Accounting 1.01 VoCats

1. Accounting 1.01 VoCats Review PowerPoint

2. What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business? • Decreased by $1,000 • Decreased by $2,000 • Increased by $1,000 • Increased by $2,000 ANSWER: C

3. What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business? Assets Owners Equity (CASH $$)

4. What is the effect on owner's equity when a business receives $2000 cash from sales? • Decreased by $2000 • Increased by $2000 • Decreased by $4,000 • Increased by $4,000 ANSWER: B

5. What is the effect on owner's equity when a business receives $2000 cash from sales? Assets Owners Equity REVENUE (CASH $$)

6. What is the effect when $200 cash is paid to an advertising agency for advertisements for the business? • Assets decrease $200 and owner's equity decreases $200. • Assets increase $200 and owner's equity increases $200. • Assets increase $200 and owner's equity decreases $200. • Liabilities increase $200 and owner's equity decreases $200. ANSWER: A

7. What is the effect when $200 cash is paid to an advertising agency for advertisements for the business? Assets Owners Equity Advertising Exp. (CASH $$)

8. What is the effect when $300 cash is paid to Accounts Payable/Bob's Office Supply? • Assets decrease $300 and owner's equity decreases $300. • Assets increase $300 and owner's equity increases $300. • Assets increase $300 and liabilities decreases $300. • Assets decrease $300 and liabilities decrease $300. ANSWER: D

9. What is the effect when $300 cash is paid to Accounts Payable/Bob's Office Supply? Assets Liability Acts Pay. (CASH $$)

10. What is an example of an account that has a normal credit balance? • Cash • Accounts Payable/Jones Supply • Prepaid Insurance • Supplies ANSWER: B

11. What is an example of an account that has a normal credit balance? • Cash • Office Equipment • Sales • Supplies ANSWER: C

12. What is an example of an account that has a normal credit balance? • Cash • Joan Brown, Drawing • Supplies • Tyler Jackson, Capital ANSWER: D

13. What is an example of an account that has a normal debit balance? • Mary Johnson, Capital • Accounts Payable/Ray's Office Equipment • Rent Expense • Sales ANSWER: C

14. What is an example of an account that has a normal debit balance? • Accounts Payable/Adam's Office Supply • Advertising Expense • Mary Johnson, Capital • Sales ANSWER: B

15. What is an example of an account that has a normal debit balance? • Accounts Receivable/Oakdale School • Accounts Payable/Jones Supply • Mary Johnson, Capital • Sales ANSWER: A

16. What is an example of an account that has a normal credit balance? • Advertising Expense • Accounts Receivable/Davis Company • Delivery Revenue • Samuel Johnson, Drawing ANSWER: C

17. Cash, Office Equipment, and Prepaid Insurance are all classified as: • assets • liabilities • owner's equity • Revenue ANSWER: A

18. Rent, the telephone bill, and advertising costs are all classified as: • assets • expenses • liabilities • Revenue ANSWER: B

19. “Sales” is classified as: • assets • expenses • liabilities • Revenue ANSWER: D

20. Mariah Smith, Capital and Mariah Smith, Drawing are both classified as: • owner's equity • expenses • liabilities • Revenue ANSWER: A