Accounting 1.01 VoCats Review PowerPoint

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Accounting 1.02 VoCats Test Review

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

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

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

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

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

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

(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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Key Principles for Ethics in Accounting Integrity Objectivity Independence Competence Confidentiality

Accountants must choose between right and wrong Integrity

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

Accountants should be knowledgeable in their profession. Competence

Accountants are responsible for entering correct entries. Integrity

Accountants must not share private information regarding their clients. Confidentiality

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

Accountants must not be influenced by personal interests. Objectivity

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

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

Accountants are responsible for true and correct financial statements. Integrity

Accountants must have experience in their field. Competence

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

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

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

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

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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

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

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

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

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