Balances for each of the following accounts appear in an adjusted trial balance. Identify each as a (a) asset, (b) liability, (c) revenue, or (d) expense.
1. Accounts Receivable
2. Equipment
3. Fees Earned
4. Insurance Expense
5. Land
6. Prepaid Rent
7. Rent Revenue
8. Salary Expense
9. Salary Payable
10. Supplies
11. Unearned Rent
12. Wages Payable
On a worksheet, the Balance Sheet debit column total is $25,000 and the credit column total is $15,000. Which of the following statements is correct?
A. The company had a net income of $3,000.
B. The company had a net income of $10,000.
C. The company’s expenses were greater than revenues.
D. None of the above are correct statements.
Historically, which of the following has the AICPA been most concerned with providing?
a. Professional standards for CPAs.
b. Professional guidance for regulating financial markets.
c. Standards guiding the conduct of internal auditors.
Which of the following statements is true of managerial accounting?
a. Managerial accounting provides information to the external stakeholders of the company.
b. Managerial accounting is required to be reported annually, also may be reported monthly or quarterly.
c. Reporting under managerial accounting is constrained by rules such as generally accepted accounting principles.
d. Managerial accounting is primarily concerned with generating information for use by managers.
Crane Co. debited an asset account for $1200.00 and credited a liability account for $400.00. Which of the following would be an incorrect way to complete recording?
a. debit owner’s equity account for $750.00
b. credit another liability account for $750.00
c. credit an owner’s equity account for $750.00
d. credit an asset account for $750.00
