Question 1

Land and buildings are generally recorded in the same ledger account.

Accepted Answer

A) True 
 B)False

Question 2

On December 3, the Matador Company paid $5,400 cash in salaries to office personnel. Prepare the general journal entry to record this transaction.

Accepted Answer

The answer of On December 3, the Matador Company paid...

Question 3

_________________ identify and describe transactions and events and provide objective evidence and amounts for recording.

Accepted Answer

The answer of _________________ identify and describe transactions and events...

Question 4

A company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that:

Accepted Answer

A)  The Office Supplies account balance will be overstated. 
B)  The trial balance will not balance. 
C)  The error will overstate the debits listed in the journal. 
D)  The total debits in the trial balance will be larger than the total credits. 
E)  The trial balance will be in balance. 
A)  The Office Supplies account balance will be overstated. 
B)  The trial balance will not balance. 
C)  The error will overstate the debits listed in the journal. 
D)  The total debits in the trial balance will be larger than the total credits. 
E)  The trial balance will be in balance.

Question 5

_______________ is the process of transferring journal entry information to the ledger.

Accepted Answer

The answer of _______________ is the process of transferring journal...

Question 6

If a company provides services to a customer on credit, the service provider company should credit Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 7

A company that finances a relatively large portion of its assets with liabilities is said to have a high degree of financial leverage.

Accepted Answer

A) True 
 B)False

Question 8

Match between columns
                        Premises:  Balance column account
 Debt ratio
 Account balance
 Chart of accounts
 Ledger
 Journal
 Note payable
 Trial balance
 Credit
 Debit

Accepted Answer

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

Question 9

Explain the difference between a general ledger and a chart of accounts.

Accepted Answer

A ledger is a record containing all of t

Question 10

Misa Chien and Jennifer Green founded Nom Nom Truck. What are some accounting challenges they faced when starting their business?

Accepted Answer

They had to account for many a

Question 11

A ledger is:

Accepted Answer

A)  A record containing all accounts (with amounts) for a business. 
B)  A journal in which transactions are first recorded. 
C)  A collection of documents that describe transactions and events during the accounting process. 
D)  A list of all accounts with their debit balances at a point in time. 
E)  A list of all accounts a company uses and includes an identification number assigned to each account. 
A)  A record containing all accounts (with amounts) for a business. 
B)  A journal in which transactions are first recorded. 
C)  A collection of documents that describe transactions and events during the accounting process. 
D)  A list of all accounts with their debit balances at a point in time. 
E)  A list of all accounts a company uses and includes an identification number assigned to each account.

Question 12

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

Accepted Answer

A) True 
 B)False

Question 13

A ___________________ is a record containing all accounts for a company along with their balances.

Accepted Answer

general le

Question 14

The journal is known as the book of final entry because financial statements are prepared from it.

Accepted Answer

A) True 
 B)False

Question 15

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

Accepted Answer

A) True 
 B)False

Question 16

The following accounts appear on either the income statement (IS) or balance sheet (BS). In the space provided next to each account write the letters IS or BS that identify the statement on which the account appears.

Accepted Answer

The answer of The following accounts appear on either the...

Question 17

Which of the following items would appear on the income statement? Common stock……$120,000 Accounts payable…...$25,000
Cash……………….$116,640 Accounts receivable..$22,450
Supplies………… $ 1,500 Office equipment…...$23,300
Prepaid rent……....$ 3,200 Unearned revenue….$ 4,152
Service revenue..... $ 20,000 Utilities expense…....$ 422
Retained earnings...$ 30,000 Shaving equipment…$31,640

Accepted Answer

A)  Common stock, service revenue, retained earnings, accounts payable, and unearned revenue. 
B)  Cash, supplies, prepaid rent, accounts receivable, office equipment, utilities expense, and shaving equipment. 
C)  Common stock, cash, supplies, prepaid rent, retained earnings, accounts payable, accounts receivable, office equipment, unearned revenue, and shaving equipment. 
D)  Service revenue and utilities expense. 
E)  Service revenue, unearned revenue, and utilities expense. 
A)  Common stock, service revenue, retained earnings, accounts payable, and unearned revenue. 
B)  Cash, supplies, prepaid rent, accounts receivable, office equipment, utilities expense, and shaving equipment. 
C)  Common stock, cash, supplies, prepaid rent, retained earnings, accounts payable, accounts receivable, office equipment, unearned revenue, and shaving equipment. 
D)  Service revenue and utilities expense. 
E)  Service revenue, unearned revenue, and utilities expense.

Question 18

A debit entry is always favorable.

Accepted Answer

A) True 
 B)False

Question 19

Krenz Car Care, which is owned and operated by Karl Krenz, began business as a corporation in September of the current year. Karl, a master mechanic, had no experience with keeping a set of books. As a result, Karl entered all of September's transactions directly to the ledger accounts. When he tried to locate a particular entry he found it to be confusing and time consuming. He has hired you to improve his accounting procedures. The accounts in his general ledger are as follows:

Prepare the general journal entries, in chronological order (a) through (e), from the T-account entries shown. Include a brief description of the probable nature of each transaction.

Accepted Answer

a.
 @#IMG-DLM& b.
 @#IMG-DLM&

Question 20

The Fireside Country Inn is a very popular destination for tourists. The Inn requires guests to make reservations at least two months in advance of their stay. A 20 percent down payment is required at the time the reservation is made. When should this inn recognize room rental revenue?

Accepted Answer

A)  On the date the reservation is received. 
B)  On the date the money for the reservation is received. 
C)  On the date the guests stay in the inn. 
D)  On the date the guests pay the remaining 80 percent due. 
E)  Once all cash has been received. 
A)  On the date the reservation is received. 
B)  On the date the money for the reservation is received. 
C)  On the date the guests stay in the inn. 
D)  On the date the guests pay the remaining 80 percent due. 
E)  Once all cash has been received.

Land and buildings are generally recorded in the same ledger account.

On December 3, the Matador Company paid $5,400 cash in salaries to office personnel. Prepare the general journal entry to record this transaction.

_________________ identify and describe transactions and events and provide objective evidence and amounts for recording.

A company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that:

_______________ is the process of transferring journal entry information to the ledger.

If a company provides services to a customer on credit, the service provider company should credit Accounts Receivable.

A company that finances a relatively large portion of its assets with liabilities is said to have a high degree of financial leverage.

Explain the difference between a general ledger and a chart of accounts.

Misa Chien and Jennifer Green founded Nom Nom Truck. What are some accounting challenges they faced when starting their business?

A ledger is:

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

A ___________________ is a record containing all accounts for a company along with their balances.

The journal is known as the book of final entry because financial statements are prepared from it.

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

The following accounts appear on either the income statement (IS) or balance sheet (BS). In the space provided next to each account write the letters IS or BS that identify the statement on which the account appears.

A debit entry is always favorable.

The Fireside Country Inn is a very popular destination for tourists. The Inn requires guests to make reservations at least two months in advance of their stay. A 20 percent down payment is required at the time the reservation is made. When should this inn recognize room rental revenue?

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

Land and buildings are generally recorded in the same ledger account.

On December 3, the Matador Company paid $5,400 cash in salaries to office personnel. Prepare the general journal entry to record this transaction.

_________________ identify and describe transactions and events and provide objective evidence and amounts for recording.

A company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that:

_______________ is the process of transferring journal entry information to the ledger.

If a company provides services to a customer on credit, the service provider company should credit Accounts Receivable.

A company that finances a relatively large portion of its assets with liabilities is said to have a high degree of financial leverage.

Explain the difference between a general ledger and a chart of accounts.

Misa Chien and Jennifer Green founded Nom Nom Truck. What are some accounting challenges they faced when starting their business?

A ledger is:

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

A ___________________ is a record containing all accounts for a company along with their balances.

The journal is known as the book of final entry because financial statements are prepared from it.

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

The following accounts appear on either the income statement (IS) or balance sheet (BS). In the space provided next to each account write the letters IS or BS that identify the statement on which the account appears.

A debit entry is always favorable.

The Fireside Country Inn is a very popular destination for tourists. The Inn requires guests to make reservations at least two months in advance of their stay. A 20 percent down payment is required at the time the reservation is made. When should this inn recognize room rental revenue?

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