Question 1

A credit means:

Accepted Answer

A)  the event had a favorable impact on the entity's financial statements. 
B)  the event had an unfavorable impact on the entity's financial statements. 
C)  the event had an effect on the right side of the T-account. 
D)  the event had an effect on the liabilities. 
A)  the event had a favorable impact on the entity's financial statements. 
B)  the event had an unfavorable impact on the entity's financial statements. 
C)  the event had an effect on the right side of the T-account. 
D)  the event had an effect on the liabilities.

Question 2

Inferex Corporation
The following transactions were incurred by the Inferex Corporation during June 2012.
   Refer to the information presented for Inferex Corporation. Indicate the economic effects of each transaction above on the accounting equation. Use the following format for your answers. Show the dollar amounts in the appropriate columns and use a plus (+) sign to indicate an increase and a minus (-) sign to indicate a decrease.

Accepted Answer

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

Question 3

Four journal entries are presented below. Write an explanation for each entry.

Accepted Answer

A)	Cash received for services provided t

Question 4

The Regent Company purchased equipment for $100,000 cash. What is the effect on assets?

Accepted Answer

A)  Increase 
B)  Decrease 
C)  No net effect 
D)  Cannot be determined from this limited information. 
A)  Increase 
B)  Decrease 
C)  No net effect 
D)  Cannot be determined from this limited information.

Question 5

Which of the following statements is true regarding economic events?

Accepted Answer

A)  The signing of a service contract is an example of an external event that is recorded in the accounting records. 
B)  Every event which affects an entity can be identified from a source document. 
C)  All internal and external events must be measured with sufficient reliability. 
D)  External events involve exchanges between an entity and another entity outside the company. 
A)  The signing of a service contract is an example of an external event that is recorded in the accounting records. 
B)  Every event which affects an entity can be identified from a source document. 
C)  All internal and external events must be measured with sufficient reliability. 
D)  External events involve exchanges between an entity and another entity outside the company.

Question 6

Bravada Enterprises 
Transactions for Bravada Enterprises are provided below.
 
- Refer to the transactions that occurred at Bravada Enterprises. Based on these transactions, what is the total amount of expenses that should appear on Bravada's income statement for September?

Accepted Answer

A)  $ 430 
B)  $ 850 
C)  $1,080 
D)  $1,440 
A)  $ 430 
B)  $ 850 
C)  $1,080 
D)  $1,440

Question 7

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 15th transaction?

Accepted Answer

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

Question 8

When a firm borrows money, one effect on the accounting equation is a(n):

Accepted Answer

A)  decrease in contributed capital 
B)  increase in assets 
C)  decrease in liabilities 
D)  decrease in assets 
A)  decrease in contributed capital 
B)  increase in assets 
C)  decrease in liabilities 
D)  decrease in assets

Question 9

All of the following accounts have normal credit balances except:

Accepted Answer

A)  Accounts payable. 
B)  Unearned revenue. 
C)  Common stock. 
D)  Inventory. 
A)  Accounts payable. 
B)  Unearned revenue. 
C)  Common stock. 
D)  Inventory.

Question 10

The chronological record in which transactions are initially recorded in the order in which they occur is called a:

Accepted Answer

A)  balance sheet. 
B)  chart of accounts. 
C)  trial balance. 
D)  general journal. 
A)  balance sheet. 
B)  chart of accounts. 
C)  trial balance. 
D)  general journal.

Question 11

The telephone bill for the current period is received and recorded, but payment will be made later. 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 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 12

The two-column record used to accumulate increases and decreases for individual assets, liabilities, equity, revenue, expense, and dividends items is a:

Accepted Answer

A)  chart of accounts. 
B)  T-account. 
C)  trial balance. 
D)  posting. 
A)  chart of accounts. 
B)  T-account. 
C)  trial balance. 
D)  posting.

Question 13

A(n) ____________________ is a chronological record of all transactions entered into by a business.

Accepted Answer

The answer of A(n) ____________________ is a chronological record of...

Question 14

Which pair of accounts has the same set of rules for debit and credit entries?

Accepted Answer

A)  Common stock and Accounts payable 
B)  Salaries expense and Retained earnings 
C)  Cash and Notes payable 
D)  Sales revenue and Accounts receivable 
A)  Common stock and Accounts payable 
B)  Salaries expense and Retained earnings 
C)  Cash and Notes payable 
D)  Sales revenue and Accounts receivable

Question 15

Lang Industries provided services to customers then sent invoices for the amounts owed. 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 decrease and contributed capital increases 
D)  Assets and liabilities decrease 
A)  Assets and liabilities increase 
B)  Assets and retained earnings increase 
C)  Liabilities decrease and contributed capital increases 
D)  Assets and liabilities decrease

Question 16

For liabilities, equity, and revenue accounts, debit entries represent ____________________.

Accepted Answer

The answer of For liabilities, equity, and revenue accounts, debit...

Question 17

A list of all active accounts and their balances at a particular date, which is used to prove the equality of debits and credits, is called a:

Accepted Answer

A)  chart of accounts. 
B)  general ledger. 
C)  general journal. 
D)  trial balance. 
A)  chart of accounts. 
B)  general ledger. 
C)  general journal. 
D)  trial balance.

Question 18

Inferex Corporation
The following transactions were incurred by the Inferex Corporation during June 2012.
  
-
Refer to the information presented for Inferex Corporation. Record each transaction in proper journal entry format in the journal provided. A written explanation for each journal entry is not required.

Accepted Answer

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

Question 19

The normal balance of a revenue account is a ____________________.

Accepted Answer

The answer of The normal balance of a revenue account...

Question 20

Which pair of accounts has the same set of rules for debit and credit entries?

Accepted Answer

A)  Service revenue and Rent expense 
B)  Dividends and Retained earnings 
C)  Equipment and Salaries expense 
D)  Accounts receivable and Accounts payable 
A)  Service revenue and Rent expense 
B)  Dividends and Retained earnings 
C)  Equipment and Salaries expense 
D)  Accounts receivable and Accounts payable

A credit means:

Four journal entries are presented below. Write an explanation for each entry.

The Regent Company purchased equipment for $100,000 cash. What is the effect on assets?

Which of the following statements is true regarding economic events?

Bravada Enterprises Transactions for Bravada Enterprises are provided below. - Refer to the transactions that occurred at Bravada Enterprises. Based on these transactions, what is the total amount of expenses that should appear on Bravada's income statement for September?

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 15th transaction?

When a firm borrows money, one effect on the accounting equation is a(n):

All of the following accounts have normal credit balances except:

The chronological record in which transactions are initially recorded in the order in which they occur is called a:

The telephone bill for the current period is received and recorded, but payment will be made later. What effect does this transaction have on the accounting equation?

The two-column record used to accumulate increases and decreases for individual assets, liabilities, equity, revenue, expense, and dividends items is a:

A(n) ____________________ is a chronological record of all transactions entered into by a business.

Which pair of accounts has the same set of rules for debit and credit entries?

Lang Industries provided services to customers then sent invoices for the amounts owed. What effect does this transaction have on the accounting equation?

For liabilities, equity, and revenue accounts, debit entries represent ____________________.

A list of all active accounts and their balances at a particular date, which is used to prove the equality of debits and credits, is called a:

The normal balance of a revenue account is a ____________________.

Which pair of accounts has the same set of rules for debit and credit entries?

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

A credit means:

Four journal entries are presented below. Write an explanation for each entry.

The Regent Company purchased equipment for $100,000 cash. What is the effect on assets?

Which of the following statements is true regarding economic events?

Bravada Enterprises Transactions for Bravada Enterprises are provided below. - Refer to the transactions that occurred at Bravada Enterprises. Based on these transactions, what is the total amount of expenses that should appear on Bravada's income statement for September?

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 15th transaction?

When a firm borrows money, one effect on the accounting equation is a(n):

All of the following accounts have normal credit balances except:

The chronological record in which transactions are initially recorded in the order in which they occur is called a:

The telephone bill for the current period is received and recorded, but payment will be made later. What effect does this transaction have on the accounting equation?

The two-column record used to accumulate increases and decreases for individual assets, liabilities, equity, revenue, expense, and dividends items is a:

A(n) ____________________ is a chronological record of all transactions entered into by a business.

Which pair of accounts has the same set of rules for debit and credit entries?

Lang Industries provided services to customers then sent invoices for the amounts owed. What effect does this transaction have on the accounting equation?

For liabilities, equity, and revenue accounts, debit entries represent ____________________.

A list of all active accounts and their balances at a particular date, which is used to prove the equality of debits and credits, is called a:

The normal balance of a revenue account is a ____________________.

Which pair of accounts has the same set of rules for debit and credit entries?

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