ACC 311 Exam 1 Questions With Correct
Answers
Accounting Equation - CORRECT ANSWER✔✔-Assets = Liabilities + Stockholders'
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Equity
For Sony TV Company, sale of Land owned by them is: - CORRECT ANSWER✔✔-
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sale of an asset that may result in gain/loss
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Material received by manufacturers and not paid for leads to: - CORRECT
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ANSWER✔✔-a payable |
The Income Statement accounts should be closed at ________ - CORRECT
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ANSWER✔✔-the end of the year | | | |
True or False: A collection related to a credit sale, that is received subsequently,
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leads to an increase in Assets. - CORRECT ANSWER✔✔-False
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A payment made in advance of incurring an expense is: - CORRECT ANSWER✔✔-
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an asset |
What is the correct sequence of Accounting for transactions in a period? -
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CORRECT ANSWER✔✔-1) Record Journal Entries | | | |
2) Post JEs to T-accounts
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, 3) Calculate Ending balance and total for accounts
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4) Prepare Trial Balance
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True or False: Rental income received in advance is a Liability. - CORRECT
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ANSWER✔✔-True
Net Income _____ and Dividends paid _______ Retained Earnings. - CORRECT
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ANSWER✔✔-increases; decreases |
True or False: Total expense for a period can include cash paid and a liability -
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CORRECT ANSWER✔✔-True |
Under accrual accounting, expenses are recorded when: - CORRECT ANSWER✔✔-
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incurred
Payment of cash in the current month, for supplies received and recorded as a
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payable in the previous month, will: - CORRECT ANSWER✔✔-decrease liabilities
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Gross Profit Forumla - CORRECT ANSWER✔✔-Gross Profit = Total Revenue - Cost
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of Goods Sold
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Retained Earnings Equation - CORRECT ANSWER✔✔-Beginning Retained Earnings
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+ Net Income - Dividends = Ending Retained Earnings
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Income Measurement - CORRECT ANSWER✔✔-Net Income = Revenues -
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Expenses
Answers
Accounting Equation - CORRECT ANSWER✔✔-Assets = Liabilities + Stockholders'
| | | | | | | | |
Equity
For Sony TV Company, sale of Land owned by them is: - CORRECT ANSWER✔✔-
| | | | | | | | | | | | |
sale of an asset that may result in gain/loss
| | | | | | | |
Material received by manufacturers and not paid for leads to: - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-a payable |
The Income Statement accounts should be closed at ________ - CORRECT
| | | | | | | | | | |
ANSWER✔✔-the end of the year | | | |
True or False: A collection related to a credit sale, that is received subsequently,
| | | | | | | | | | | | | |
leads to an increase in Assets. - CORRECT ANSWER✔✔-False
| | | | | | | |
A payment made in advance of incurring an expense is: - CORRECT ANSWER✔✔-
| | | | | | | | | | | |
an asset |
What is the correct sequence of Accounting for transactions in a period? -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-1) Record Journal Entries | | | |
2) Post JEs to T-accounts
| | | |
, 3) Calculate Ending balance and total for accounts
| | | | | | |
4) Prepare Trial Balance
| | |
True or False: Rental income received in advance is a Liability. - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-True
Net Income _____ and Dividends paid _______ Retained Earnings. - CORRECT
| | | | | | | | | | |
ANSWER✔✔-increases; decreases |
True or False: Total expense for a period can include cash paid and a liability -
| | | | | | | | | | | | | | | |
CORRECT ANSWER✔✔-True |
Under accrual accounting, expenses are recorded when: - CORRECT ANSWER✔✔-
| | | | | | | | |
incurred
Payment of cash in the current month, for supplies received and recorded as a
| | | | | | | | | | | | | |
payable in the previous month, will: - CORRECT ANSWER✔✔-decrease liabilities
| | | | | | | | |
Gross Profit Forumla - CORRECT ANSWER✔✔-Gross Profit = Total Revenue - Cost
| | | | | | | | | | | |
of Goods Sold
| |
Retained Earnings Equation - CORRECT ANSWER✔✔-Beginning Retained Earnings
| | | | | | | |
+ Net Income - Dividends = Ending Retained Earnings
| | | | | | | |
Income Measurement - CORRECT ANSWER✔✔-Net Income = Revenues -
| | | | | | | | |
Expenses
