Finance Questions

An account that will have zero balance after closing entries have been journalized and posted is -service revenue -prepaid insurance-supplies -accumulated depreciation

The Accumulated Depreciation account - is a contra asset account with a credit balance -is a contra revenue account with a debit balance -is shown on the balance sheet as liability -is shown as an expense on the income statement

The time period assumption states that -companies must wait until the calendar year is completed to prepare financial statements -companies use the fiscal year to report financial information -the economic life of a business can be divided into artificial time periods -companies record information in the time period in which the events occur

The second step in the recording process is -preparing a trial balance -journalizing a transaction -posting to the general ledger -analyzing a transaction

An account will show a debit balance if the -total of the debit amounts exceeds the total of the credit amounts -first transaction posted was a debit-number of debits exceeds the number of credits -last transaction posted was a debit

Research conducted on firms' dividend policies over time support which one of the following conclusions?A. Aggregate dividends and stock repurchases have steadily declined in real terms.B. Dividends are currently paid by the vast majority of firms.C. Managers tend to smooth dividends.D. Stock prices tend to increase whenever anticipated changes in dividends occur.

Accounts that normally have debit balances are -assets, liabilities, dividends -assets, dividends, expenses -assets, expenses, common stock -assets, expenses, revenues

Before posting a payment of $5,000, the Accounts Payable of Senator Company has a normal balance of $16,000. The balance after posting this transaction was -$11,000-$5,000-cannot be determined -$21,000

Which of the following statements is FALSE?A. Legal bankruptcy occurs when the firm or creditors bring petitions to a federal court for bankruptcy.B. Bankruptcy refers to the legal proceeding for liquidating or reorganizing a business.C. Technical insolvency occurs when a firm has a negative net worth, because the book value of its liabilities are less than the book value of its assets.D. Liquidation is the termination of the firm as a going concern, whereas reorganization is the financial restructuring of a struggling firm to attempt to continue operations as a going concern

A list of accounts and their balances at a given point in time is called a -trial balance -general ledger -chart of accounts -general journal

The left side of an account-may represent the debit side or the credit side -is always the credit side -is always the debit side -is always the balance side

The expanded accounting equation is A=Liab+CS-Div+Rev-ExpA=Liab+CS+Div+Rev-ExpA+Liab=CS+Div+Rev+ExpA=Liab-CS-Div-Rev-Exp

Which of the following statements is false?-revenue accounts have normal credit balances -credits to revenue accounts should exceed debits -revenues increase stockholders equity -revenue accounts are increased by debits

Payment of accounts payable affects the components of the accounting equation in the following way -increases assets and decreases liabilities -decreases assets and decreases liabilities -decreases stockholders' equity and decreases liabilities -decreases assets and increases stockholders' equity

credits -increase liabilities and decrease assets -decrease both assets and equity -decrease both assets and liabilities -increase both assets and liabilities

Milo has the following year-end account balances: Accounts Receivable, $5,000; Supplies, $12,000; Equipment, $18,000; Accounts Payable, $17,000; Stockholders' Equity, $43,000. Given the account balances listed, the balance in the Cash Account should be - $25,000-$95,000-$43,000-none of these answers choices are correct

Performing services on account will have the following effects on the components of the basic accounting equation-increase assets and increase liabilities -increase assets and increase stockholders' equity -increase assets and decrease stockholders' equity

A credit to a liability account indicates -decrease in the liability-error -increase in the liability -debit could only be made to an asset account

The Unearned Service Revenue account is a -asset-expense-revenue-liability

The financial statement that reports assets, liabilities, and stockholders' equity is the -balance sheet -statement of stockholders' equity-statement of cash flow -income statement