The first item appearing on the statement of owner's equity is

a. net income
b. the ending balance of owner's equity
c. owner withdrawals
d. the beginning balance of owner's equity

In which journal would you find cash revenues recorded?

a. cash payments journal

b. general journal

c. revenues journal

d. cash receipts journal

A debit may signify a(n)

a. decrease in asset accounts

b. decrease in liability accounts

c. increase in the capital account

d. decrease in the drawing account

Which of the accounts below would be closed by posting a debit to the account?

a. Unearned Revenue
b. Fees Earned
c. Josh Morton, Drawing
d. Miscellaneous Expense

The statement of owner's equity begins with the beginning balance followed by:

a. adding investments less withdrawals

b. adding net income less withdrawals

C. adding net income plus investments

d. adding investments plus net income less withdrawals

The components of the balance sheet (statement of financial position) are:

a. assets, income, and owner’s equity

b. income, expense, and net income

c. investments, withdrawals, and net income

d. assets, liabilities, and owner’s equity

Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31?

a.$8,400

b. $840

c.$700

d. $7,700

Monique Enterprises had a stockholders’ equity balance of $158,000 at the beginning of the period. At the end of the accounting period, the stockholders’ equity balance was$198,000. Assuming there are no additional investments or dividends during the period, what is the net income for the period?

Accrued revenues would appear on the balance sheet as

A. Assets

B. Liabilities

C. Stockholders' equity

D. Prepaid expenses

Shawn Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of$26,000. At the end of the year, Shawn had 75 units in ending inventory.

Instruction

Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost.

Smokey Company purchases a one-year insurance policy on July 1 for $3,600. The adjusting entry on December 31 is

a) debit Insurance Expense,$1,500; credit Prepaid Insurance, $1,500

b) debit Insurance Expense,$2,100; credit Prepaid Insurance, $2,100

c) debit Prepaid Insurance,$1,800; credit Cash, $1,800

d) debit Insurance Expense,$1,800; credit Prepaid Insurance, $1,800

What is the purpose of the adjusted trial balance?

A.) to verify that the debits and credits balance

B.) to verify that all of the adjusting entries have been posted

C.) to verify that the net income (loss) is correctly reported

D.) to verify that no adjusting journal entry has been omitted

Which of the following general ledger accounts normally has a subsidiary ledger?

A. Capital Stock

B. Retained Earnings

C. Supplies

D. Accounts Payable

Generally accepted accounting principles require that companies use the _____ of accounting.

a. cash basis

b. deferral basis

c. accrual basis

d. account basis