Financial Accounting Ch. 2 Quiz

Which of the following accounts is not an asset account?

Service Revenue

Which of the following is not a liability?

 

Accounts Receivable

Which of the following is an equity account?

All of the above

An account titled Unearned Fees would be classified as which of the following?

Liability account

The dividends account is a(n):

Equity

Which of the following is a list of all accounts a company uses and includes an identification number assigned to each account?

A chart of accounts

Which of the following statements correctly reflects an account and its normal balance?

Accounts receivable has a normal debit balance

Double-entry accounting requires which of the following?

Each transaction must affect, and be recorded in, at least two accounts.

The ABC Corporation purchased a three-year insurance policy for $20,000 cash. Recording the purchase of the insurance policy will require which of the following?

One asset to be debited, another asset to be credited

Phillip Anderson received $6,000 for some excavation work to be done when the weather permits. Phillip figures it will be at least three weeks before he can start the job. Recording the transaction requires which of the following?

An asset to be debited, a liability to be credited

The Statement of Retained Earnings:

Reports information about how retained earnings changed over a period of time

Which of the following items are not found in a journal entry?

Cumulative balance of each account affected by the entry

The net profit or loss for a specific period of time is reported on which of the following?

Income statement

The financial position of the business on a given date is reported on which of the following?

Balance sheet

Which of the following accounts would not appear on the income statement?

Unearned revenue

In the powerpoint, who told you to review the rules of T-accounts?

a runner with a baton

In the powerpoint, what was wrong with Scott Studley who purchased stock in the company?

He had a broken leg

In the powerpoint, a bear tells you something about debits and credits. What did he say?

Total debit $ must equal total credit $

In the powerpoint, the company performed services on account to which organization?

Mizzou Univ.

In the powerpoint, who said that the general journal is a diary of all financial transactions that occurs within a business?

a peach

In the powerpoint, who says that a compound entry is more than just two accounts?

a lady exercising with a red ball

In the powerpoint, what items were included among the purchase of office equipment?

5 large shredding machines

In the video, the presenter misspoke about when to "Debit" the Common Stock account. She said "credit" but actually meant "debit" and she entered the word "debit" on the left side of the Common Stock account (which was correct). In her narration, she said that the only time you would debit the Common Stock account would be ...._____(when)?

The company retired stock.

In the video, the narrator mentioned when the Dividends account would be credited. What did she say related to this?

She said that businesses don't normally credit the Dividends account.