Accounting Tutoring - Acct 2301, UT Arlington

Match the following accounting principles, accounting assumptions, and qualitative characteristics with their descriptions.

Matching Principle - ___________ Recognizes expenses in the same period when they are incurred in generating revenues
Comparability - ___________ The quality that allows decision makers to analyze two or more companies within an industry and look for similarities and differences.
Consistency - ___________ The quality that means that similar accounting methods have been applied over time within a company.
Conservatism - ___________ The guideline that suggests accountants should take special care to not overstate revenues.

For each account listed below, choose its classification:

	Account	Classification
1	Accounts Payable Correct Incorrect
2	Accounts Receivable Correct Incorrect
3	Advertising Expense Correct Incorrect
4	Bonds Payable Correct Incorrect
5	Building Correct Incorrect
6	Capital Stock Correct Incorrect
7	Cash Correct Incorrect
8	Common Stock Correct Incorrect
9	Cost of Goods Sold Correct Incorrect
10	Depreciation Expense Correct Incorrect
11	Dividends Correct Incorrect
12	Service Fees Earned Correct Incorrect
13	Income Tax Expense Correct Incorrect
14	Interest Expense Correct Incorrect
15	Interest Payable Correct Incorrect
16	Interest Revenue Correct Incorrect
17	Inventory Correct Incorrect
18	Investments Correct Incorrect
19	Land Correct Incorrect
20	Notes Payable Correct Incorrect
21	Notes Receivable Correct Incorrect
22	Preferred Stock Correct Incorrect
23	Prepaid Advertising Correct Incorrect
24	Prepaid Insurance Correct Incorrect
25	Prepaid Rent Correct Incorrect
26	Rent Expense Correct Incorrect
27	Retained Earnings Correct Incorrect
28	Salaries Payable Correct Incorrect
29	Sales Revenue Correct Incorrect
30	Service Revenue Correct Incorrect
31	Supplies Correct Incorrect
32	Unearned Revenue Correct Incorrect
33	Utilities Payable Correct Incorrect
34	Wages Expense Correct Incorrect

December 31	Total Assets	Total Liabilities
Year 1	135,000	88,000
Year 2	177,000	92,000

Determine Net Income (or Loss) for Year 2 assuming that dividends paid during the year amounted to $3,000.

Net Income is $41,000.

A company had the following account balances at the end of its first year of operations. Find the missing amounts.

At the end of Year 2, a company has a retained earnings balance of 5,700. Compute the missing amounts in the following table.

	Year 1	Year 2
Beginning retained earnings	4,500	A
Revenues for the year	16,300	15,200
Expenses for the year	B	13,300
Dividends declared	1,000	1,500

	(B) Year 1 Expenses	(A) Year 2 Beginning retained earnings
1.	13,700	2,300
2.	14,500	5,300
3.	17,500	5,700
4.	19,500	6,100
5.	None of the above

	Year 1 Expenses	Year 2 Beginning retained earnings
2.	14,500	5,300