1. Exam #1 Review

2. Cash is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

3. Unearned Revenue is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

4. Wages Expense is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity

5. Prepaid Insurance is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

6. Fees Earned is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

7. Jessup, Capital is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity

8. Patent is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity

9. Accounts Payable is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity

10. Notes Receivable is classified as a(n) ____. 12345 1. Asset 2. Liability 3. Owner’s Equity 4. Revenue 5. Expense

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

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

13. Which of the following accounts is NOT considered a “debit” account? 12345 1. Notes Receivable 2. Utilities Expense 3. Jessup, Withdrawals 4. Rental Income

14. Which of the following accounts is considered a “credit” account? 12345 1. Service Revenue 2. Cash 3. Land 4. Cost of Goods Sold

15. Which of the following accounts is NOT considered a “credit” account? 12345 1. Notes Payable 2. Common Stock 3. Professional Fees 4. Cash Dividends

16. Withdrawals is to a sole proprietorship as _____ is to a corporation. 12345 1. Common Stock 2. Preferred Stock 3. Stock Split 4. Dividends

17. Which of the following is an advantage of a corporation? 12345 1. Government Regulation 2. Ease of formation 3. Ease of capital generation 4. Taxation

18. Which of the following is NOT a transaction? 12345 1. Pre-paid order 2. Promise to purchase 3. Bill customer for work performed 4. Receive electric bill

19. The internal control environment is 12345 1. Management’s attitude and actions 2. Policies and procedures 3. Collusion 4. The physical facility

20. Which of the following is NOT covered in the separation of duties? 12345 a) Authorization of a refund b) Recording of a payment received c) Handling cash d) All are covered

21. Which of the following is NOT an inherent weakness of internal control? 12345 1. Collusion 2. Human error 3. Not keeping pace with changing technology 4. Management

22. 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