Exam #1 ReviewExam #1 Review

Cash is classified as a(n) ____.Cash is classified as a(n) ____.

0% 0% 0%0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

4.4. RevenueRevenue

5.5. ExpenseExpense

Unearned Revenue is classified as Unearned Revenue is classified as a(n) ____.a(n) ____.

0% 0% 0%0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

4.4. RevenueRevenue

5.5. ExpenseExpense

Wages Expense is classified as Wages Expense is classified as a(n) ____.a(n) ____.

0% 0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

Prepaid Insurance is classified as Prepaid Insurance is classified as a(n) ____.a(n) ____.

0% 0% 0%0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

4.4. RevenueRevenue

5.5. ExpenseExpense

Fees Earned is classified as Fees Earned is classified as a(n) ____.a(n) ____.

0% 0% 0%0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

4.4. RevenueRevenue

5.5. ExpenseExpense

Jessup, Capital is classified as Jessup, Capital is classified as a(n) ____.a(n) ____.

0% 0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

Patent is classified as a(n) ____.Patent is classified as a(n) ____.

0% 0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

Accounts Payable is classified as Accounts Payable is classified as a(n) ____.a(n) ____.

0% 0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

Notes Receivable is classified as Notes Receivable is classified as a(n) ____.a(n) ____.

0% 0% 0%0%0%

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1.1. AssetAsset

2.2. LiabilityLiability

3.3. Owner’s EquityOwner’s Equity

4.4. RevenueRevenue

5.5. ExpenseExpense

Which of the following accounts is Which of the following accounts is considered a “debit” account?considered a “debit” account?

0% 0%0%0%

1.1. Fees EarnedFees Earned

2.2. Accounts PayableAccounts Payable

3.3. Accounts ReceivableAccounts Receivable

4.4. Jessup, CapitalJessup, Capital

Which of the following accounts is Which of the following accounts is considered a “debit” account?considered a “debit” account?

a)a) Fees EarnedFees Earned

b)b) Accounts PayableAccounts Payable

c)c) Accounts ReceivableAccounts Receivable

d)d) Jessup, CapitalJessup, Capital

Which of the following accounts is Which of the following accounts is NOT considered a “debit” account?NOT considered a “debit” account?

0% 0%0%0%

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1.1. Notes ReceivableNotes Receivable

2.2. Utilities ExpenseUtilities Expense

3.3. Jessup, WithdrawalsJessup, Withdrawals

4.4. Rental IncomeRental Income

Which of the following accounts is Which of the following accounts is considered a “credit” account?considered a “credit” account?

0% 0%0%0%

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1.1. Service RevenueService Revenue

2.2. CashCash

3.3. LandLand

4.4. Cost of Goods SoldCost of Goods Sold

Which of the following accounts is Which of the following accounts is NOT considered a “credit” account?NOT considered a “credit” account?

0% 0%0%0%

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1.1. Notes PayableNotes Payable

2.2. Common StockCommon Stock

3.3. Professional FeesProfessional Fees

4.4. Cash DividendsCash Dividends

Withdrawals is to a sole proprietorship as Withdrawals is to a sole proprietorship as _____ is to a corporation._____ is to a corporation.

0% 0%0%0%

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1.1. Common StockCommon Stock

2.2. Preferred StockPreferred Stock

3.3. Stock SplitStock Split

4.4. DividendsDividends

Which of the following is an Which of the following is an advantage of a corporation?advantage of a corporation?

0% 0%0%0%

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1.1. Government Government RegulationRegulation

2.2. Ease of formationEase of formation

3.3. Ease of capital Ease of capital generationgeneration

4.4. TaxationTaxation

Which of the following is NOT a Which of the following is NOT a transaction?transaction?

0% 0%0%0%

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1.1. Pre-paid orderPre-paid order

2.2. Promise to purchasePromise to purchase

3.3. Bill customer for work Bill customer for work performedperformed

4.4. Receive electric billReceive electric bill

The internal control environment is The internal control environment is

0% 0%0%0%

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1.1. Management’s Management’s attitude and actionsattitude and actions

2.2. Policies and Policies and proceduresprocedures

3.3. CollusionCollusion

4.4. The physical facilityThe physical facility

Which of the following is NOT covered Which of the following is NOT covered in the separation of duties?in the separation of duties?

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0% 0%0%0%

a)a) Authorization of a Authorization of a refundrefund

b)b) Recording of a Recording of a payment receivedpayment received

c)c) Handling cashHandling cash

d)d) All are coveredAll are covered

Which of the following is NOT an Which of the following is NOT an inherent weakness of internal control?inherent weakness of internal control?

0% 0%0%0%

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1.1. CollusionCollusion

2.2. Human errorHuman error

3.3. Not keeping pace with Not keeping pace with changing technologychanging technology

4.4. ManagementManagement

AnswersAnswers

1)1) 112)2) 223)3) 334)4) 115)5) 446)6) 337)7) 118)8) 229)9) 1110)10) 33

11)11) 3312)12) 4413)13) 1114)14) 4415)15) 4416)16) 3317)17) 2218)18) 1119)19) DD20)20) 44