The total resources of a company are referred to as

assets

The amounts recorded when the company sells products or provides services to customers are referred at as

revenues

Which of the following accounts would appear in company’s income statement

rent expense

which relationship is reflected in the balance sheet

assets=liabilities +stockholders’ equity

The cash collected from a customer would be recorded as which type of activity in the statement of cash flows

operating activity

auditors are independent parties that help

to ensure management has appropriately prepared the company’s financial statements and investors and creditors in their decisions by adding credibility to the financial statements.

which of the following assumptions indicates that the life a company can be divided into artificial time periods for periodic reporting

periodicity

What would be the effect on total assets if a company purchased land for $200,000 cash?

There would be zero effect on total assets.

What effect does the payment of dividends have on the accounting equation?

Assets decrease and equity decreases

What does the word debit mean?

left side

What effect does the payment of dividends have on the accounting equation?

Assets decrease and equity decreases

Which of the following is used to provide a chronological record of all transactions affecting a firm?

The journal

Which of the following accounts would be debited when a company pays $12,000 in advance for one year of rent?

Prepaid Rent

Which of the following accounts would appear in the credit column of a trial balance?

Common Stock

Which statement best describes when expenses should be recorded when accrual-based accounting is used to record transactions?

Expenses are recorded when the cost is used in running the business.

Which of the following would be recorded as an expense under cash-basis accounting?

The company purchases office supplies with cash and does not use the supplies.

Which of the following would be recorded as an expense under accrual-basis accounting?

The company uses utilities in the current period but does not pay cash.

Which of the following is recorded with an adjusting entry associated with a prepaid expense?

Credit an asset

Which of the following is equivalent to the book value of an asset?

Cost of the asset “net of” the accumulated depreciation

If a company pays an employee $100 per day for a five-day work week that runs from Monday to Friday, and December 31 is a Tuesday, what is the amount of the salaries adjustment, assuming that Friday is payday?

$200

If a company borrowed $20,000 on November 1 at the rate of 6% annually, how much interest expense should be accrued at the year-end date of December 31, assuming no accrual has yet been made this year?

$200

An adjusting entry would be needed for which of the following transactions?

All of the above

Which financial statement would include a line for net income?

Both a and b

Which account would NOT be closed during the closing process?

Retained Earnings

Which of the following accounts would you find on a post-closing trial balance?

Retained Earnings