debit column

• Balance Sheet Credit column

Information needed to prepare an income statement’s Revenue section is obtained from a worksheet’s Account Title column and

• Income Statement Debit Column

• Income Statement Credit Column

• Balance Sheet Debit Column

• Balance Sheet Credit column

When cash is paid for insurance,

• Prepaid Insurance is decreased.

• Prepaid Insurance is credited.

• Prepaid Insurance is increased

• None of these

All of the following statements about the chart of accounts are true EXCEPT:

• Assets are listed in order of liquidity

• Liabilities are listed alphabetically

• Assets are listed in the order the accounts are created

• Expenses are listed alphabetically

The journal entry to close Income Summary when there is a net income is

• debit Sales; credit Income Summary

• debit Owner's Capital; credit Income Summary

• debit Income Summary; credit Sales

• debit Income Summary; credit Owner's Capital

Assets accounts include Cash, Prepaid Insurance, and

• Accounts Payable

• Accounts Receivable

• Sales

• Utilities Expense

Reporting changes in financial information for a specific period of time in the form of financial statements is an application of the accounting concept

• Matching Expenses with Revenue.

• Accounting Period Cycle.

• Consistent Reporting.

• Going Concern.