Accounting Chapter 1-3

Resources owned by a business are referred to as

Which of the following group of companies are all examples of a merchandising business?

Which of the following is not an asset?

Accounts Receivable is on the:

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

Which of the following is an asset account

Supplies is an expense account

Ramos Repair Company paid $750 in dividends to its stockholders. How does this transaction affect Ramos Repair Company's accounting equation?

An account receivable is typically classified as an asset.

It is an information system that provides reports to users regarding economic activities and condition of a business.

Generally Accepted Accounting Principles

a company's resources that it owns

both the retained earnings statement and the balance sheet

Prepaid expenses, such as prepaid insurance, are an example of a liability.

The recording of cash payments from the cash account is done by entering the amount as a debit.

The normal balance of the dividends account is a debit.

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

assets, liabilities, stockholders' equity, revenues, expenses

assets and expenses

decrease in assets

The classification and normal balance of the accounts payable account is

In which of the following types of accounts are decreases recorded by credits?

A tax firm prepared a tax return for a client and sent the customer a bill for fees earned. Select the proper journal entry

dr. Cash 40,000 cr. Common Stock 40,000.

Debiting the cash account will increase the account.