ACC 250 Exam 1 Flashcards - Quizlet

ACC 250 exam 1
Study online at https://quizlet.com/_4gh9uf
1. Valentine's Corporation received a $420 Debit Cash, $180 and Sales Rev-
check from a customer for a balance enue, $240; Credit Accounts Re-
due on their account. The transaction ceivable, $420
was recorded incorrectly as a debit to
Cash $240 and a credit to Sales Revenue
$240. The correcting entry is
2. What is the correct order in preparing First Income Statement, then

the 3 financial statements? Statement of Retained Earnings,
then Balance Sheet
3. The Balance Sheet contains what 3 Assets, liabilities, and stockhold-

types of categories/accounts? ers' equity
4. The Income Statement contains which Revenues and expenses

two categories/accounts?
5. Which account will have a zero balance Sales revenue

after closing entries have been journal-
ized and posted?
6. Adjusting Entries are made to ensure expenses are recognized in the

that: period in which they are incurred,
revenues are recognized in the
period in which the performance
obligation is satisfied, balance
sheet and income statement ac-
counts have correct balances at
the end of the accounting period.
7. A company spends $10 million dollars Over the useful life of the building
for an office building. Over what period
should the cost of this building be writ-
ten off (expensed as depreciation ex-
pense)?
8. Deb Smiley has performed $500 of CPA Debit Accounts Receivable and
services for a client but has not billed credit Service Revenue
the client as of the end of the accounting
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ACC 250 exam 1
period. What adjusting entry must Deb
make?
9. The Accounts Receivable account has 20,000

a beginning balance of $52,000 and an
ending balance of $74,000. If $42,000
was sold on account during the year,
what were the total collections on ac-
count?
10. The closing entry process consists of All temporary accounts

closing:
11. Posting transfers journal entries to ledger

accounts
12. At October 1, 2017, Padilla Industries 25,000

had an accounts payable balance of
$40,000. During the month, the com-
pany made purchases on account of
$33,000 and made payments on account
of $48,000. At October 31, 2017, the ac-
counts payable balance is:
13. What financial statement is Unearned balance sheet

Service Revenue on?
14. A trial balance will not balance if: A $100 cash dividends is debit-
ed to the Dividends account for
$1,000 and credited to Cash for
$100
15. Accounts that normally have debit bal- Assets, dividends, and expenses
ances are:
16. Debits: Increase assets and decrease lia-

bilities
17. The normal balance of any account is Side which increases that ac-
the count
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ACC 250 exam 1
18. If a company has overdrawn its bank its cash account will show a credit
balance, then balance
19. Which account below is NOT a subdivi- Revenues

sion of retained earnings?
20. Stockholders' equity is comprised of common stock and retained earn-

ings
21. Three forms of business organization: Corporations, proprietorships,

and partnerships
22. If total liabilities decreased by $90,000 $60,000 decrease

and stockholders' equity increased by
$30,000 during a period of time, then to-
tal assets must change by what amount
and direction during that same period?
23. Which financial statement is prepared income statement

first?
24. Unearned service revenue is reported balance sheet

on the:
25. Valentine Company began the year by $140,000

issuing $120,000 of common stock for
cash. The company recorded revenues
of $1,100,000, expenses of $960,000,
and paid dividends of $60,000. What was
Valentine's net income for the year?
26. Debts and obligations of a business are liabilities

referred to as
27. To show how successfully your busi- income statement

ness performed during a period of time,
you would report its revenues and ex-
penses in the
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ACC 250 exam 1
28. The liability created by a business when accounts payable
it purchases coffee beans and coffee
cups on credit from suppliers is termed
a(n)
29. The accounting equation may be ex- Assets= Liabilities + Stockhold-

pressed as ers' equity
30. Net income will result during a time pe- revenues exceed expenses
riod when:
31. Which of the following financial state- balance sheet

ments is prepared as of a specific date?
32. Which of the following is the BEST def- Managers who use accounting in-
inition of an internal user of accounting formation to plan, organize, and
information? run a business
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ACC 250 exam 1

Study online at https://quizlet.com/_4gh9uf

2. What is the correct order in preparing First Income Statement, then

3. The Balance Sheet contains what 3 Assets, liabilities, and stockhold-

4. The Income Statement contains which Revenues and expenses

5. Which account will have a zero balance Sales revenue

6. Adjusting Entries are made to ensure expenses are recognized in the

9. The Accounts Receivable account has 20,000

10. The closing entry process consists of All temporary accounts

11. Posting transfers journal entries to ledger

12. At October 1, 2017, Padilla Industries 25,000

13. What financial statement is Unearned balance sheet

16. Debits: Increase assets and decrease lia-

19. Which account below is NOT a subdivi- Revenues

20. Stockholders' equity is comprised of common stock and retained earn-

21. Three forms of business organization: Corporations, proprietorships,

22. If total liabilities decreased by $90,000 $60,000 decrease

23. Which financial statement is prepared income statement

24. Unearned service revenue is reported balance sheet

25. Valentine Company began the year by $140,000

26. Debts and obligations of a business are liabilities

27. To show how successfully your busi- income statement

29. The accounting equation may be ex- Assets= Liabilities + Stockhold-

31. Which of the following financial state- balance sheet

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