alek

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zippypinguini
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62628
Filename:
alek
Updated:
2011-01-28 14:09:23
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alek chap
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alek chap 3
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  1. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    unearned service revenue
    unearned service revenue is none of these. It's a liability

    Unearned Revenue is a liability account. Liabilities do not cause stockholders' equity to increase or decrease.
  2. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Service Revenue
    Service Revenue is a revenue.

    Service Revenue is a revenue account. Revenue increases net income, which in turn increases stockholders' equity.
  3. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Advertising expense
    Advertising expense is an expense

    Expenses decrease net income, which in turn decreases stockholders' equity.
  4. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    supplies
    Supplies account represents the cost of supplies purchased but not yet used. Supplies have future benefit and are, therefore, an asset.
  5. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Salaries Expense
    Change to Stockholders' equity
  6. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.


    Accounts payable
    Accounts Payable represents amounts that the company owes its suppliers. Accounts Payable represents a future obligation and is, therefore, a liability.
  7. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Merchandise Inventory
    Merchandise Inventory represents the cost of goods available to be sold in the normal course of business. Merchandise Inventory has future benefit and is, therefore, an asset.
  8. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Gonzales Corporation issues Stock
    Issuance of Stock represents cash received from stockholders investing in the corporation. When stock is issued, the equity or net worth of the entity increases. Gonzalez Corporation's issuance of stock is thus one of four ways that stockholders' equity can change.
  9. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Unearned service revenue
    Unearned Revenue represents cash received in advance of performing the service. Unearned Revenue represents a future obligation and is, therefore, a liability.
  10. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Salaries expense
    An expense is the value of assets used up or services consumed in the process of producing goods and services to generate revenues. Salary Expense represents used up cost related to salaries. Salaries Expense is thus one of four ways that stockholders' equity can change.
  11. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Evans Corporation issues Stock
    Issuance of Stock represents cash received from stockholders investing in the corporation. When stock is issued, the equity or net worth of the entity increases. Evans Corporation's issuance of stock is thus one of four ways that stockholders' equity can change.
  12. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    merchandise inventory
    Merchandise Inventory represents the cost of goods available to be sold in the normal course of business. Merchandise Inventory has future benefit and is, therefore, an asset.
  13. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Accounts Payable
    Liability
  14. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Notes Payable
    Liablility
  15. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Service revenue
    Change to Stockholders' equity (revenue)
  16. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Prepaid insurance
    Asset
  17. Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.

    Dividends
    Change to Stockholders' Equity
  18. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Accounts Payable
    Accounts payable: none of these because it's a liability
  19. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Rent Expense
    Expense
  20. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Service Revenue
    Revenue
  21. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Dividends
    Other changes to stockholders' equity
  22. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Unearned service revenue
    None of these because unearned service revenue is an liability
  23. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Advertising expense
    Expense
  24. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Issuance of stock
    Other changes to Stockholders' equity
  25. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Supplies expense
    Expense
  26. Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:

    Prepaid Insurance
    None of these (asset)
  27. Stockholders' equity can change in four different ways:

    What are the 4 ways??
  28. the corporation issues stock,
    • the corporation pays dividends,
    • revenues are earned, and
    • expenses are incurred.
  29. What are assets?
    Assets are resources that are owned by a business and expected to have future economic benefit
  30. What are Liabilities?
    Liabilities are the debts and obligations of a business that represent claims of creditors.
  31. Identify the financial statement(s) in which the following account would be found.

    Ending Retained Earnings
    Statement of retained earnings And balance sheet
  32. Identify the financial statement(s) in which the following account would be found.

    Dividends
    Statement of retained earnings
  33. Identify the financial statement(s) in which the following account would be found.

    Insurance expense
    Income statement

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