Question 1

Which of the following statements regarding a company's operating activities is true?

Accepted Answer

A)  Revenues decrease stockholders' equity 
B)  Expenses increase stockholders' equity 
C)  Expenses decrease stockholders' equity 
D)  Dividends decrease assets 
A)  Revenues decrease stockholders' equity 
B)  Expenses increase stockholders' equity 
C)  Expenses decrease stockholders' equity 
D)  Dividends decrease assets C

Question 2

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances.   Prepare a trial balance. The total of the debits is:

Accepted Answer

A)  $16,500. 
B)  $13,400. 
C)  $12,100. 
D)  $9,600. 
A)  $16,500. 
B)  $13,400. 
C)  $12,100. 
D)  $9,600. A

Question 3

Bellarim Corporation made cash sales to customers. What effect does this transaction have on the accounting equation?

Accepted Answer

A)  Liabilities and retained earnings increase 
B)  Assets and liabilities increase 
C)  Assets and retained earnings increase 
D)  There is no net effect on the accounting equation, as one asset account increases while another asset account decreases. 
A)  Liabilities and retained earnings increase 
B)  Assets and liabilities increase 
C)  Assets and retained earnings increase 
D)  There is no net effect on the accounting equation, as one asset account increases while another asset account decreases. C

Question 4

Randomly listed below are the steps for preparing a trial balance:   What is the proper order of these steps?

Accepted Answer

A)  (3), (2), (4), and (1) 
B)  (2), (3), (4), and (1) 
C)  (3), (2), (1), and (4) 
D)  (4), (3), (2), and (1) 
A)  (3), (2), (4), and (1) 
B)  (2), (3), (4), and (1) 
C)  (3), (2), (1), and (4) 
D)  (4), (3), (2), and (1)

Question 5

The ____________________ side of a liability account is used to record decreases in the account balance.

Accepted Answer

The answer of The ____________________ side of a liability account...

Question 6

Which of the following statements is true?

Accepted Answer

A)  If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger. 
B)  If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. 
C)  Posting occurs when numbers in the general ledger accounts are transferred to the general journal. 
D)  If the sum of the debit balances equals the sum of the credit balances, this proves that there were no mistakes made in the posting process. 
A)  If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger. 
B)  If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. 
C)  Posting occurs when numbers in the general ledger accounts are transferred to the general journal. 
D)  If the sum of the debit balances equals the sum of the credit balances, this proves that there were no mistakes made in the posting process.

Question 7

Debit entries are used to:

Accepted Answer

A)  increase asset accounts. 
B)  increase revenue accounts. 
C)  increase liability accounts. 
D)  increase stockholders' equity. 
A)  increase asset accounts. 
B)  increase revenue accounts. 
C)  increase liability accounts. 
D)  increase stockholders' equity.

Question 8

The term for the process of recording accounting transactions in the general journal is:

Accepted Answer

A)  analyzing. 
B)  journalizing. 
C)  posting. 
D)  classifying. 
A)  analyzing. 
B)  journalizing. 
C)  posting. 
D)  classifying.

Question 9

Which of the following best describes one effect of recognizing expenses incurred by a business entity?

Accepted Answer

A)  Assets will increase 
B)  Liabilities will decrease 
C)  Contributed capital will decrease 
D)  Retained earnings will decrease 
A)  Assets will increase 
B)  Liabilities will decrease 
C)  Contributed capital will decrease 
D)  Retained earnings will decrease

Question 10

Hesson Properties, Inc. 
Transactions for Hesson Properties are provided below.
 
- Refer to the transactions that occurred at Hesson Properties. Based on these transactions, what is the journal entry to record the November 1st transaction?

Accepted Answer

A)  
  
B)  
  
C)  
  
D)  
  
A)  
  
B)  
  
C)  
  
D)

Question 11

Several terms which represent components of an accounting system are listed below. For each term, write a brief explanation of how that component is used in the accounting cycle.

Accepted Answer

The answer of Several terms which represent components of an...

Question 12

Several transactions are listed below, with the accounting equation stated to the right side of each. Use the following identification codes to indicate the effects of each transaction on the accounting equation: I = Increase; D = Decrease; NE = No net effect. Write your answers in the space provided under the accounting equation, being sure to include an identification code for each element of the accounting equation. An example is provided before the first transaction.

Accepted Answer

The answer of Several transactions are listed below, with the...

Question 13

An account is said to have a debit balance if:

Accepted Answer

A)  the amount of the debits exceeds the amount of the credits. 
B)  there are more entries on the debit side than on the credit side. 
C)  its normal balance is debit without regard to the amounts or number of entries on the debit side. 
D)  the first entry of the accounting period was posted on the debit side. 
A)  the amount of the debits exceeds the amount of the credits. 
B)  there are more entries on the debit side than on the credit side. 
C)  its normal balance is debit without regard to the amounts or number of entries on the debit side. 
D)  the first entry of the accounting period was posted on the debit side.

Question 14

Inferex Corporation
The following transactions were incurred by the Inferex Corporation during June 2012.
   Refer to the information presented for Inferex Corporation. Prepare a trial balance in proper format. Assume that Inferex had no additional accounts or balances other than those created from the June transactions.

Accepted Answer

The answer of Inferex Corporation
The following transactions were incurred by...

Question 15

Inferex Corporation
The following transactions were incurred by the Inferex Corporation during June 2012.
  
-
Refer to the information presented for Inferex Corporation. Prepare a trial balance in proper format. Assume that Inferex had no additional accounts or balances other than those created from the June transactions.

Accepted Answer

Inferex Co

Question 16

The purchase of office equipment on credit has what effect on the accounting equation?

Accepted Answer

A)  Assets and stockholders' equity decrease 
B)  Liabilities increase and stockholders' equity decreases 
C)  Assets and liabilities increase 
D)  Assets and liabilities decrease 
A)  Assets and stockholders' equity decrease 
B)  Liabilities increase and stockholders' equity decreases 
C)  Assets and liabilities increase 
D)  Assets and liabilities decrease

Question 17

The accountant for Brumley Solutions, Inc. made the following errors while recording transactions for the period:
  
Indicate whether or not the debit and credit columns of Brumley's trial balance will be equal after recording each of these erroneous entries. Then identify the account(s) that will be misstated as a result of these errors and the direction of the misstatement (i.e., understatement or overstatement).

Accepted Answer

Indicate whether or not the debit and cr

Question 18

Which of the following statements is true?

Accepted Answer

A)  An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account. 
B)  The posting of an amount recorded in the general ledger can be verified by referring to the account number listed in the posting reference column on that line in the general journal. 
C)  Business transactions are recorded first in the general ledger, then that information is transferred to the general journal. 
D)  No explanation is needed for any entry in the general journal. 
A)  An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account. 
B)  The posting of an amount recorded in the general ledger can be verified by referring to the account number listed in the posting reference column on that line in the general journal. 
C)  Business transactions are recorded first in the general ledger, then that information is transferred to the general journal. 
D)  No explanation is needed for any entry in the general journal.

Question 19

Presented below are several accounts from the financial statements of Byron, Inc. for the year ended December 31, 2011:
   Each of Byron's accounts has been assigned an identification number which you will use as answers for the transactions described below. Enter the account numbers in the blank spaces under the headings Debit and Credit to indicate the accounts debited and credited when each transaction is recorded in a general journal.

Accepted Answer

The answer of Presented below are several accounts from the...

Question 20

An entry made to the right side of an account is always a(n):

Accepted Answer

A)  debit. 
B)  credit. 
C)  increase. 
D)  decrease. 
A)  debit. 
B)  credit. 
C)  increase. 
D)  decrease.

Which of the following statements regarding a company's operating activities is true?

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances. Prepare a trial balance. The total of the debits is:

Bellarim Corporation made cash sales to customers. What effect does this transaction have on the accounting equation?

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

The ____________________ side of a liability account is used to record decreases in the account balance.

Which of the following statements is true?

Debit entries are used to:

The term for the process of recording accounting transactions in the general journal is:

Which of the following best describes one effect of recognizing expenses incurred by a business entity?

Hesson Properties, Inc. Transactions for Hesson Properties are provided below. - Refer to the transactions that occurred at Hesson Properties. Based on these transactions, what is the journal entry to record the November 1st transaction?

Several terms which represent components of an accounting system are listed below. For each term, write a brief explanation of how that component is used in the accounting cycle.

An account is said to have a debit balance if:

The purchase of office equipment on credit has what effect on the accounting equation?

Which of the following statements is true?

An entry made to the right side of an account is always a(n):

Financial Accounting

Corporate Financial Statements

Accrual Accounting and Adjusting Entries

Internal Control and Cash

Receivables

Inventory

Fixed Assets and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: Recording Accounting Transactions

Which of the following statements regarding a company's operating activities is true?

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances. Prepare a trial balance. The total of the debits is:

Bellarim Corporation made cash sales to customers. What effect does this transaction have on the accounting equation?

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

The ____________________ side of a liability account is used to record decreases in the account balance.

Which of the following statements is true?

Debit entries are used to:

The term for the process of recording accounting transactions in the general journal is:

Which of the following best describes one effect of recognizing expenses incurred by a business entity?

Hesson Properties, Inc. Transactions for Hesson Properties are provided below. - Refer to the transactions that occurred at Hesson Properties. Based on these transactions, what is the journal entry to record the November 1st transaction?

Several terms which represent components of an accounting system are listed below. For each term, write a brief explanation of how that component is used in the accounting cycle.

An account is said to have a debit balance if:

The purchase of office equipment on credit has what effect on the accounting equation?

Which of the following statements is true?

An entry made to the right side of an account is always a(n):

Financial Accounting

Corporate Financial Statements

Accrual Accounting and Adjusting Entries

Internal Control and Cash

Receivables

Inventory

Fixed Assets and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Filters