Exam #1 Review

Cash is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

Unearned Revenue is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

Wages Expense is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity

Prepaid Insurance is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

Fees Earned is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

Jessup, Capital is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity

Patent is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity

Accounts Payable is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity

Notes Receivable is classified as a(n) ____ Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

Which of the following accounts is considered a “debit” account? 1. Fees Earned 2. Accounts Payable 3. Accounts Receivable 4. Jessup, Capital

Which of the following accounts is considered a “debit” account? a) Fees Earned b) Accounts Payable c) Accounts Receivable d) Jessup, Capital

Which of the following accounts is NOT considered a “debit” account? Notes Receivable 2. Utilities Expense 3. Jessup, Withdrawals 4. Rental Income

Which of the following accounts is considered a “credit” account? Service Revenue 2. Cash 3. Land 4. Cost of Goods Sold

Which of the following accounts is NOT considered a “credit” account? Notes Payable 2. Common Stock 3. Professional Fees 4. Cash Dividends

Withdrawals is to a sole proprietorship as _____ is to a corporation Common Stock 2. Preferred Stock 3. Stock Split 4. Dividends

Which of the following is an advantage of a corporation? Government Regulation 2. Ease of formation 3. Ease of capital generation 4. Taxation

Which of the following is NOT a transaction? Pre-paid order 2. Promise to purchase 3. Bill customer for work performed 4. Receive electric bill

The internal control environment is Management’s attitude and actions 2. Policies and procedures 3. Collusion 4. The physical facility

Which of the following is NOT covered in the separation of duties? a) Authorization of a refund b) Recording of a payment received c) Handling cash d) All are covered

Which of the following is NOT an inherent weakness of internal control? Collusion 2. Human error 3. Not keeping pace with changing technology 4. Management

Answers 1) 1 2) 2 3) 3 4) 1 5) 4 6) 3 7) 1 8) 2 9) 1 10) 3 11) 3 12) 4 13) 1 14) 4 15) 4 16) 3 17) 2 18) 1 19) D 20) 4