191) For a journal entry with only two lines, the following entry is valid: Increase in Owners' Equity, Decrease in Revenue.

191) For a journal entry with only two lines, the following entry is valid: Increase in Owners' Equity, Decrease in Revenue. A) False B) True

192) The following amounts are reported in the ledger of ABC: Assets $80,000 Liabilities 36,000 Retained Earnings 12,000 What is the balance in the Common Stock account? A) $44,000. B) $48,000. C) $32,000. D) $42,000.

193) The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes: A) A credit to a liability. B) A credit to an asset. C) A debit to a liability. D) A debit to an asset.

194) For a journal entry with only two lines, the following entry is valid: Decrease in one Liability, Decrease in a second second liability. A) False B) True

195) Which statement is true? A) Some Income Statement accounts are Temporary and some are Permanent B) All Income Statement accounts are Temporary C) All Income Statement accounts are Permanent

196) Following are transactions of ABC, a new company, during the month of January: 1. Issued 10,000 shares of common stock for $15,000 cash. 2. Purchased land for $12,000, signing a note payable for the full amount. 3. Purchased office equipment for $1,200 cash. 4. Received cash of $14,000 for services provided to customers during the month. 5. Purchased $300 of office supplies on account. 6. Paid employees $10,000 for their first month's salaries. What was the total amount of ABC's liabilities following these six transactions? A) $12,300. B) $15,500. C) $27,300. D) $22,600.

197) Choose one A) Articulation has to do only with numbers on one statment in multiple years B) Articulation has to do only with numbers on one statment in one year C) Articulation has to do only with multiple statemtns in one year D) Articulation has to do with numbers on multiple statements in multiple years

198) The following statements pertain to recording transactions. Which of them are true? I. Total debits should equal total credits. II. It is possible to have multiple debits or credits in one journal entry. III. Assets are always listed first in journal entries. IV. Some journal entries will have debits only. A) I, II, and IV. B) II, III, and IV. C) I only. D) I and II.

199) Allocation is primarily as issue in A) Both Measuring Assets and Income B) Measuring Income C) Measuring Assets D) None of the other three

200) For the past five years, ABC reported the following annual net income and dividend amounts: Year Net Income Dividends 1 $22,000 $2,000 2 17,000 2,000 3 9,000 1,000 4 14,000 3,000 5 25,000 4,000 If ABC had Retained Earnings of $88,000 at the end of year 5, what was the company's Retained Earnings at the beginning of Year 1? A) $13,000. B) $7,000. C) $1,000. D) $25,000. 201)

The primary focus for financial accounting information is to provide information useful for: A) Investment decisions and credit decisions. B) Credit decisions but not investment decisions. C) Investment decisions but not credit decisions. D) Neither investment decisions nor credit decisions

202) For a journal entry with only two lines, the following entry is valid: Decrease in Owners' Equity, Decrease in Dividends. A) True B) False

203) The ending Retained Earnings balance of ABC increased by $3.2 million from the beginning of the year. The company declared a dividend of $1.3 million during the year. What was the net income earned during the year? A) $1.9 million. B) $3.2 million. C) $4.5 million. D) $1.3 million 207)

Consider the following account balances of ABC at the end of the year: Accounts Payable $4,400 Salaries Expense 12,800 Cash 1,700 Common Stock 2,400 Service Revenue 8,300 Supplies 4,300 Retained Earnings 1,100 Utilities Expense 5,000 How many of these accounts would appear in ABC's year-end Income Statement? A) Four. B) Two. C) Five. D) Three.

208) Consider the following list of accounts: Accounts Payable Cash Prepaid Rent Common Stock Salaries Payable Equipment Supplies Rent Expense How many of these accounts have a normal credit balance? A) Three. B) Four. C) Five. D) Two.

209) The Income Statement is a: A) Snapshot B) Video

210) For a journal entry with only two lines, the following entry is valid: Decrease in an asset, Increase in Dividends. A) False B) True

211) After the 3rd step in the Operating Cycle, the firm has? A) Inventory B) Cash C) Receivable

212) For a journal entry with only two lines, the following entry is valid: Increase in Owners' Equity, Increase in Expense. A) False B) True

213) Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Receivable Accounts Payable Common Stock Equipment Dividends How many of the above accounts have a normal debit balance? A) Six. B) Five. C) Four. D) Seven.

214) For a journal entry with only two lines, the following entry is valid: Increase in Revenue, Decrease in Expense. A) True B) False

215) For a journal entry with only two lines, the following entry is valid: Increase in Expense, Increase in Dividends. A) False B) True

216) DW has an ending Retained Earnings balance of $51,100. If during the year DW paid dividends of $4,300 and had net income of $22,500, then what was the beginning Retained Earnings balance? A) $32,900. B) $69,300. C) $24,300. D) $300.

217) For a journal entry with only two lines, the following entry is valid: Decrease in a Liability, Decrease in Owners' Equity. A) True B) False

218) The usual balance in a Contra-Dividend account is a: A) It depends B) CR C) DR 219)

For a journal entry with only two lines, the following entry is valid: Increase in one Expense, Increase in another Expense. A) False B)

True 220) The third step in the operating cycle is: A) Manufacture B) Sale C) Purchase D) Collection

221) For a journal entry with only two lines, the following entry is valid: Decrease in an asset, Decrease in a Owners' Equity. A) True B) False 30

222) When a company pays cash for equipment, what is the effect on the accounting equation for that company? A) No change. B) Increase assets and increase liabilities. C) Decrease assets and decrease liabilities. D) Increase assets and increase stockholders' equity.

223) On September 30, ABC paid employee salaries of $7,000, including $1,000 it owed to its employees last month. What are the effects of this transaction on the accounting equation? A) Expenses increased, liabilities increased, and assets increased. B) Assets decreased, expenses decreased, and liabilities increased. C) Assets increased, expenses increased, and liabilities decreased. D) Assets decreased, liabilities decreased, and expenses increased. E) Expenses decreased, liabilities decreased, and assets decreased.

224) When a company provides services on account, the accounting equation would be affected as follows: A) Revenues increase. B) Assets increase and stockholders' equity increases. C) Assets increase and liabilities decrease. D) Assets increase.

225) When a magazine sells one-year subscriptions to customers but receives the full amount of cash immediately, it is an example of a(n): A) Accrued revenue. B) Prepaid expense. C) Deferred revenue. D) Accrued expense.

226) An alternative form of the accounting equation is: A) Net Income = Revenues − Expenses. B) Assets − Liabilities = Stockholders' Equity. C) Stockholders' Equity = Assets + Liabilities. D) Assets = Liabilities − Stockholders' Equity.

227) For which step in the Operating cycle is there a difference between manufacturers and retailers? A) First B) Fourth C) Second D) Third

228) Which of the following is not a balance sheet item? A) Retained Earnings. B) Assets. C) Liabilities. D) Expenses.

229) What is usually a better predictor of future cash flow to the firm? A) Past Cash Flows B) Past Income

230) In Outsourcing, a firm A) hires a firm to do some work it was doing itself B) increase revenue C) increases expenses D) changes accounting firms

231) For a journal entry with only two lines, the following entry is valid: Decrease in a liability, Decrease in Revenue. A) False B) True

232) GAAP is an abbreviation for: A) Generally accepted auditing practices. B) Generally applied accounting procedures. C) Generally authorized accounting procedures. D) Generally accepted accounting principles.

233) Given the following, stockholders' claims to the company's resources amount to: Assets $1,200,000 Liabilities $800,000 Net income $100,000 Retained earnings $250,00 A) $400,000. B) $800,000. C) $1,200,000. D) $250,000.

234) For a journal entry with only two lines, the following entry is valid: Increase in a liability, Increase in Dividends. A) False B) True

235) Receiving cash from customers before services are performed results in: A) Prepaid Assets. B) Service Revenue. C) Accounts Receivable. D) Deferred Revenues.

236) The usual balance in a Contra-Asset account is a: A) CR B) DR C) It depends

237) Accounts Receivable are like A) Dead Fish B) a Fine Wine

238) ABC provides music for special occasions. On January 14, the Smith family hired ABC for an upcoming family wedding for an agreed upon fee of $10,000. The wedding was scheduled for May 23. As part of the agreement, the Smiths paid ABC half of the fee at the end of April with the remaining amount due by the end of June. How would ABC record the receipt of the final payment in June? A) Debit to Deferred Revenue. B) Credit to Service Revenue. C) Credit to Cash. D) Credit to Accounts Receivable.

239) Assume that ABC had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions during April. Issued common stock for cash, $5,000. Provided services to customers on account, $2,000. Provided services to customers in exchange for cash, $900. Purchased equipment and paid cash, $4,300. Paid April rent, $800. Paid employees' salaries for April, $700. What was ABC's retained earnings balance at the end of April? A) $11,400. B) $16,400. C) Some other amount. D) $12,100.

240) In a Balanced set of Accounting Records, EVERY Account must balance. A) True B) False

241) During a Sale in the operating cycle, what happens to cash? A) Increases B) Stays the Same C) It depends D) Decreases

242) A company orders office supplies in June. Those supplies are received and paid for in July. The supplies are used in August. In which month should the company record supplies expense? A) August. B) Evenly over the three months. C) July. D) June.

243) Income in the operating cycle equals A) It depends on the Measuring system. B) Benefit Value Plus Sacrifice Value C) Benefit Value Minus Sacrifice Value D) Sacrifice Value Minus Benefit Value

244) For a journal entry with only two lines, the following entry is valid: Decrease in an asset, Increase in Revenue. A) False B) True

245) In Cash Flow reporting Accounts Receivable is measured at A) It depends on the measuring system B) Sacrifice Value C) Benefit Value D) $0 33

246) Which of the following are made AFTER the financial statements are prepared? A) Transaction Entries B) Closing Entries C) Adjusting Entries

247) Which of the following is NOT possible for a business transaction? A) Decrease assets and increase expense. B) Increase liabilities and increase expense. C) Decrease liabilities and increase revenue. D) Increase assets and decrease revenue.

248) ABC had a net income of $8,000, $5,000, $12,000, and $10,000 over the first four years of the company's existence. If the average annual amount of dividends paid over the last four years is $3,000, what is the ending retained earnings balance? A) $35,000. B) $23,000. C) $7,000. D) $47,000.

249) Consider the following transactions: Issued common stock for cash. Purchased equipment by signing a note payable. Provided services to customers on account. Collected cash from customers on account. How many of these four transactions increased the given company's total liabilities? A) Two. B) One. C) Four. D) Three.

250) Choose one: A) The Statement of Cash Flows always balances B) The Statement of Cash Flows never balances C) It is possible for Balance in Cash on the Statement of Cash Flows to be zero