Accounting 1.01 VoCats

Accounting 1.01 VoCats

Review PowerPoint

What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?

A.Decreased by $1,000B.Decreased by $2,000C. Increased by $1,000D.Increased by $2,000

ANSWER: C

Assets Owners Equity

(CASH $$)

What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?

What is the effect on owner's equity when a business receives $2000 cash from sales?

A.Decreased by $2000B.Increased by $2000C.Decreased by $4,000D.Increased by $4,000

ANSWER: B


(CASH $$)REVENUE

What is the effect on owner's equity when a business receives $2000 cash from sales?

What is the effect when $200 cash is paid to an advertising agency for advertisements for the business?

A. Assets decrease $200 and owner's equity decreases $200.

B. Assets increase $200 and owner's equity increases $200.

C. Assets increase $200 and owner's equity decreases $200.

D. Liabilities increase $200 and owner's equity decreases $200.

ANSWER: A


(CASH $$) Advertising Exp.

What is the effect when $200 cash is paid to an advertising agency for advertisements for the business?

What is the effect when $300 cash is paid to Accounts Payable/Bob's Office Supply?

A. Assets decrease $300 and owner's equity decreases $300.

B. Assets increase $300 and owner's equity increases $300.

C. Assets increase $300 and liabilities decreases $300.

D. Assets decrease $300 and liabilities decrease $300.

ANSWER: D

Assets Liability

(CASH $$) Acts Pay.

What is the effect when $300 cash is paid to Accounts Payable/Bob's Office Supply?

What is an example of an account that has a normal credit balance?

A.CashB.Accounts Payable/Jones SupplyC.Prepaid InsuranceD.Supplies

ANSWER: B


A.CashB.Office EquipmentC.SalesD.Supplies

ANSWER: C


A.CashB.Joan Brown, DrawingC.SuppliesD.Tyler Jackson, Capital

ANSWER: D

What is an example of an account that has a normal debit balance?

A. Mary Johnson, CapitalB. Accounts Payable/Ray's Office

EquipmentC. Rent ExpenseD.Sales

ANSWER: C


A. Accounts Payable/Adam's Office Supply

B. Advertising ExpenseC. Mary Johnson, CapitalD.Sales

ANSWER: B


A. Accounts Receivable/Oakdale School

B. Accounts Payable/Jones SupplyC. Mary Johnson, CapitalD.Sales

ANSWER: A


A. Advertising ExpenseB. Accounts Receivable/Davis

CompanyC. Delivery RevenueD.Samuel Johnson, Drawing

ANSWER: C

Cash, Office Equipment, and Prepaid Insurance are all classified as:

A.assetsB.liabilitiesC.owner's equityD.Revenue

ANSWER: A

Rent, the telephone bill, and advertising costs are all classified as:

A.assetsB.expensesC. liabilitiesD.Revenue

ANSWER: B

“Sales” is classified as:

A.assetsB.expensesC. liabilitiesD.Revenue

ANSWER: D

Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:

A.owner's equityB.expensesC. liabilitiesD.Revenue

ANSWER: A

Accounting 1.02 VoCats

Test Review

In the transaction, BILLED ANDERSON COMPANY FOR WORK COMPLETED, the source document is a/an:

A.Check StubB.InvoiceC.MemorandumD.ReceiptE. ANSWER: B

In the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY CO., the source document is a/an:

A.Check StubB.InvoiceC.MemorandumD.ReceiptE. ANSWER: B

In the transaction, RECEIVED CASH FROM OWNER AS AN INVESTMENT, the source document is a/an:

A.Calculator TapeB.Check StubC. InvoiceD.ReceiptE. ANSWER: D

The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?

A. Debit Cash and credit Miscellaneous ExpenseB. Debit Cash and debit Miscellaneous ExpenseC. Debit Miscellaneous Expense and credit CashD. Debit Supplies and credit Miscellaneous

Expense

ANSWER: C

Assets Owner’s Equity

(CASH $$)CREDIT

Misc. Exp.DEBIT

The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?

The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal entry?

A. Debit Accounts Receivable/Beth Parker and credit Cash

B. Debit Accounts Receivable/Beth Parker and credit Sales

C. Debit Cash and credit Accounts Receivable/Beth Parker

D.Debit Cash and credit SalesANSWER: B


(Accounts Receivable/ Beth Parker)

DEBIT

REVENUECREDIT

The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal entry?

The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry?

A. Debit Cash and credit Utilities ExpenseB. Debit Cash and credit Ted Bright,

DrawingC. Debit Ted Bright, Drawing and credit

CashD.Debit Utilities Expense and credit CashANSWER: D


(CASH $$)CREDIT

Utilities Exp.DEBIT

The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry?

The transaction, PAID CASH FOR RENT, would result in which journal entry?

A. Debit Cash and credit Miscellaneous Expense

B. Debit Cash and credit Rent ExpenseC. Debit Miscellaneous Expense and

credit CashD.Debit Rent Expense and credit CashANSWER: D


(CASH $$)CREDIT

Rent Exp.DEBIT

The transaction, PAID CASH FOR RENT, would result in which journal entry?

The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?

A. Debit Cash and credit Insurance Expense

B. Debit Cash and credit Prepaid Insurance

C. Debit Insurance Expense and credit Cash

D. Debit Prepaid Insurance and credit Cash

ANSWER: D

Assets Assets

(CASH $$)CREDIT

Prepaid InsuranceDEBIT

The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?

The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?

A. Debit Accounts Payable/Davis Supply Store and credit Supplies

B. Debit Supplies and credit Accounts Payable/Davis Supply Store

C. Debit Supplies and credit Supplies Expense

D. Debit Supplies Expense and credit Supplies

ANSWER: B

Assets Liability

(Supplies)DEBIT

Acts Pay.CREDIT

The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?

The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry?

A. Debit Cash and credit Legal Expenses

B. Debit Cash and credit Legal FeesC. Debit Legal Fees and credit CashD.Debit Miscellaneous Expense and

credit Legal FeesANSWER: B


(CASH $$)DEBIT

REVENUECREDIT

The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry?

The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT, would result in which journal entry?

A. Debit Cash and credit Frank Harper, Capital

B. Debit Cash and credit Frank Harper, Drawing

C. Debit Frank Harper, Capital and credit Cash

D. Debit Frank Harper, Drawing and credit Cash

ANSWER: A


(CASH $$)DEBIT

The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT, would result in which journal entry?

CREDIT

The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry?

A. Debit Accounts Receivable/Parker INC., and credit Cash

B. Debit Cash and credit Accounts Receivable/Parker, INC.

C. Debit Cash and credit SuppliesD.Debit Supplies and credit CashANSWER: B

Assets Assets

(CASH $$)DEBIT

Accounts Rec.CREDIT

The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry?

1.03 Key Principles for Ethics in Accounting Review

Guess the right principle

Key Principles for Ethics in Accounting

• Integrity• Objectivity• Independence• Competence• Confidentiality

44

Accountants must choose between right and wrong

Integrity

Accountants must be impartial, honest and free of

personal conflict

Objectivity

Accountants should be knowledgeable in their

profession.

Competence

Accountants are responsible for entering correct entries.

Integrity

Accountants must not share private information regarding

their clients.

Confidentiality

Accountants do not have an interest or profit financially from the companies they

audit.Independence

Accountants must not be influenced by personal

interests.

Objectivity

Accountants are expected to protect personal and private information regarding their

clients.Confidentiality

Accountants must have the skills necessary to perform

their jobs.

Competence

Accountants are responsible for true and correct financial

statements.

Integrity

Accountants must have experience in their field.

Competence

This is necessary for accountants to build trust in regards to their professional

judgmentsIntegrity

An accountant should not use information learned for

personal gain.

Confidentiality

Accountants must have the public’s confidence in their

professional services.

Independence

Accountants should behave in a way that does not suggest

inappropriateness.

Objectivity

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• Accountants must choose between right and wrong.

• Accountants are responsible for entering correct entries.

• Accountants are responsible for true and correct financial statements.

• Integrity is necessary for accountants to build trust in regards to their professional judgments.

Integrity

Objective 1.03 Understanding Ethics

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• Accountants must be: – Impartial– Honest– Free of personal conflicts

• Accountants must not be influenced by personal interests.

• Accountants should behave in a way that does not suggest inappropriateness.

Objectivity


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• Accountants do not have an interest or profit financially from the companies they audit.

• Accountants must have the public’s confidence in their professional services.

Independence


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• Accountants should be knowledgeable in their profession.

• Accountants must have the skills necessary to perform their jobs.

• Accountants must have experience in their field.

• Accountants are expected to keep abreast of current laws by continuing education classes.

Competence


65

• Accountants must not share private information regarding their clients.

• Accountants are expected to protect personal and private information regarding their clients.

• An accountant should not use information learned for personal gain.

Confidentiality


Accounting 1.01 VoCats

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