Test One Review 1. Determine correct cost to record a purchase using the cost concept. 2. When given a definition, identify the correct concept being described (cost, business entity, unit of measure, objectivity). 3. Solve for Owners Equity when given assets and liabilities. 4. What affect does earning a revenue have on the accounting equation? 5. Identify the correct definition of an account (accounts receivable, prepaid expense, liabilities, unearned revenues, accounts payable, etc.) 6. Calculate the amount of change in accounting equation. 7. How does paying a liability affect the accounting equation? 8. What is the effect on the accounting equation when receivable is collected? 9. What is the effect on the accounting equation when owner makes an investment? 10. Identify the correct financial statement. 11. Identify the correct financial statement. 12. Identify the order financial statements are prepared. 13. Identify which statement an account belongs on. 14. Identify the correct definition of an account. 15. How does paying a bill in future affect the accounting equation? 16. How does the purchase of equipment affect the accounting equation? 17. Identify the collect group of assets. 18. When given a trial balance, calculate the total assets. 19. Identify which account has a normal credit balance. 20. Identify which accounts should have a normal debit balance. 21. Identify the journal entry for payment of accounts payable. 22. Identify correct journal entry for owner investment. 23. Identify the correct journal entry for insurance payment. 24. Identify the correct journal entry for owner withdrawal. 25. Identify the correct journal entry for return of supplies. 26. Identify the correct journal entry to record payment on account. 27. Identify the correct journal entry for cash collection on account. 28. Identify the correct journal entry for cash collections. 29. Identify the correct entry to record cash received in advance. 30. Identify the group of accounts that are increased with debits. 31. Identify the correct definition (journalizing, posting, journal, transposing, etc.) 32. What is a trial balance used for? 33. Identify the best explanation of a journal entry. 34. Identify if statement is true/false regarding collection of cash