ACG Exam 1 USF with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
All but which of the following are on a balance sheet?
A: Expenses
B: Assets
C: Payables
D: Retained earnings ✔Correct Answer-A
All but which of the following accounts are liabilities on the balance sheet?
A: Notes payable
B: Unearned Revenues
C: Accrued liabilities
D: Dividends ✔Correct Answer-D
Which of the following statements is FALSE?
A: A trial balance is prepared at the end of the month, after items have been posted to the
general ledger.
B: Journal entries are posted in the general journal, and then amounts are posted to the general
ledger.
C: The balance sheet is prepared first, then the income statement, then the statement of
retained earnings.
D: A trial balance ensures that all debits = all credits. ✔Correct Answer-C
Ryan receives $500 on 1/1/16 to cut the grass for a subdivision weekly for the next 5 weeks. On
1/31, four weeks have now passed. What adjusting entry does he need to make on 1/31, if any?
A: Debit: Cash $500 and Credit: Revenues $500
B: Debit: Revenues $500 and Credit: Unearned Revenues $500
C: Debit: A/R $400 and Credit: Revenues $400
D: Debit: Unearned Revenues $400 and Credit: Revenues $400
E: No entry is necessary until all 5 weeks have passed. ✔Correct Answer-D
ABC Company borrowed on a 6 month, 10% note payable for $5,000 on 10/1/15. Assuming no
adjusting entries were made yet, what adjusting entry for interest will they need to make at
year end on 12/31?
A: Debit: Interest expense $500 and Credit: Interest Payable $500
B:Debit: Interest expense $250 and Credit: Int. Payable $250
, C: Debit: Interest receivable $250 and Credit: Int. Income $250
D: Debit: Interest expense $125 and Credit: Interest Pay. $125 ✔Correct Answer-D
Cainas Cookies purchases Supplies on 1/1/16 for $800. Upon a count of the supplies, Cainas
determines there are $250 of supplies on hand at 1/31. What entry does she need to make?
A: Debit: Supplies $800 and Credit: Cash $800
B: Debit: Supplies Expense $250 and Credit: Supplies $250
C: Debit: Supplies Expense $550 and Credit: Supplies $550
D: Debit: Prepaid Supplies $550 and Credit: Supplies Exp $550 ✔Correct Answer-D
The normal balance for an asset account is:
A: Debit
B: Credit
C: Sometimes a debit and sometimes a credit
D: There is not enough information to answer this question. ✔Correct Answer-A
Jorge receives a gas bill for $200 on 1/28, which will be paid on 2/15, and he makes the correct
adjusting journal entry. What accounting principle is he following?
A: Historical Cost
B: Revenue Recognition
C: Matching Principle
D: Conservatism ✔Correct Answer-C
All of the following are current assets except:
A: Cash
B: Prepaid expenses
C: Equipment
D: Supplies ✔Correct Answer-C
Matt Meyer opens a hockey rink and offers hockey lessons for kids. When preparing his financial
statements for September, he realized he had provided $350 of lessons for which he had not
been paid and prepared the necessary adjusting entry. What effect did this entry have on his
financial statements?
A: Increased revenues and net income, decreased assets and equity
B: Increased revenues and net income and assets, decreased equity
C: Increased revenues, net income, assets and equity
D: Increased expenses and liabilities, decreased net income and equity. ✔Correct Answer-C
All but which of the following are temporary accounts that are closed at the end of the year?
Answers |Latest Version |Already Graded A+
All but which of the following are on a balance sheet?
A: Expenses
B: Assets
C: Payables
D: Retained earnings ✔Correct Answer-A
All but which of the following accounts are liabilities on the balance sheet?
A: Notes payable
B: Unearned Revenues
C: Accrued liabilities
D: Dividends ✔Correct Answer-D
Which of the following statements is FALSE?
A: A trial balance is prepared at the end of the month, after items have been posted to the
general ledger.
B: Journal entries are posted in the general journal, and then amounts are posted to the general
ledger.
C: The balance sheet is prepared first, then the income statement, then the statement of
retained earnings.
D: A trial balance ensures that all debits = all credits. ✔Correct Answer-C
Ryan receives $500 on 1/1/16 to cut the grass for a subdivision weekly for the next 5 weeks. On
1/31, four weeks have now passed. What adjusting entry does he need to make on 1/31, if any?
A: Debit: Cash $500 and Credit: Revenues $500
B: Debit: Revenues $500 and Credit: Unearned Revenues $500
C: Debit: A/R $400 and Credit: Revenues $400
D: Debit: Unearned Revenues $400 and Credit: Revenues $400
E: No entry is necessary until all 5 weeks have passed. ✔Correct Answer-D
ABC Company borrowed on a 6 month, 10% note payable for $5,000 on 10/1/15. Assuming no
adjusting entries were made yet, what adjusting entry for interest will they need to make at
year end on 12/31?
A: Debit: Interest expense $500 and Credit: Interest Payable $500
B:Debit: Interest expense $250 and Credit: Int. Payable $250
, C: Debit: Interest receivable $250 and Credit: Int. Income $250
D: Debit: Interest expense $125 and Credit: Interest Pay. $125 ✔Correct Answer-D
Cainas Cookies purchases Supplies on 1/1/16 for $800. Upon a count of the supplies, Cainas
determines there are $250 of supplies on hand at 1/31. What entry does she need to make?
A: Debit: Supplies $800 and Credit: Cash $800
B: Debit: Supplies Expense $250 and Credit: Supplies $250
C: Debit: Supplies Expense $550 and Credit: Supplies $550
D: Debit: Prepaid Supplies $550 and Credit: Supplies Exp $550 ✔Correct Answer-D
The normal balance for an asset account is:
A: Debit
B: Credit
C: Sometimes a debit and sometimes a credit
D: There is not enough information to answer this question. ✔Correct Answer-A
Jorge receives a gas bill for $200 on 1/28, which will be paid on 2/15, and he makes the correct
adjusting journal entry. What accounting principle is he following?
A: Historical Cost
B: Revenue Recognition
C: Matching Principle
D: Conservatism ✔Correct Answer-C
All of the following are current assets except:
A: Cash
B: Prepaid expenses
C: Equipment
D: Supplies ✔Correct Answer-C
Matt Meyer opens a hockey rink and offers hockey lessons for kids. When preparing his financial
statements for September, he realized he had provided $350 of lessons for which he had not
been paid and prepared the necessary adjusting entry. What effect did this entry have on his
financial statements?
A: Increased revenues and net income, decreased assets and equity
B: Increased revenues and net income and assets, decreased equity
C: Increased revenues, net income, assets and equity
D: Increased expenses and liabilities, decreased net income and equity. ✔Correct Answer-C
All but which of the following are temporary accounts that are closed at the end of the year?
