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Unformatted text preview: Accounting Study Guide Accounting I & II Which of the following best describes accounting? is an information system that provides reports to stakeholders Which of the following group of companies are all examples of a merchandising business? GameStop, Best Buy, Gap Which of the following is the best description of accountings role in business? Accounting provides information to managers to operate the business and to other stakeholders to make decisions regarding the economic condition of the company. Smith Company purchased $105,000 of computer equipment from Brown Company. Smith Company paid for the equipment using cash that had been obtained from the initial investment by Connie Smith. The transaction involving the computer equipment should be recorded on the accounting records of which of the following entities? Smith Company and Brown Company Equipment with an estimated market value of $45,000 is offered for sale at $65,000. The equipment is acquired for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyers accounting records to record this acquisition is 50,000. From Problem 1-3A what it total Net Income for Mariner Financial Services? $23,665 From Problem 1-3A what it the net cash flow used from operating activities for Mariner Financial Services? $13,140 From Problem 1-6A what is supplies expense (b) for Cayenne Realty? $12,000 From Problem 1-6A what is the ending capital balance (g) for Cayenne Realty? $185,600 From Problem 1-6A what is the ending total assets (h) for Cayenne Realty? $192,000 A credit may signify a decrease in assets . Which of the following applications of the rules of debit and credit is true? increase Supplies Expense with a debit and the normal balance is a debit Which of the following entries records the receipt of cash from patients on account? Cash, debit; Accounts Receivable, credit A cash payment is recorded on the cash account as a credit . Which of the following group of accounts are all assets? Prepaid Expenses, Buildings, Patents From PE 2-1A what is the debit amount for the transaction? $13,750 From PE 2-2A what is the journal entry? Debit Accounts Receivable $6,300; Credit Fees Earned $6,300 From PE 2-3A what is the journal entry? Debit Amy Sykes, Drawing $4,500; Credit Cash $4,500 From Problem 2-2A, what is the ending balance of the cash account? $20,600 From Problem 2-2A, what is the ending balance of unadjusted the trial balance? $31,200 Deferred expenses have not yet been recorded as expenses . By matching revenues and expenses in the same period in which they incur net income or loss will be properly reported on the income statement . A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Thursday is debit Salary Expense, $16,000; credit Salaries Payable, $16,000 ....
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This note was uploaded on 05/18/2010 for the course AC ACCOUNTING taught by Professor Jgh during the Spring '10 term at Kaplan University.
- Spring '10