Question 1

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-A vendor for a company's supplies is paid an amount owed on account.

Accepted Answer

This event involves a transaction with an external party (vendor), which means it would be recorded as an external event in the company's accounting records.

Question 2

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Sales Revenue

Accepted Answer

Sales Revenue is an income statement account as it represents revenues earned from the sale of goods or services during a specific period of time.

Question 3

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Prepaid Insurance

Accepted Answer

Prepaid Insurance is an asset, which is a balance sheet account. An income statement account would be a revenue or expense account which can impact the net income of the company.

Question 4

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all.
-An amount owed by a customer

Accepted Answer

Accounts Receivable represents an amount owed by a customer for goods or services provided.

Question 5

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all.
-A plot of land held for speculation

Accepted Answer

GA plot of land held for speculation is considered an investment (C) because it is purchased with the expectation of earning a return. It is also directly categorized as Land (G) because that is the specific type of asset being held.

Question 6

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Income Taxes Payable

Accepted Answer

Income Taxes Payable is a liability account that appears on the balance sheet, representing the amount of taxes owed by the company to the government. It is not an income statement account, as it does not relate to the company's revenues or expenses during a specific period.

Question 7

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Interest Revenue

Accepted Answer

Interest revenue is an income earned by a company for lending money or extending credit to another entity. As it is a revenue, it is reported on the income statement. Therefore, the best choice is B, income statement account.

Question 8

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company transfers work in process to finished goods inventory.

Accepted Answer

The transfer of work in process to finished goods inventory is an internal event as it only involves movement within the company's own systems and assets, and would be recorded in the company's internal accounting records.

Question 9

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all.
-A written obligation to repay a fixed amount, with interest, at some time in the future

Accepted Answer

Notes Payable is a written obligation to repay a fixed amount, with interest, at some time in the future.

Question 10

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Common Stock

Accepted Answer

Common Stock is a balance sheet account as it represents the equity contributed by the shareholders and is reported in the shareholders' equity section of the balance sheet. It is not related to the company's revenue or expenses, which are reported on the income statement.

Question 11

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Income Taxes Expense

Accepted Answer

Income Taxes Expense is an expense account which appears on the income statement. It represents the amount of taxes owed by the company during the period being reported.

Question 12

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Accounts Payable

Accepted Answer

Accounts Payable is a liability account, which is reported on the balance sheet. It reflects the amount a company owes to its vendors or suppliers for goods or services that have been purchased on credit but not yet paid for.

Question 13

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Furniture and Fixtures

Accepted Answer

Furniture and fixtures are long-term assets that are used in the operation of the business and are recorded on the balance sheet. Therefore, it is a balance sheet account.

Question 14

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Cash

Accepted Answer

Cash is a balance sheet account as it represents an asset on the balance sheet. It is not a revenue or expense account that would appear on the income statement.

Question 15

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company hires a new marketing firm for their new product

Accepted Answer

The answer of Identify which of the following would be...

Question 16

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Accounts Receivable

Accepted Answer

Accounts Receivable is a balance sheet account that represents the amount of money owed to a business by its customers for goods or services that have been sold but not yet paid for. It is a part of the current assets section on the balance sheet.

Question 17

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company signs a contract with the marketing firm and pays a retainer.

Accepted Answer

This event involves another entity (the marketing firm) outside of the company, making it an external event. It involves a financial transaction within the company, but that alone does not make it an internal event. So, option B is the correct answer.

Question 18

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company takes a count of the raw materials inventory and finds that an adjustment is needed.

Accepted Answer

The adjustment of raw materials inventory based on a count is an internal event as it involves changes within the company.

Question 19

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Retained Earnings

Accepted Answer

Retained Earnings is a balance sheet account that represents the accumulated profits or losses of a company that have not been distributed to shareholders as dividends. It carries over from one accounting period to the next and is a component of shareholders’ equity (a balance sheet item).

Question 20

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Utilities Expense

Accepted Answer

Utilities Expense is an income statement account as it represents an expense incurred during a certain period of time and is reported on the income statement.

Quiz 3: Processing Accounting Information

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -A vendor for a company's supplies is paid an amount owed on account.

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Sales Revenue

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Prepaid Insurance

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all. -An amount owed by a customer

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all. -A plot of land held for speculation

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Income Taxes Payable

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Interest Revenue

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company transfers work in process to finished goods inventory.

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all. -A written obligation to repay a fixed amount, with interest, at some time in the future

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Common Stock

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Income Taxes Expense

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Accounts Payable

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Furniture and Fixtures

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Cash

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new marketing firm for their new product

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Accounts Receivable

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company signs a contract with the marketing firm and pays a retainer.

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company takes a count of the raw materials inventory and finds that an adjustment is needed.

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Retained Earnings

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Utilities Expense