Final Exam Accounting 1 Review
Accounting 1 Semester 1 Final Exam Review Practice
True/False Indicate whether the sentence or statement is true or false. ____ ____ ____ ____ ____ ____ ____ ____ ____ 1. Accounting is the language of business. 2. The relationship among assets, liabilities, and owner's equity can be written as an equation. 3. The accounting equation does not have to be in balance to be correct. 4. A business that performs an activity for a fee is a service business. 5. The amount in an account is an account balance. 6. The capital account is a liability account. 7. Double lines below a column total mean that the totals have been verified as correct. 8. A withdrawal is an expense. 9. Cash is increased by expenses.
____ 10. Payments for advertising, equipment repairs, utilities, and rent are expense transactions. ____ 11. Revenue is a decrease in owner's equity resulting from the operation of a business. ____ 12. The accounting equation must remain in balance after the changes caused by a transaction have been recorded! ____ 13. The accounts on the left side of the accounting equation include the liabilities and owner's equity. ____ 14. When a company receives cash from a customer for a prior sale, the transaction decreases the cash account balance and increases the accounts receivable balance. ____ 15. When cash is paid for expenses, the business has less cash; therefore, the asset account Cash is decreased and the owner's equity account is increased! ____ 16. When cash is paid to the owner for personal use, assets decrease and owner's equity decreases. ____ 17. The right side of a balance sheet presents liabilities and assets. ____ 18. The balance of an account increases on the same side as the normal balance side. ____ 19. A list of accounts used by a business is a chart of accounts. ____ 20. Capital is an owner's equity account with a normal debit balance. ____ 21. When cash is paid for supplies, the supplies account is increased by a debit. ____ 22. The balance of a drawing
True/False Indicate whether the sentence or statement is true or false. ____ ____ ____ ____ ____ ____ ____ ____ ____ 1. Accounting is the language of business. 2. The relationship among assets, liabilities, and owner's equity can be written as an equation. 3. The accounting equation does not have to be in balance to be correct. 4. A business that performs an activity for a fee is a service business. 5. The amount in an account is an account balance. 6. The capital account is a liability account. 7. Double lines below a column total mean that the totals have been verified as correct. 8. A withdrawal is an expense. 9. Cash is increased by expenses.
____ 10. Payments for advertising, equipment repairs, utilities, and rent are expense transactions. ____ 11. Revenue is a decrease in owner's equity resulting from the operation of a business. ____ 12. The accounting equation must remain in balance after the changes caused by a transaction have been recorded! ____ 13. The accounts on the left side of the accounting equation include the liabilities and owner's equity. ____ 14. When a company receives cash from a customer for a prior sale, the transaction decreases the cash account balance and increases the accounts receivable balance. ____ 15. When cash is paid for expenses, the business has less cash; therefore, the asset account Cash is decreased and the owner's equity account is increased! ____ 16. When cash is paid to the owner for personal use, assets decrease and owner's equity decreases. ____ 17. The right side of a balance sheet presents liabilities and assets. ____ 18. The balance of an account increases on the same side as the normal balance side. ____ 19. A list of accounts used by a business is a chart of accounts. ____ 20. Capital is an owner's equity account with a normal debit balance. ____ 21. When cash is paid for supplies, the supplies account is increased by a debit. ____ 22. The balance of a drawing