ACCT212 Quiz Week 2

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ACCT212 Quiz Week 2
(TCO 2) A company received cash in exchange for issuing stock. This transaction increased assets and…

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ACCT212 Quiz Week 2

ACCT212 Quiz Week 2

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(TCO 2) A company received cash in exchange for issuing stock. This transaction increased assets and

Increased expenses

Increased revenues

Increased liabilities

Increased equity

(TCO 2) Which of the following transactions will increase one asset and decrease another asset?

The purchase of office supplies on account

The performance of services on account

The purchase of equipment for cash

The performance of services for cash

(TCO 2) A company performs services for a client on account. When the company receives the cash from the customer 1 month later

A revenue account is increased

A liability account is decreased

An asset account is increased

An expense account is decreased

(TCO 2) The left side of a T-account is always the

Increase side

Decrease side

Debit side

Credit side

(TCO 2) An important rule of debits and credits is

Credits increase a liability account

Debits decrease an asset account

Revenues are increased by a debit

Expenses are increased by a credit

(TCO 2) Accounting transactions are initially recorded in the

T-account

Ledger

Journal

Financial statements

(TCO 3) Under accrual accounting, revenue is recorded

When the cash is collected, regardless of when the services are performed

When the services are performed, regardless of when the cash is received

Either when the cash is received or the sale is made

Only if the cash is received at the same time the services are performed

(TCO 3) The revenue principle governs two things:

When to record revenue and where to record this revenue

Where to record revenue and the amount of revenue to record

When to record revenue and the amount of revenue to record

When to record revenue and in which journal to record the revenue

(TCO 3) Revenues and expenses affect stockholders’ equity; therefore, net income is then transferred to

the income statement

retained earnings

the balance sheet

None of the above

(TCO 3) To close the books of a company, you should

Debit each revenue account, credit each expense account, and debit the dividends account

Credit each revenue account, debit each expense account, and debit the dividends account

Debit each revenue account, credit each expense account, and credit the dividends account

Debit each revenue account, debit each expense account, and credit the dividends account

ACCT212 Quiz Week 2

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