SOPHIA LEARNING UNIT 2 – MILESTONE 2 Accounting,100% CORRECT

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What are the total liabilities of John's Tackle if the total assets are $142,000 and the equity is $39,000? • $220,000 • $181,000 • $284,000 • $103,000 CONCEPT Preparing Bala ... nce Sheets 2 If Andrea recorded $56,000 as liabilities and $43,000 as equity in her balance sheet, which of the following shows the correct total of Andrea’s assets? • $13,000 • $56,000 • $43,000 • $99,000 CONCEPT Preparing Balance Sheets 3 Susan is the owner of a company in which she originally invested $10,500. On her most recent balance sheet her liabilities total $3,000 and her assets total $19,000. Which of the following is the correct total of Susan’s equity? • $22,000 • $16,000 • $7,500 • $13,500 CONCEPT Preparing Balance Sheets 4 Jennifer has a truck that she uses to deliver goods sold by her business. At the end of the year, Jennifer will record $6,000 for depreciation of the truck. What two types of accounts will be affected by this adjusting entry? • An expense account and a liability account • An asset account and an expense account • A liability account and an owner's equity account • A payable account and an asset account CONCEPT Creating Adjusting Entries 5 Jody purchased a 12-month liability insurance policy on December 1, 2013 for $12,000. Based on the partial worksheet shown above, what adjustment will Jody make on December 31, 2013? • A debit to Insurance Expense for $12,000, and a credit to Prepaid Insurance for $12,000. • A debit to Prepaid Insurance for $12,000, and a credit to Insurance Expense for $12,000. • A debit to Insurance Expense for $1,000, and a credit to Prepaid Insurance for $1,000. • A debit to Prepaid Insurance for $1,000, and a credit to Insurance Expense for $1,000. CONCEPT Creating Adjusting Entries 6 As she prepared financial documents to be discussed at her company's annual shareholders' meeting, Linda added an appendix to the financial overview that details all financial transactions in the last fiscal year. Which of the accounting principles below is she observing? • Full Disclosure Principle • Time Period Principle • Measurement Principle • Matching Principle CONCEPT Conceptual Framework and Principles 7 On September 30, 2018, Grover began preparing a trial balance worksheet. Which step occurs immediately after he prepares the income statement? • Balance Sheet • Trial Balance • Closing Entries • Adjusting Entries CONCEPT End of Period Activities 8 As she updates her accounting documents at the end of the accounting period, what kind of documentation does Jody need to make if she discovers an unrecorded receipt for the $275 purchase of a new window? • Supply expense • Owner withdrawal • Adjusting entry • Accrued revenue CONCEPT Adjusting Entries 9 If Rose is preparing an income statement with $7,000 in owner's equity, what should she record as her total revenue? • $129,000 • $102,000 • $115,000 • $122,000 CONCEPT Preparing Income Statements 10 If Karla spent $200 on Wednesday to have the windows in her building washed, recorded the accounting event that afternoon and on Friday paid $550 for a repair to the water heater and recorded that event on Friday evening, which of the accounting principles below is she following? • Full Disclosure Principle • Cost Principle • Expense Recognition Principle • Time Period Principle CONCEPT Conceptual Framework and Principles 11 As she performs the closing process, which step did Lily complete directly before determining the balance of the income summary account? • Making the drawing closing entry • Making the revenue closing entry • Preparing a post closing trial balance • Preparing an earnings summary CONCEPT Closing Entries 12 Which image below correctly shows a trial balance worksheet? • • • • CONCEPT Trial Balance 13 Which of the following correctly shows a balance sheet? • • • • CONCEPT Balance Sheet 14 An account that is not closed at the end of the accounting period is called a(n) __________. • income summary account • expense account • temporary account • permanent account CONCEPT Closing Entries 15 Which of the following is NOT true of an income statement? • Lists the company's liabilities • Is of interest to potential shareholders • Is one indicator of the general health of a company • Shows a company's profitability for a specific period of time CONCEPT Income Statement 16 Which of the following is Sue’s ending owner’s equity, in her statement of changes in owner's equity, if her records show $21,000 in investment by owner, $78,000 in net income, $18,000 in expenses and $14,000 in owner drawings? • $85,000 • $57,000 • $53,000 • $96,000 CONCEPT Preparing Statements of Changes in Owner's Equity 17 If Phil is creating a document for his company that shows net income and owner's draws from 2011-2012, which of the following kinds of documents is Phil preparing? • Trial balance sheet • Statement of changes in owner's equity • Balance sheet • Income statement CONCEPT Statement of Changes in Owner's Equity 18 What is the total owner drawings in the statement of changes in owner's equity that Cindy drafted for her cooking store, shown here? • $6,000 • $12,000 • $8,000 • $10, CONCEPT 000 Statement of Changes in Owner's Equity [Show More]

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