Question 1

Credit entries are used to:

Accepted Answer

A)  increase asset accounts. 
B)  increase liability accounts. 
C)  increase expense accounts. 
D)  increase dividends. 
A)  increase asset accounts. 
B)  increase liability accounts. 
C)  increase expense accounts. 
D)  increase dividends.

Question 2

The process of transferring amounts from the book of original entry into the ledger is referred to as:

Accepted Answer

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

Question 3

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 4

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

Accepted Answer

A)  Assets increase only when cash sales are collected. 
B)  Stockholders' equity increases only when credit sales are made. 
C)  Assets and stockholders' equity increase when either cash or credit sales are made. 
D)  Assets increase and stockholders' equity decreases when either cash or credit sales are made. 
A)  Assets increase only when cash sales are collected. 
B)  Stockholders' equity increases only when credit sales are made. 
C)  Assets and stockholders' equity increase when either cash or credit sales are made. 
D)  Assets increase and stockholders' equity decreases when either cash or credit sales are made.

Question 5

Hesson Properties, Inc. 
Transactions for Hesson Properties are provided below.
 
- Refer to the transactions that occurred at Hesson Properties. Based on these transactions, how much is still owed to Hesson from its customers at the end of November?

Accepted Answer

A)  -0- 
B)  $250 
C)  $500 
D)  $700 
A)  -0- 
B)  $250 
C)  $500 
D)  $700

Question 6

Bravada Enterprises 
Transactions for Bravada Enterprises are provided below.
  
-Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 15th transaction will include a debit of $2,000 to:

Accepted Answer

A)  Salaries expense. 
B)  Salaries payable. 
C)  Prepaid expenses. 
D)  Accounts payable. 
A)  Salaries expense. 
B)  Salaries payable. 
C)  Prepaid expenses. 
D)  Accounts payable.

Question 7

Payment is made for the telephone bill which was recorded previously. What effect does this transaction have on the accounting equation?

Accepted Answer

A)  Assets and liabilities increase 
B)  Assets and retained earnings increase 
C)  Liabilities increase and contributed capital decreases 
D)  Assets and liabilities decrease 
A)  Assets and liabilities increase 
B)  Assets and retained earnings increase 
C)  Liabilities increase and contributed capital decreases 
D)  Assets and liabilities decrease

Question 8

The ____________________ is the file or book that contains both the activity and balances of all company accounts.

Accepted Answer

The answer of The ____________________ is the file or book...

Question 9

The feature of accounting in which means that there are at least two accounts affected in every transaction so that the accounting equation stays in balance is called:

Accepted Answer

A)  the matching feature. 
B)  the classifying feature. 
C)  the dual nature of accounting. 
D)  the full disclosure principle. 
A)  the matching feature. 
B)  the classifying feature. 
C)  the dual nature of accounting. 
D)  the full disclosure principle.

Question 10

Clay and Lora each invest $15,000 in Deyer, Inc. and are given shares of stock as evidence of their ownership interest. What effect does this transaction have on the accounting equation of Deyer?

Accepted Answer

A)  Assets and liabilities increase 
B)  Assets and contributed capital increase 
C)  Liabilities increase and retained earnings decrease 
D)  Assets and liabilities decrease 
A)  Assets and liabilities increase 
B)  Assets and contributed capital increase 
C)  Liabilities increase and retained earnings decrease 
D)  Assets and liabilities decrease

Question 11

Bravada Enterprises 
Transactions for Bravada Enterprises are provided below.
 
- Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 1st transaction will include a debit of $2,200 to:

Accepted Answer

A)  Service revenue. 
B)  Cash. 
C)  Accounts receivable. 
D)  Retained earnings. 
A)  Service revenue. 
B)  Cash. 
C)  Accounts receivable. 
D)  Retained earnings.

Question 12

Which of the following financial reports determines if the accounting equation is in balance?

Accepted Answer

A)  Journal entry 
B)  Income statement 
C)  Trial balance 
D)  Account reconciliation 
A)  Journal entry 
B)  Income statement 
C)  Trial balance 
D)  Account reconciliation

Question 13

The correct term for the entry made on the left side of a T-account is:

Accepted Answer

A)  debit. 
B)  credit. 
C)  posting. 
D)  journalizing. 
A)  debit. 
B)  credit. 
C)  posting. 
D)  journalizing.

Question 14

Which of the following transactions does not affect the total assets of Dusty Knoll Inc.?

Accepted Answer

A)  The bills are received for last month's utilities 
B)  Dividends are paid to stockholders 
C)  Customers are billed for services provided on credit 
D)  A new automobile is purchased on credit 
A)  The bills are received for last month's utilities 
B)  Dividends are paid to stockholders 
C)  Customers are billed for services provided on credit 
D)  A new automobile is purchased on credit

Question 15

The payment of salaries to employees will debit salaries expense account and credit ____________________.

Accepted Answer

Chapter 3-

Question 16

The list of accounts presented below are from the accounting records of Grammerle, Inc. on September 30, 2011. Assume that each account balance is normal, and present them in proper trial balance format.

Accepted Answer

The answer of The list of accounts presented below are...

Question 17

What type of account is increased with a debit but is a decrease to retained earnings?

Accepted Answer

A)  Liability 
B)  Asset 
C)  Revenue 
D)  Expense 
A)  Liability 
B)  Asset 
C)  Revenue 
D)  Expense

Question 18

For assets, expenses, and dividend accounts, credit entries represent ____________________.

Accepted Answer

The answer of For assets, expenses, and dividend accounts, credit...

Question 19

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 8th transaction?

Accepted Answer

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

Question 20

Payment is made for machinery purchased previously on credit. What effect does this transaction have on the accounting equation?

Accepted Answer

A)  Assets and liabilities increase 
B)  Assets and contributed capital increase 
C)  Liabilities decrease and retained earnings increase 
D)  Assets and liabilities decrease 
A)  Assets and liabilities increase 
B)  Assets and contributed capital increase 
C)  Liabilities decrease and retained earnings increase 
D)  Assets and liabilities decrease

Credit entries are used to:

The process of transferring amounts from the book of original entry into the ledger is referred to as:

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.

Which of the following statements best describes the effects of recognizing revenue earned 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, how much is still owed to Hesson from its customers at the end of November?

Bravada Enterprises Transactions for Bravada Enterprises are provided below. -Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 15th transaction will include a debit of $2,000 to:

Payment is made for the telephone bill which was recorded previously. What effect does this transaction have on the accounting equation?

The ____________________ is the file or book that contains both the activity and balances of all company accounts.

The feature of accounting in which means that there are at least two accounts affected in every transaction so that the accounting equation stays in balance is called:

Clay and Lora each invest $15,000 in Deyer, Inc. and are given shares of stock as evidence of their ownership interest. What effect does this transaction have on the accounting equation of Deyer?

Bravada Enterprises Transactions for Bravada Enterprises are provided below. - Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 1st transaction will include a debit of $2,200 to:

Which of the following financial reports determines if the accounting equation is in balance?

The correct term for the entry made on the left side of a T-account is:

Which of the following transactions does not affect the total assets of Dusty Knoll Inc.?

The payment of salaries to employees will debit salaries expense account and credit ____________________.

The list of accounts presented below are from the accounting records of Grammerle, Inc. on September 30, 2011. Assume that each account balance is normal, and present them in proper trial balance format.

What type of account is increased with a debit but is a decrease to retained earnings?

For assets, expenses, and dividend accounts, credit entries represent ____________________.

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 8th transaction?

Payment is made for machinery purchased previously on credit. What effect does this transaction have on the accounting equation?

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

Credit entries are used to:

The process of transferring amounts from the book of original entry into the ledger is referred to as:

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.

Which of the following statements best describes the effects of recognizing revenue earned 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, how much is still owed to Hesson from its customers at the end of November?

Bravada Enterprises Transactions for Bravada Enterprises are provided below. -Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 15th transaction will include a debit of $2,000 to:

Payment is made for the telephone bill which was recorded previously. What effect does this transaction have on the accounting equation?

The ____________________ is the file or book that contains both the activity and balances of all company accounts.

The feature of accounting in which means that there are at least two accounts affected in every transaction so that the accounting equation stays in balance is called:

Clay and Lora each invest $15,000 in Deyer, Inc. and are given shares of stock as evidence of their ownership interest. What effect does this transaction have on the accounting equation of Deyer?

Bravada Enterprises Transactions for Bravada Enterprises are provided below. - Refer to the transactions that occurred at Bravada Enterprises. The journal entry to record the September 1st transaction will include a debit of $2,200 to:

Which of the following financial reports determines if the accounting equation is in balance?

The correct term for the entry made on the left side of a T-account is:

Which of the following transactions does not affect the total assets of Dusty Knoll Inc.?

The payment of salaries to employees will debit salaries expense account and credit ____________________.

The list of accounts presented below are from the accounting records of Grammerle, Inc. on September 30, 2011. Assume that each account balance is normal, and present them in proper trial balance format.

What type of account is increased with a debit but is a decrease to retained earnings?

For assets, expenses, and dividend accounts, credit entries represent ____________________.

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 8th transaction?

Payment is made for machinery purchased previously on credit. What effect does this transaction have on the accounting equation?

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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