ACC 231 Exam 1 answers Question and
answers 100% correct || GRADED A+||
LATEST UPDATE 2026
which of the following is not included in the calculation for retained earnings?
assets
Cabbage Co. paid expenses of $2,000. What is the impact of this transaction?
Increase Expenses by $2000
Everest & Sons incurred expenses of $51,000 and had a net loss of ($11,000).
What are the company's revenues?
$62000
Which of the following options would increase Retained Earnings?
revenues
Which of the following statements is true about Revenues?
They belong on the income statement and show what the company has earned by
providing goods or services.
Which of the following statements is false in regard to the Accounting Cycle?
It covers unspecified time periods.
When a company journalizes a sale of services on account, which account is
credited?
Service revenue
When a company journalizes the purchase of inventory with cash, which account
is credited?
, Cash
which of the following options has a normal credit balance
revenues
Consider the following transaction: Sell $1,000 of services on account. What is
the appropriate journal entry for this transaction?
Debit Accounts Receivable $1,000 and Credit Service Revenue $1,000
The T-account for Cash has the following transactions: Debit for cash sales of
$90,000, credit for the purchase of inventory for $10,000, and credit for payment
of utilities for $1,000. Given this information, what is the ending balance in the
Cash T-Account?
$79,000
On September 1, Gracie Co. sold $22,000 in common stock in exchange for cash.
How does this transaction affect the company's accounts?
Assets increase and equity increases
Which financial statement would show accounts payable and account receivable?
Balance sheet
Is a decrease in the cash account recorded as a debit or a credit?
credit
During the year, a company earned revenues of $440 million. Expenses incurred
totaled $100 million. The company collected all but $60 million of the revenues
earned and paid $10 million of its expenses in cash.
answers 100% correct || GRADED A+||
LATEST UPDATE 2026
which of the following is not included in the calculation for retained earnings?
assets
Cabbage Co. paid expenses of $2,000. What is the impact of this transaction?
Increase Expenses by $2000
Everest & Sons incurred expenses of $51,000 and had a net loss of ($11,000).
What are the company's revenues?
$62000
Which of the following options would increase Retained Earnings?
revenues
Which of the following statements is true about Revenues?
They belong on the income statement and show what the company has earned by
providing goods or services.
Which of the following statements is false in regard to the Accounting Cycle?
It covers unspecified time periods.
When a company journalizes a sale of services on account, which account is
credited?
Service revenue
When a company journalizes the purchase of inventory with cash, which account
is credited?
, Cash
which of the following options has a normal credit balance
revenues
Consider the following transaction: Sell $1,000 of services on account. What is
the appropriate journal entry for this transaction?
Debit Accounts Receivable $1,000 and Credit Service Revenue $1,000
The T-account for Cash has the following transactions: Debit for cash sales of
$90,000, credit for the purchase of inventory for $10,000, and credit for payment
of utilities for $1,000. Given this information, what is the ending balance in the
Cash T-Account?
$79,000
On September 1, Gracie Co. sold $22,000 in common stock in exchange for cash.
How does this transaction affect the company's accounts?
Assets increase and equity increases
Which financial statement would show accounts payable and account receivable?
Balance sheet
Is a decrease in the cash account recorded as a debit or a credit?
credit
During the year, a company earned revenues of $440 million. Expenses incurred
totaled $100 million. The company collected all but $60 million of the revenues
earned and paid $10 million of its expenses in cash.
