Question

In: Accounting

please highlight the answer the subject is ACC111 1) The job of the retained earnings account...


please highlight the answer the subject is ACC111


1) The job of the retained earnings account is to show
A) How much expense there was during a period
B) How much was earned as net income in the past and not distributed as a dividend
C) How much usefulness remains in the asset at the end of a period
D) How much was earned during a period
2) The job of a revenue account is to show
A) The amount of product or service advertised during a period
B) The amount of product or service paid for by customers
C) The amount of product or service owed at the end of a period
D) The amount of product sold to or service performed for customers during a period
3) All prepaid items are
A) Used or consumed during the period
B) Paid for in cash during the period
C) Considered an asset because they have not yet been used
D) Still available for future use at the end of the period
4) When recording an asset purchase the company
A) Increases an asset account and reduces another asset account
B) Increases an asset account and increases a liability account
C) Reduces a revenue account
D) Either A or B
5) When recording an expense the company
A) Always increases an expense account
B) Always reduces an asset account
C) Always increases an equity account
D) Always reduces a liability account
6) When recording paying a debt the company
A) Increases the revenue account and decreases an asset account
B) Decreases a liability account and decreases an asset account
C) Decreases a liability account and increases an asset account
D) Increases the revenue account and decreases an equity account
7) When recording the sale of common stock the company
A) Increases an equity account and increases an asset account
B) Decreases a liability account and decreases an asset account
C) Increases a revenue account and decreases a liability account
D) Increases n equity account and decreases an asset account
8) When incurring an expense on account the company
A) Increases a revenue account and decreases a liability account
B) Decreases a liability account and decreases an asset account
C) Increases an expense account and increases a liability account
D) Decreases a liability account and increases an asset account
9) When collecting an account receivable the company
A) Increases a revenue account and increases an asset account
B) Increases an asset account and reduces another asset account
C) Increases a liability account and increases an asset account
D) Decreases an expense account and decreases an asset account
10) In order to determine net income the company
A) Adds the equity accounts
B) Subtracts the total expenses from the total revenue
C) Adds the total revenue and the total expenses
D) Expense accounts and asset accounts
11) In order to determine ending retained earnings
A) The amount of net income or net loss must be known
B) The beginning retained earnings amount must be known
C) The amount of dividends must be known
D) All of the above
12) In order to complete the balance sheet
A) Asset accounts are used
B) Liability accounts are used
C) Equity accounts are used
D) All of the above
13) When the company earns a net income for the period
A) Dividends must be declared
B) Revenue for the period exceeded expenses for the period
C) Liabilities are increased
D) None of the above
14) A negative balance in beginning retained earnings indicates
A) The company is reporting on its first period of operations
B) The company has paid out more dividends than all the net income it ever earned
C) The company has sustained a lot of net losses
D) Either B or C
15) The journal entry to record borrowing money
A) Debits an asset and credits a liability
B) Debits a liability and credits an expense
C) Debits a liability and credits an asset
D) Either A or C
16) The journal entry to record an expense
A) Debits an equity account and credits an expense
B) Debits an expense account and credits an asset
C) Debits an expense account and credits a liability
D) Either B or C
17) The journal entry to record collecting a receivable
A) Debits an asset and credits a revenue account
B) Debits an asset and credits a liability
C) Debits an asset and credits another asset
D) Debits an asset and credits an equity account
18) The journal entry to record buying prepaid insurance for cash
A) Debits an asset and credits an equity account
B) Debits an asset and credits another asset
C) Debits dividends and credits a liability
D) Debits a liability and credits an asset
19) The journal entry to record paying a dividend
A) Debits an asset and credits a liability
B) Debits the dividends account and credits an asset
C) Debits a liability and credits an asset
D) Either B or C
20) The two amounts that appear on two of the three financial statements are
A) Total assets and equity
B) Net income or net loss and ending retained earnings
C) Net income or net loss and dividends
D) Total liabilities and equity

Solutions

Expert Solution

Dear Student,

Answer is highlighted in yellow

1) The job of the retained earnings account is to show

A) How much expense there was during a period

B) How much was earned as net income in the past and not distributed as a dividend

C) How much usefulness remains in the asset at the end of a period

D) How much was earned during a period

2) The job of a revenue account is to show

A) The amount of product or service advertised during a period

B) The amount of product or service paid for by customers

C) The amount of product or service owed at the end of a period

D) The amount of product sold to or service performed for customers during a period

3) All prepaid items are

A) Used or consumed during the period

B) Paid for in cash during the period

C) Considered an asset because they have not yet been used

D) Still available for future use at the end of the period

4) When recording an asset purchase the company

A) Increases an asset account and reduces another asset account

B) Increases an asset account and increases a liability account

C) Reduces a revenue account

D) Either A or B

5) When recording an expense the company

A) Always increases an expense account

B) Always reduces an asset account

C) Always increases an equity account

D) Always reduces a liability account

6) When recording paying a debt the company

A) Increases the revenue account and decreases an asset account

B) Decreases a liability account and decreases an asset account

C) Decreases a liability account and increases an asset account

D) Increases the revenue account and decreases an equity account

7) When recording the sale of common stock the company

A) Increases an equity account and increases an asset account

B) Decreases a liability account and decreases an asset account

C) Increases a revenue account and decreases a liability account

D) Increases n equity account and decreases an asset account

8) When incurring an expense on account the company

A) Increases a revenue account and decreases a liability account

B) Decreases a liability account and decreases an asset account

C) Increases an expense account and increases a liability account

D) Decreases a liability account and increases an asset account

9) When collecting an account receivable the company

A) Increases a revenue account and increases an asset account

B) Increases an asset account and reduces another asset account

C) Increases a liability account and increases an asset account

D) Decreases an expense account and decreases an asset account

10) In order to determine net income the company

A) Adds the equity accounts

B) Subtracts the total expenses from the total revenue

C) Adds the total revenue and the total expenses

D) Expense accounts and asset accounts

11) In order to determine ending retained earnings

A) The amount of net income or net loss must be known

B) The beginning retained earnings amount must be known

C) The amount of dividends must be known

D) All of the above

12) In order to complete the balance sheet

A) Asset accounts are used

B) Liability accounts are used

C) Equity accounts are used

D) All of the above

13) When the company earns a net income for the period

A) Dividends must be declared

B) Revenue for the period exceeded expenses for the period

C) Liabilities are increased

D) None of the above

14) A negative balance in beginning retained earnings indicates

A) The company is reporting on its first period of operations

B) The company has paid out more dividends than all the net income it ever earned

C) The company has sustained a lot of net losses

D) Either B or C

15) The journal entry to record borrowing money

A) Debits an asset and credits a liability

B) Debits a liability and credits an expense

C) Debits a liability and credits an asset

D) Either A or C

16) The journal entry to record an expense

A) Debits an equity account and credits an expense

B) Debits an expense account and credits an asset

C) Debits an expense account and credits a liability

D) Either B or C

17) The journal entry to record collecting a receivable

A) Debits an asset and credits a revenue account

B) Debits an asset and credits a liability

C) Debits an asset and credits another asset

D) Debits an asset and credits an equity account

18) The journal entry to record buying prepaid insurance for cash

A) Debits an asset and credits an equity account

B) Debits an asset and credits another asset

C) Debits dividends and credits a liability

D) Debits a liability and credits an asset

19) The journal entry to record paying a dividend

A) Debits an asset and credits a liability

B) Debits the dividends account and credits an asset

C) Debits a liability and credits an asset

D) Either B or C

20) The two amounts that appear on two of the three financial statements are

A) Total assets and equity

B) Net income or net loss and ending retained earnings

C) Net income or net loss and dividends

D) Total liabilities and equity

ekkarill92 answered 2 years ago
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