1. Accounting 1.01 VoCats
Review PowerPoint

2. Decreased by $1,000 Decreased by $2,000 Increased by $1,000
What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?
Decreased by $1,000
Decreased by $2,000
Increased by $1,000
Increased by $2,000
ANSWER: C

3. What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?
Assets
Owners Equity
(CASH $$)

4. Decreased by $2000 Increased by $2000 Decreased by $4,000
What is the effect on owner's equity when a business receives $2000 cash from sales?
Decreased by $2000
Increased by $2000
Decreased by $4,000
Increased by $4,000
ANSWER: B

5. What is the effect on owner's equity when a business receives $2000 cash from sales?
Assets
Owners Equity
REVENUE
(CASH $$)

6. What is the effect when $200 cash is paid to an advertising agency for advertisements for the business?
Assets decrease $200 and owner's equity decreases $200.
Assets increase $200 and owner's equity increases $200.
Assets increase $200 and owner's equity decreases $200.
Liabilities increase $200 and owner's equity decreases $200.
ANSWER: A

7. What is the effect when $200 cash is paid to an advertising agency for advertisements for the business?
Assets
Owners Equity
Advertising Exp.
(CASH $$)

8. What is the effect when $300 cash is paid to Accounts Payable/Bob's Office Supply?
Assets decrease $300 and owner's equity decreases $300.
Assets increase $300 and owner's equity increases $300.
Assets increase $300 and liabilities decreases $300.
Assets decrease $300 and liabilities decrease $300.
ANSWER: D

9. What is the effect when $300 cash is paid to Accounts Payable/Bob's Office Supply?
Assets
Liability
Acts Pay.
(CASH $$)

10. What is an example of an account that has a normal credit balance?
Cash
Accounts Payable/Jones Supply
Prepaid Insurance
Supplies
ANSWER: B

11. What is an example of an account that has a normal credit balance?
Cash
Office Equipment
Sales
Supplies
ANSWER: C

12. What is an example of an account that has a normal credit balance?
Cash
Joan Brown, Drawing
Supplies
Tyler Jackson, Capital
ANSWER: D

13. What is an example of an account that has a normal debit balance?
Mary Johnson, Capital
Accounts Payable/Ray's Office Equipment
Rent Expense
Sales
ANSWER: C

14. What is an example of an account that has a normal debit balance?
Accounts Payable/Adam's Office Supply
Advertising Expense
Mary Johnson, Capital
Sales
ANSWER: B

15. What is an example of an account that has a normal debit balance?
Accounts Receivable/Oakdale School
Accounts Payable/Jones Supply
Mary Johnson, Capital
Sales
ANSWER: A

16. What is an example of an account that has a normal credit balance?
Advertising Expense
Accounts Receivable/Davis Company
Delivery Revenue
Samuel Johnson, Drawing
ANSWER: C

17. Cash, Office Equipment, and Prepaid Insurance are all classified as:
assets
liabilities
owner's equity
Revenue
ANSWER: A

18. Rent, the telephone bill, and advertising costs are all classified as:
assets
expenses
liabilities
Revenue
ANSWER: B

19. “Sales” is classified as:
assets
expenses
liabilities
Revenue
ANSWER: D

20. owner's equity expenses liabilities Revenue ANSWER: A
Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:
owner's equity
expenses
liabilities
Revenue
ANSWER: A

21. Accounting 1.02 VoCats
Test Review

22. Check Stub Invoice Memorandum Receipt ANSWER: B
In the transaction, BILLED ANDERSON COMPANY FOR WORK COMPLETED, the source document is a/an:
Check Stub
Invoice
Memorandum
Receipt
ANSWER: B

23. Check Stub Invoice Memorandum Receipt ANSWER: B
In the transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY CO., the source document is a/an:
Check Stub
Invoice
Memorandum
Receipt
ANSWER: B

24. Calculator Tape Check Stub Invoice Receipt ANSWER: D
In the transaction, RECEIVED CASH FROM OWNER AS AN INVESTMENT, the source document is a/an:
Calculator Tape
Check Stub
Invoice
Receipt
ANSWER: D

25. The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?
Debit Cash and credit Miscellaneous Expense
Debit Cash and debit Miscellaneous Expense
Debit Miscellaneous Expense and credit Cash
Debit Supplies and credit Miscellaneous Expense
ANSWER: C

26. The transaction, PAID CASH FOR MISCELLANEOUS EXPENSE, $400, would result in which journal entry?
Assets
Owner’s Equity
(CASH $$)
CREDIT
Misc. Exp.
DEBIT

27. Debit Accounts Receivable/Beth Parker and credit Cash
The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal entry?
Debit Accounts Receivable/Beth Parker and credit Cash
Debit Accounts Receivable/Beth Parker and credit Sales
Debit Cash and credit Accounts Receivable/Beth Parker
Debit Cash and credit Sales
ANSWER: B

28. (Accounts Receivable/ Beth Parker)
The transaction, SOLD SERVICES ON ACCOUNT TO BETH PARKER, would result in which journal entry?
Assets
Owners Equity
REVENUE
CREDIT
(Accounts Receivable/ Beth Parker)
DEBIT

29. Debit Cash and credit Utilities Expense
The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry?
Debit Cash and credit Utilities Expense
Debit Cash and credit Ted Bright, Drawing
Debit Ted Bright, Drawing and credit Cash
Debit Utilities Expense and credit Cash
ANSWER: D

30. The transaction, PAID CASH FOR ELECTRIC BILL (UTILITIES EXPENSE) would result in which journal entry?
Assets
Owners Equity
(CASH $$)
CREDIT
Utilities Exp.
DEBIT

31. Debit Cash and credit Miscellaneous Expense
The transaction, PAID CASH FOR RENT, would result in which journal entry?
Debit Cash and credit Miscellaneous Expense
Debit Cash and credit Rent Expense
Debit Miscellaneous Expense and credit Cash
Debit Rent Expense and credit Cash
ANSWER: D

32. The transaction, PAID CASH FOR RENT, would result in which journal entry?
Assets
Owners Equity
(CASH $$)
CREDIT
Rent Exp.
DEBIT

33. The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?
Debit Cash and credit Insurance Expense
Debit Cash and credit Prepaid Insurance
Debit Insurance Expense and credit Cash
Debit Prepaid Insurance and credit Cash
ANSWER: D

34. The transaction, PAID CASH FOR INSURANCE, would result in which journal entry?
Assets
Assets
Prepaid Insurance
DEBIT
(CASH $$)
CREDIT

35. The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?
Debit Accounts Payable/Davis Supply Store and credit Supplies
Debit Supplies and credit Accounts Payable/Davis Supply Store
Debit Supplies and credit Supplies Expense
Debit Supplies Expense and credit Supplies
ANSWER: B

36. The transaction, BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE, would result in which journal entry?
Assets
Liability
Acts Pay.
CREDIT
(Supplies)
DEBIT

37. Debit Cash and credit Legal Expenses Debit Cash and credit Legal Fees
The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry?
Debit Cash and credit Legal Expenses
Debit Cash and credit Legal Fees
Debit Legal Fees and credit Cash
Debit Miscellaneous Expense and credit Legal Fees
ANSWER: B

38. The transaction, RECEIVED A CHECK FOR $2500 FOR LEGAL FEES, would result in which journal entry?
Assets
Owners Equity
REVENUE
CREDIT
(CASH $$)
DEBIT

39. The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT, would result in which journal entry?
Debit Cash and credit Frank Harper, Capital
Debit Cash and credit Frank Harper, Drawing
Debit Frank Harper, Capital and credit Cash
Debit Frank Harper, Drawing and credit Cash
ANSWER: A

40. The transaction, RECEIVED CHECK FROM FRANK HARPER, OWNER, AS AN INVESTMENT, would result in which journal entry?
Assets
Owners Equity
(CASH $$)
DEBIT
CREDIT

41. Debit Accounts Receivable/Parker INC., and credit Cash
The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry?
Debit Accounts Receivable/Parker INC., and credit Cash
Debit Cash and credit Accounts Receivable/Parker, INC.
Debit Cash and credit Supplies
Debit Supplies and credit Cash
ANSWER: B

42. The transaction, RECEIVED CHECK FROM PARKER, INC
The transaction, RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT, would result in which journal entry?
Assets
Assets
Accounts Rec.
CREDIT
(CASH $$)
DEBIT

43. 1.03 Key Principles for Ethics in Accounting Review
Guess the right principle

44. Key Principles for Ethics in Accounting
Integrity
Objectivity
Independence
Competence
Confidentiality

45. Accountants must choose between right and wrong
Integrity

46. Accountants must be impartial, honest and free of personal conflict
Objectivity

47. Accountants should be knowledgeable in their profession.
Competence

48. Accountants are responsible for entering correct entries.
Integrity

49. Accountants must not share private information regarding their clients.
Confidentiality

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

51. Accountants must not be influenced by personal interests.
Objectivity

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

53. Accountants must have the skills necessary to perform their jobs.
Competence

54. Accountants are responsible for true and correct financial statements.
Integrity

55. Accountants must have experience in their field.
Competence

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

57. An accountant should not use information learned for personal gain.
Confidentiality

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

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

60. 

61. Objective 1.03 Understanding Ethics
Integrity
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.
Objective 1.03 Understanding Ethics

62. Objective 1.03 Understanding Ethics
Objectivity
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.
Objective 1.03 Understanding Ethics

63. Objective 1.03 Understanding Ethics
Independence
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.
Objective 1.03 Understanding Ethics

64. Objective 1.03 Understanding Ethics
Competence
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.
Objective 1.03 Understanding Ethics

65. Objective 1.03 Understanding Ethics
Confidentiality
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.
Objective 1.03 Understanding Ethics