Multiple Choices (50 Points)

Which of the following best describes accounting?

Is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements.

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

Records economic data but does not communicate the data to users according to any specific rules.

Is of no use by individual outside of the business.

Earning revenue journal entry is recorded as:

Increases assets, decreases stockholders liabilities

Decreases assets, increases liabilities

Increases assets, increases stockholders equity

Increases one asset, decrease another assets

A chart of accounts is:

usually listed in the order in which they appear in financial statement.

Usually a listing of accounts in alphabetical order

The same as a balance sheet

One of the four financial statements.

Which group of accounts is comprised of only assets?

Unearned Revenues, Prepaid Expenses, Cash

Accounts Receivable, Revenue, Cash

Prepaid Expenses, Buildings, Patents

Cash, Accounts Payable, Buildings.

Which of the following entries records the acquisition of office supplies on account?

Office Supplies, debit; Cash, credit

Office Supplies, debit; Accounts Payable, credit

Accounts Receivable, debit; Office Supplies, credit

Cash, debit; Office Supplies, credit