Mid Term Exam Review Essay Example
PRINCIPLES OF ACCOUNTING I
ACCT220
MIDTERM EXAMINATION REVIEW (Chapters 1 thru 6)
Chapter 1
1. The basic accounting equation may be expressed as a. Assets = Equities. b. Assets – Liabilities = Owner's Equity. c. Assets = Liabilities + Owner's Equity. d. all of these.
2. Owner's equity is increased by a. drawings. b. revenues. c. expenses. d. liabilities.
3. Collection of a $500 Accounts Receivable a. increases an asset $500; decreases an asset $500. b. increases an asset $500; decreases a liability $500. c. decreases a liability $500; increases owner's equity $500. d. decreases an asset $500; decreases a liability $500.
4. If services are rendered for credit, then a. assets will decrease. b. liabilities will increase. c. owner's equity will increase. d. liabilities will decrease.
Chapter 2
5. The steps in preparing a trial balance include all of the following except
a. listing the account titles and their balances. b. totaling the debit and credit columns. c. proving the equality of the two columns. d. transferring journal amounts to ledger accounts.
6. A trial balance would only help in detecting which one of the following errors?
a. A transaction that is not journalized b. A journal entry that is posted twice c. Offsetting errors are made in recording the transaction d. A transposition error when transferring the debit side of journal entry to the ledger
7. Which of the following statements is false? a. Revenues increase owner's equity. b. Revenues have normal credit balances. c. Revenues are a positive factor in the computation of net income. d. Revenues are increased by debits.
8. Jack Wiser withdraws $300 cash from his business for personal use. The entry for this transaction will include a debit of $300 to
ACCT220
MIDTERM EXAMINATION REVIEW (Chapters 1 thru 6)
Chapter 1
1. The basic accounting equation may be expressed as a. Assets = Equities. b. Assets – Liabilities = Owner's Equity. c. Assets = Liabilities + Owner's Equity. d. all of these.
2. Owner's equity is increased by a. drawings. b. revenues. c. expenses. d. liabilities.
3. Collection of a $500 Accounts Receivable a. increases an asset $500; decreases an asset $500. b. increases an asset $500; decreases a liability $500. c. decreases a liability $500; increases owner's equity $500. d. decreases an asset $500; decreases a liability $500.
4. If services are rendered for credit, then a. assets will decrease. b. liabilities will increase. c. owner's equity will increase. d. liabilities will decrease.
Chapter 2
5. The steps in preparing a trial balance include all of the following except
a. listing the account titles and their balances. b. totaling the debit and credit columns. c. proving the equality of the two columns. d. transferring journal amounts to ledger accounts.
6. A trial balance would only help in detecting which one of the following errors?
a. A transaction that is not journalized b. A journal entry that is posted twice c. Offsetting errors are made in recording the transaction d. A transposition error when transferring the debit side of journal entry to the ledger
7. Which of the following statements is false? a. Revenues increase owner's equity. b. Revenues have normal credit balances. c. Revenues are a positive factor in the computation of net income. d. Revenues are increased by debits.
8. Jack Wiser withdraws $300 cash from his business for personal use. The entry for this transaction will include a debit of $300 to