Question 1

Accounting transactions are initially recorded in the:

Accepted Answer

A) T-account. 
B) ledger. 
C) journal. 
D) financial statements. 
A) T-account. 
B) ledger. 
C) journal. 
D) financial statements.

Question 2

A receptionist worked one month and was paid $3900 on the last day of the month. How does this transaction affect the accounting equation?

Accepted Answer

A) Add $3900 to Cash and add $3900 to Accounts Payable. 
B) Add $3900 to Accounts Receivable and subtract $3900 from Cash. 
C) Add $3900 to Salary Expense and subtract $3900 from Retained Earnings. 
D) Subtract $3900 from Cash and subtract $3900 from Retained Earnings. 
A) Add $3900 to Cash and add $3900 to Accounts Payable. 
B) Add $3900 to Accounts Receivable and subtract $3900 from Cash. 
C) Add $3900 to Salary Expense and subtract $3900 from Retained Earnings. 
D) Subtract $3900 from Cash and subtract $3900 from Retained Earnings.

Question 3

On August 15, a customer paid $5000 for services provided a month earlier. The customer was billed on August 1. How does this transaction affect the accounting equation?

Accepted Answer

A) Add $5000 to Cash and add $5000 to Service Revenue. 
B) Add $5000 to Cash and add $5000 to Retained Earnings. 
C) Add $5000 to Cash and subtract $5000 from Accounts Receivable. 
D) Add $5000 to Accounts Payable and add $5000 to Cash. 
A) Add $5000 to Cash and add $5000 to Service Revenue. 
B) Add $5000 to Cash and add $5000 to Retained Earnings. 
C) Add $5000 to Cash and subtract $5000 from Accounts Receivable. 
D) Add $5000 to Accounts Payable and add $5000 to Cash.

Question 4

Which of the following is a business transaction?

Accepted Answer

A) A company signs a contact for services to be provided during the first quarter of the next fiscal year. 
B) A company pays its employees a year-end bonus. 
C) A company hires a new marketing manager. 
D) A company applies for a mortgage that will be used to purchase a new office building. 
A) A company signs a contact for services to be provided during the first quarter of the next fiscal year. 
B) A company pays its employees a year-end bonus. 
C) A company hires a new marketing manager. 
D) A company applies for a mortgage that will be used to purchase a new office building.

Question 5

Prepare the necessary journal entry(ies)for the following transactions:
2/10/17 Jones Consulting performed services for clients. These clients were billed $2,500.
3/8/17 Jones received full payment from these clients.

Accepted Answer

Prepare the necessary journal entry(ies)

Question 6

A multistep income statement reports different types of income that include:

Accepted Answer

A) sales revenue and service revenue. 
B) income tax expense, utilities expense, rent expense. 
C) operating income, income before income taxes, and net income. 
D) cost of goods sold and operating expenses. 
A) sales revenue and service revenue. 
B) income tax expense, utilities expense, rent expense. 
C) operating income, income before income taxes, and net income. 
D) cost of goods sold and operating expenses.

Question 7

The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $35,000. During the month, Johnny made sales on account of $42,000. The ending balance in the Accounts Receivable account is $32,000. What are cash collections for the month?

Accepted Answer

A) $35,000 
B) $42,000 
C) $45,000 
D) $77,000 
A) $35,000 
B) $42,000 
C) $45,000 
D) $77,000

Question 8

Transaction analysis and the accounting equation have been used to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet. When preparing a statement of cash flows with this spreadsheet, which column would be used?

Accepted Answer

A) Cash 
B) Accounts Receivable 
C) Retained Earnings 
D) Revenue 
A) Cash 
B) Accounts Receivable 
C) Retained Earnings 
D) Revenue

Question 9

Prepare the journal entry(ies)for the following transactions:
5/2/17 Main Street Enterprises purchased office supplies, for $2,000, on account.
6/2/17 Main Street paid for the supplies.

Accepted Answer

Prepare the journal entry(ies)

Question 10

Every journal entry:

Accepted Answer

A) must increase at least one account and decrease at least one account. 
B) must debit at least one account and credit at least one account. 
C) is recorded in either the journal or the ledger. 
D) affects both an income statement account and a balance sheet account. 
A) must increase at least one account and decrease at least one account. 
B) must debit at least one account and credit at least one account. 
C) is recorded in either the journal or the ledger. 
D) affects both an income statement account and a balance sheet account.

Question 11

A business paid $48,000 cash to purchase equipment. The business would:

Accepted Answer

A) debit Equipment for $48,000 and credit Accounts Payable for $48,000. 
B) debit Equipment for $48,000 and credit Cash for $48,000. 
C) debit Cash for $48,000 and credit Notes Payable for $48,000. 
D) debit Accounts Payable for $48,000 and credit Cash for $48,000. 
A) debit Equipment for $48,000 and credit Accounts Payable for $48,000. 
B) debit Equipment for $48,000 and credit Cash for $48,000. 
C) debit Cash for $48,000 and credit Notes Payable for $48,000. 
D) debit Accounts Payable for $48,000 and credit Cash for $48,000.

Question 12

The left hand side of a T account is the debit side and the right hand side is the credit side.

Accepted Answer

A) True 
 B)False

Question 13

An accounts receivable represents the promise of the business to pay a debt.

Accepted Answer

A) True 
 B)False

Question 14

If a company buys inventory on account:

Accepted Answer

A) cash decreases. 
B) accounts payable increases. 
C) net income increases. 
D) total assets remain the same. 
A) cash decreases. 
B) accounts payable increases. 
C) net income increases. 
D) total assets remain the same.

Question 15

Posting accounting transactions avoids the necessity of journalizing transactions.

Accepted Answer

A) True 
 B)False

Question 16

When using the double-entry system of accounting each transaction affects only two accounts.

Accepted Answer

A) True 
 B)False

Question 17

A company purchased supplies of $5000 on account. How does this transaction affect the accounting equation?

Accepted Answer

A) Add $5000 to Supplies and add $5000 to Notes Payable. 
B) Add $5000 to Supplies and subtract $5000 from Cash. 
C) Add $5000 to Supplies Expense and add $5000 to Notes Payable. 
D) Add $5000 to Supplies and add $5000 to Accounts Payable. 
A) Add $5000 to Supplies and add $5000 to Notes Payable. 
B) Add $5000 to Supplies and subtract $5000 from Cash. 
C) Add $5000 to Supplies Expense and add $5000 to Notes Payable. 
D) Add $5000 to Supplies and add $5000 to Accounts Payable.

Question 18

Which of the following items would NOT be included in the journal entry for a transaction?

Accepted Answer

A) the names of the employees involved in recording the transaction 
B) the date the transaction occurred 
C) the titles of the accounts debited 
D) the dollar amount of the transaction 
A) the names of the employees involved in recording the transaction 
B) the date the transaction occurred 
C) the titles of the accounts debited 
D) the dollar amount of the transaction

Question 19

A journal entry that debits Cash and credits Accounts Receivable indicates that:

Accepted Answer

A) payment was received on account. 
B) payment was made on account. 
C) revenue increased. 
D) revenue decreased. 
A) payment was received on account. 
B) payment was made on account. 
C) revenue increased. 
D) revenue decreased.

Question 20

A company received cash in exchange for issuing stock. This transaction increased assets and:

Accepted Answer

A) increased expenses. 
B) increased revenues. 
C) increased liabilities. 
D) increased stockholders' equity. 
A) increased expenses. 
B) increased revenues. 
C) increased liabilities. 
D) increased stockholders' equity.

Accounting transactions are initially recorded in the:

A receptionist worked one month and was paid $3900 on the last day of the month. How does this transaction affect the accounting equation?

On August 15, a customer paid $5000 for services provided a month earlier. The customer was billed on August 1. How does this transaction affect the accounting equation?

Which of the following is a business transaction?

Prepare the necessary journal entry(ies)for the following transactions: 2/10/17 Jones Consulting performed services for clients. These clients were billed $2,500. 3/8/17 Jones received full payment from these clients.

A multistep income statement reports different types of income that include:

The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $35,000. During the month, Johnny made sales on account of $42,000. The ending balance in the Accounts Receivable account is $32,000. What are cash collections for the month?

Transaction analysis and the accounting equation have been used to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet. When preparing a statement of cash flows with this spreadsheet, which column would be used?

Prepare the journal entry(ies)for the following transactions: 5/2/17 Main Street Enterprises purchased office supplies, for $2,000, on account. 6/2/17 Main Street paid for the supplies.

Every journal entry:

A business paid $48,000 cash to purchase equipment. The business would:

The left hand side of a T account is the debit side and the right hand side is the credit side.

An accounts receivable represents the promise of the business to pay a debt.

If a company buys inventory on account:

Posting accounting transactions avoids the necessity of journalizing transactions.

When using the double-entry system of accounting each transaction affects only two accounts.

A company purchased supplies of $5000 on account. How does this transaction affect the accounting equation?

Which of the following items would NOT be included in the journal entry for a transaction?

A journal entry that debits Cash and credits Accounts Receivable indicates that:

A company received cash in exchange for issuing stock. This transaction increased assets and:

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Transaction Analysis

Accounting transactions are initially recorded in the:

A receptionist worked one month and was paid $3900 on the last day of the month. How does this transaction affect the accounting equation?

On August 15, a customer paid $5000 for services provided a month earlier. The customer was billed on August 1. How does this transaction affect the accounting equation?

Which of the following is a business transaction?

Prepare the necessary journal entry(ies)for the following transactions: 2/10/17 Jones Consulting performed services for clients. These clients were billed $2,500. 3/8/17 Jones received full payment from these clients.

A multistep income statement reports different types of income that include:

The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $35,000. During the month, Johnny made sales on account of $42,000. The ending balance in the Accounts Receivable account is $32,000. What are cash collections for the month?

Transaction analysis and the accounting equation have been used to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet. When preparing a statement of cash flows with this spreadsheet, which column would be used?

Prepare the journal entry(ies)for the following transactions: 5/2/17 Main Street Enterprises purchased office supplies, for $2,000, on account. 6/2/17 Main Street paid for the supplies.

Every journal entry:

A business paid $48,000 cash to purchase equipment. The business would:

The left hand side of a T account is the debit side and the right hand side is the credit side.

An accounts receivable represents the promise of the business to pay a debt.

If a company buys inventory on account:

Posting accounting transactions avoids the necessity of journalizing transactions.

When using the double-entry system of accounting each transaction affects only two accounts.

A company purchased supplies of $5000 on account. How does this transaction affect the accounting equation?

Which of the following items would NOT be included in the journal entry for a transaction?

A journal entry that debits Cash and credits Accounts Receivable indicates that:

A company received cash in exchange for issuing stock. This transaction increased assets and:

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The Statement of Cash Flows

Financial Statement Analysis

Filters