Question 1

Match between columns
                        Premises: Journal
T-account
Source documents
Accounting records
Posting
Debit
Double-entry accounting
Account
Ledger
Credit

Accepted Answer

The Answer of An increase in an asset, dividend and is...

Question 2

The debt ratio reflects the risk of a company to both its owners and creditors.

Accepted Answer

A) True 
 B)False

Question 3

A sales invoice:

Accepted Answer

A)  Is a type of use document. 
B)  Is a source document. 
C)  Is not needed by buyers. 
D)  Gives rise to an entry in the accounting process. 
E)  Is not necessary in accounting. 
A)  Is a type of use document. 
B)  Is a source document. 
C)  Is not needed by buyers. 
D)  Gives rise to an entry in the accounting process. 
E)  Is not necessary in accounting.

Question 4

Common Stock normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 5

Listed below are two pieces of information. Where is the best place to locate this information, in the journal or the ledger? 
1. Details of a transaction that took place on October 3.
2) All of the sales activity that took place during the current month.

Accepted Answer

A)  1. Journal 2. Journal 
B)  1. Journal 2. Ledger 
C)  1. Ledger 2. Ledger 
D)  1. Ledger 2. Journal 
E)  This information is only available on the financial statements. 
A)  1. Journal 2. Journal 
B)  1. Journal 2. Ledger 
C)  1. Ledger 2. Ledger 
D)  1. Ledger 2. Journal 
E)  This information is only available on the financial statements.

Question 6

A debit is:

Accepted Answer

A)  An increase in an account. 
B)  The right-hand side of a T-account. 
C)  A decrease in an account. 
D)  The left-hand side of a T-account. 
E)  An increase to a liability account. 
A)  An increase in an account. 
B)  The right-hand side of a T-account. 
C)  A decrease in an account. 
D)  The left-hand side of a T-account. 
E)  An increase to a liability account.

Question 7

A company sends a $1,500 bill to a customer for delivery services rendered. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of A company sends a $1,500 bill to...

Question 8

Other names for the income statement are earnings statement, statement of operations, or profit and loss statement.

Accepted Answer

A) True 
 B)False

Question 9

What is a trial balance? What is its purpose?

Accepted Answer

The trial balance is a list of all of th

Question 10

Rocky Industries received its telephone bill in the amount of $300 and immediately paid it. Rocky's journal entry to record this transaction will include a

Accepted Answer

A)  Debit to Telephone Expense for $300. 
B)  Credit to Accounts Payable for $300. 
C)  Debit to Cash for $300. 
D)  Credit to Telephone Expense for $300. 
E)  Debit to Accounts Payable for $300. 
A)  Debit to Telephone Expense for $300. 
B)  Credit to Accounts Payable for $300. 
C)  Debit to Cash for $300. 
D)  Credit to Telephone Expense for $300. 
E)  Debit to Accounts Payable for $300.

Question 11

The right side of a T-account is a(n):

Accepted Answer

A)  Debit 
B)  Increase 
C)  Credit 
D)  Decrease 
E)  Account balance 
A)  Debit 
B)  Increase 
C)  Credit 
D)  Decrease 
E)  Account balance

Question 12

On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September?

Accepted Answer

A)  $0 balance 
B)  $4,300 debit balance 
C)  $4,300 credit balance 
D)  $5,700 debit balance 
E)  $5,700 credit balance 
A)  $0 balance 
B)  $4,300 debit balance 
C)  $4,300 credit balance 
D)  $5,700 debit balance 
E)  $5,700 credit balance

Question 13

These transactions were completed by the art gallery opened by Zed Bennett. 
A. Bennett started the gallery, Artery, by investing $40,000 cash and equipment valued at $18,000 in exchange for common stock.
B. Purchased $70 of office supplies on credit.
C. Paid $1,200 cash for the receptionist's salary.
D. Sold a painting for an artist and collected a $4,500 cash commission on the sale.
E. Completed an art appraisal and billed the client $200.
What was the balance of the cash account after these transactions were posted?

Accepted Answer

A)  $12,230 
B)  $12,430 
C)  $43,300 
D)  $43,430 
E)  $61,430 
A)  $12,230 
B)  $12,430 
C)  $43,300 
D)  $43,430 
E)  $61,430

Question 14

A compound journal entry affects no more than two accounts.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a TRUE statement concerning a company's financial statements?

Accepted Answer

A)  Balance sheet and income statement data combined contain the complete financial picture of a given company. 
B)  A trial balance is another name for a balance sheet. 
C)  Another name for the income statement is the earnings statement. 
D)  Dividends paid to a company's shareholders are shown on the income statement. 
E)  The balance sheet shows the financial position of a company for a period of time. 
A)  Balance sheet and income statement data combined contain the complete financial picture of a given company. 
B)  A trial balance is another name for a balance sheet. 
C)  Another name for the income statement is the earnings statement. 
D)  Dividends paid to a company's shareholders are shown on the income statement. 
E)  The balance sheet shows the financial position of a company for a period of time.

Question 16

A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable. Assuming this journal entry was posted, what correcting entry (if any) is needed?

Accepted Answer

A)  Debit Cash and credit Accounts Receivable for $72,000 each. 
B)  Debit Cash and credit Accounts Receivable for $144,000 each. 
C)  Credit Cash and debit Accounts Receivable for $72,000 each. 
D)  Credit Cash and debit Accounts Receivable for $144,000 each. 
E)  No correcting entry is needed for this transaction. 
A)  Debit Cash and credit Accounts Receivable for $72,000 each. 
B)  Debit Cash and credit Accounts Receivable for $144,000 each. 
C)  Credit Cash and debit Accounts Receivable for $72,000 each. 
D)  Credit Cash and debit Accounts Receivable for $144,000 each. 
E)  No correcting entry is needed for this transaction.

Question 17

On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?

Accepted Answer

A)  $5,000 
B)  $47,000 
C)  $52,000 
D)  $57,000 
E)  $32,000 
A)  $5,000 
B)  $47,000 
C)  $52,000 
D)  $57,000 
E)  $32,000

Question 18

What is another name for the general journal?

Accepted Answer

A)  The book. 
B)  The ledger. 
C)  The book of original entry. 
D)  The record. 
E)  The account book. 
A)  The book. 
B)  The ledger. 
C)  The book of original entry. 
D)  The record. 
E)  The account book.

Question 19

The balances for the accounts of Lance's Consulting Firm, Inc. for the year ended December 31 are shown below. Each account shown had a normal balance.
$$\begin{array} { l r l r } 
\text { Accounts payable } & \$ 6,400 & \text { Wages expense } & \$ 35,000 \
\text { Accounts receivable } & 7,000 & \text { Rent expense } & 5,000 \
\text { Cash } & 10,000 & \text { Retained earnings } & 68,700 \
\text { Office supplies } & 1,000 & \text { Land } & 53,000 \
\text { Building } & 99,000 & \text { Unearned revenue } & 7,000 \
\text { Supplies expense } & 15,000 & \text { Dividends } & 20,000 \
\text { Consulting revenue } & 150,000 & \text { Common stock } & 12,900
\end{array}$$
Calculate ending retained earnings.

Accepted Answer

$68,700 +

Question 20

The posting process is the link between the _______________ and the _____________.

Accepted Answer

The answer of The posting process is the link between...

The debt ratio reflects the risk of a company to both its owners and creditors.

A sales invoice:

Common Stock normally has a debit balance.

Listed below are two pieces of information. Where is the best place to locate this information, in the journal or the ledger? 1. Details of a transaction that took place on October 3. 2) All of the sales activity that took place during the current month.

A debit is:

A company sends a $1,500 bill to a customer for delivery services rendered. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Other names for the income statement are earnings statement, statement of operations, or profit and loss statement.

What is a trial balance? What is its purpose?

Rocky Industries received its telephone bill in the amount of $300 and immediately paid it. Rocky's journal entry to record this transaction will include a

The right side of a T-account is a(n):

On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September?

A compound journal entry affects no more than two accounts.

Which of the following is a TRUE statement concerning a company's financial statements?

A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable. Assuming this journal entry was posted, what correcting entry (if any) is needed?

On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?

What is another name for the general journal?

The posting process is the link between the ___ and the _.

Introducing Financial Accounting

Preparing Financial Statements

Accounting for Merchandising Operations

Accounting for Inventories

Accounting for Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Accounting for Equity

Accounting for Cash Flows

Interpreting Financial Statements

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 2: Accounting for Transactions

The debt ratio reflects the risk of a company to both its owners and creditors.

A sales invoice:

Common Stock normally has a debit balance.

Listed below are two pieces of information. Where is the best place to locate this information, in the journal or the ledger? 1. Details of a transaction that took place on October 3. 2) All of the sales activity that took place during the current month.

A debit is:

A company sends a $1,500 bill to a customer for delivery services rendered. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Other names for the income statement are earnings statement, statement of operations, or profit and loss statement.

What is a trial balance? What is its purpose?

Rocky Industries received its telephone bill in the amount of $300 and immediately paid it. Rocky's journal entry to record this transaction will include a

The right side of a T-account is a(n):

On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September?

A compound journal entry affects no more than two accounts.

Which of the following is a TRUE statement concerning a company's financial statements?

A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable. Assuming this journal entry was posted, what correcting entry (if any) is needed?

On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?

What is another name for the general journal?

The posting process is the link between the _______________ and the _____________.

Introducing Financial Accounting

Preparing Financial Statements

Accounting for Merchandising Operations

Accounting for Inventories

Accounting for Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Accounting for Equity

Accounting for Cash Flows

Interpreting Financial Statements

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

The posting process is the link between the ___ and the _.