Question
For the following, match each financial statement with the accounts reported in it. 3. Revenues and expenses. A. Income statement 4. Dividends. B. Statement of
For the following, match each financial statement with the accounts reported in it.
3. |
| Revenues and expenses. | A. Income statement |
4. |
| Dividends. | B. Statement of stockholders' |
5. |
| Assets and liabilities. | C. Balance sheet |
For the following, match the appropriate accounting term or principle for the descriptions below.
|
| Accounting basis or Principle | Term |
6. |
| The U.S. independent body that establishes financial accounting and reporting | A. Cashbasis |
7. |
| The accounting basis that record revenues when earned and expenses with the related revenues. | B. Accrualbasis |
8. |
| The rules of financial accounting. | C. Matching principle |
9. |
| The accounting basis that records revenues when cash is received and records expenses | D. Revenuerecognition |
10. |
| Recognize expenses in the same period as the revenues they help to generate. | E. GAAP |
11. |
| Record revenue in the period in which we provide goods and services to customers. | F. FASB |
12. The two categories of stockholders' equity usually found in the balance sheet of a corporation are:
Common stock and liabilities.
Assets and liabilities.
Common stock and retained earnings.
Revenues and expenses.
For the following, match each account classification with its example.
13. |
| Resources of the company. | A. Liabilities |
14. |
| Creditors claim to resources. | B. Revenues |
15. |
| Common stock issued to investors. | C. Dividends |
16. |
| Payments made to stockholders. | D. Stockholders' |
17. |
| Sales of products or services. | E. Assets |
18. |
| Costs of selling products or services. | F. Expenses |
For the following:
Indicate the account classifications: asset, liability, stockholders' equity, revenue, or expense.
Indicate the normal balance of the account: debit or credit.
| Account Classification |
Normal Balance |
Account |
19. |
|
| Utilities Expense |
20. |
|
| Prepaid Rent |
21. |
|
| Salaries Payable |
22. |
|
| Service Revenue |
23. |
|
| Land |
24. |
|
| Salaries Expense |
25. |
|
| Accounts Payable |
26. |
|
| Common Stock |
27. |
|
| Accounts Receivable |
28. |
|
| Deferred Revenue |
Below are account balances for Huffman Corporation at the end of December.
Accounts | Balance |
Cash | $ 5,200 |
Salaries expense | 2,300 |
Retained earnings | 2,500 |
Advertising expense | 1,200 |
Equipment | 12,400 |
Service revenue | 9,400 |
Common stock | 7,000 |
Accounts payable | 2,200 |
Wages Expense | 11,000 |
Compute Net Income: _______________________
A company received a $400 bill for newspaper advertising services performed earlier this month. The bill will be paid in 10 days. How would the transaction be recorded today?
Debit Advertising Expense $400, credit Accounts Payable $400.
Debit Accounts Payable $400, credit Advertising Expense $400.
Debit Accounts Payable $400, credit Cash $400.
Debit Advertising Expense $400, credit Cash $400.
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