Chapter 2, Problem 2ISTQ

Classify the accounts listed below by matching the account name with one of the following financial statementsections in which the account would be reported:a. Current Assetsb. Fixed Assetsc. Intangible Assetsd. Current Liabilitye. Long-Term Liabilityf. Owners’ Equityg. Revenuesh. Operating Expensesi. Other Income/Expense____ 31. Buildings____ 32. Accumulated Depreciation - Buildings____ 33. Depreciation Expense____ 34. Trademarks____ 35. Amortization Expense____ 36. Repairs Expense____ 37. Land Improvements____ 38. Gain on sale of equipment____ 39. Loss on disposal of asset____ 40. Loss from Impaired Goodwill

State the normal balances for the following accounts: a. Assets b. Liabilities c. Capital d. Drawing e. Revenue/Sales f. Expenses and  Briefly explaining how revenue/sales, expenses and drawings affect owner’s capital/equity.

Which one of the following can the accounting equation can be rewritten as? A Assets + profit – drawings – liabilities = closing capital B Assets – liabilities – drawings = opening capital + profit C Assets – liabilities – opening capital + drawings = profit D Assets – profit – drawings = closing capital – liabilities

The accounting equation can be expressed as: 1. Assets + Liabilities = Owner’s equity 2. Owners equity- Asset = Liabilities 3. Assets = Liabilities- owners equity 4. Asssest - liabilities = owner’s equity

Which of the following is the correct formula for calculating rate of return on total​ assets?   A. ​(Net income minus− Interest​ expense) / Average total asset   B. Total equity​ / Total assets   C. ​(Net income​ + Interest​ expense) / Average total assets   D. ​(Net income minus− Interest​ expense) / Total assets

From othe basic accounting equation Assets = Liabilities + Owners Equity, where does uncollectible accounts belong?

The balance sheet lists which of the following? revenues, expenses, gains, and distributions to owners assets, liabilities, and owners' equity assets, liabilities, and investments by owners revenues, expenses, gains, and losses

B4.

The expense recognition principle (“matching”) controlsa. Where on the income statement expenses should bepresented.b. When revenues are recognized on the incomestatement.c. The ordering of current assets and current liabilities onthe balance sheet.d. When costs are recognized as expenses on the incomestatement.