Question 1

A three column form of account is so named because it has columns for

Accepted Answer

A)  debit, credit, and account name. 
B)  debit, credit, and reference. 
C)  debit, credit, and balance. 
D)  debit, credit, and date. 
A)  debit, credit, and account name. 
B)  debit, credit, and reference. 
C)  debit, credit, and balance. 
D)  debit, credit, and date.

Question 2

At October 1, 2014, Padilla Industries had an accounts payable balance of $60,000. During the month, the company made purchases on account of $50,000 and made payments on account of $80,000. At October 31, 2014, the accounts payable balance is

Accepted Answer

A)  $60,000. 
B)  $20,000. 
C)  $30,000. 
D)  $80,000. 
A)  $60,000. 
B)  $20,000. 
C)  $30,000. 
D)  $80,000.

Question 3

A debit to an asset account indicates

Accepted Answer

A)  an error. 
B)  a credit was made to a liability account. 
C)  a decrease in the asset. 
D)  an increase in the asset. 
A)  an error. 
B)  a credit was made to a liability account. 
C)  a decrease in the asset. 
D)  an increase in the asset.

Question 4

Another name for the journal is the

Accepted Answer

A)  listing. 
B)  book of original entry. 
C)  book of accounts. 
D)  book of source documents. 
A)  listing. 
B)  book of original entry. 
C)  book of accounts. 
D)  book of source documents.

Question 5

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.

Accepted Answer

The answer of During an accounting period, a business has...

Question 6

Indicate for each debit and each credit: (a) whether an asset, liability, equity, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased. Answers should be presented in the following chart form:

Accepted Answer

The answer of Indicate for each debit and each credit:...

Question 7

During February 2014, its first month of operations, the owner of Alona Enterprises invested cash of $75,000. Alona had cash revenues of $12,000 and paid expenses of $21,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

Accepted Answer

A)  $9,000 credit 
B)  $66,000 debit 
C)  $87,000 debit 
D)  $54,000 credit 
A)  $9,000 credit 
B)  $66,000 debit 
C)  $87,000 debit 
D)  $54,000 credit

Question 8

The expanded accounting equation under GAAP is as follows

Accepted Answer

The answer of The expanded accounting equation under GAAP is...

Question 9

The standard format of a journal would not include

Accepted Answer

A)  a reference column. 
B)  an account title column. 
C)  a T-account. 
D)  a date column. 
A)  a reference column. 
B)  an account title column. 
C)  a T-account. 
D)  a date column.

Question 10

An account is an individual accounting record of increases and decreases in specific

Accepted Answer

A)  liabilities. 
B)  assets. 
C)  expenses. 
D)  assets, liabilities, and equity items. 
A)  liabilities. 
B)  assets. 
C)  expenses. 
D)  assets, liabilities, and equity items.

Question 11

Root Company provided consulting services and billed the client $2,500. As a result of this event,

Accepted Answer

A)  assets remained unchanged. 
B)  assets increased by $2,500. 
C)  equity increased by $2,500. 
D)  Both assets and equity increased by $2,500. 
A)  assets remained unchanged. 
B)  assets increased by $2,500. 
C)  equity increased by $2,500. 
D)  Both assets and equity increased by $2,500.

Question 12

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Accepted Answer

A)  journal, and transfer the information to the ledger accounts. 
B)  ledger, and transfer the information to the journal. 
C)  book of accounts, and transfer the information to the journal. 
D)  book of original entry, and transfer the information to the journal. 
A)  journal, and transfer the information to the ledger accounts. 
B)  ledger, and transfer the information to the journal. 
C)  book of accounts, and transfer the information to the journal. 
D)  book of original entry, and transfer the information to the journal.

Question 13

Which account below is not a subdivision of retained earnings?

Accepted Answer

A)  Dividends 
B)  Revenues 
C)  Expenses 
D)  Share Capital-Ordinary 
A)  Dividends 
B)  Revenues 
C)  Expenses 
D)  Share Capital-Ordinary

Question 14

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 15

Caria and Associates is a financial planning service. The account balances at December 31, 2014 are shown by the following alphabetical list:   Instructions
Prepare a trial balance with the accounts arranged in proper order.

Accepted Answer

The answer of Caria and Associates is a financial planning...

Question 16

The ledger accounts of the Redlands Place Gym at June 30, 2014 are shown below:   Instructions
Prepare a trial balance with the ledger accounts arranged in the proper order. Include the appropriate heading.

Accepted Answer

The answer of The ledger accounts of the Redlands Place...

Question 17

Entries that impact the income statement are called simple entries, whereas entries that impact the statement of financial position are called compound entries.

Accepted Answer

A) True 
 B)False

Question 18

Posting

Accepted Answer

A)  accumulates the effects of ledger entries and transfers them to the general journal. 
B)  is done only for income statement activity; activity related to the statement of financial position does not require posting. 
C)  is done only once per year. 
D)  is done by posting all the debits and credits of one entry before moving on to the next entry. 
A)  accumulates the effects of ledger entries and transfers them to the general journal. 
B)  is done only for income statement activity; activity related to the statement of financial position does not require posting. 
C)  is done only once per year. 
D)  is done by posting all the debits and credits of one entry before moving on to the next entry.

Question 19

The usual ordering of accounts in the general ledger is

Accepted Answer

A)  assets, liabilities, share capital-ordinary, retained earnings, dividends, revenues, and expenses. 
B)  assets, liabilities, dividends, share capital-ordinary, retained earnings, expenses, and revenues. 
C)  liabilities, assets, share capital-ordinary, retained earnings, revenues, expenses, and dividends. 
D)  Share capital-ordinary, retained earnings, assets, liabilities, dividends, expenses, and revenues. 
A)  assets, liabilities, share capital-ordinary, retained earnings, dividends, revenues, and expenses. 
B)  assets, liabilities, dividends, share capital-ordinary, retained earnings, expenses, and revenues. 
C)  liabilities, assets, share capital-ordinary, retained earnings, revenues, expenses, and dividends. 
D)  Share capital-ordinary, retained earnings, assets, liabilities, dividends, expenses, and revenues.

Question 20

Which one of the following represents the expanded basic accounting equation?

Accepted Answer

A)  Assets = Liabilities + Share Capital-Ordinary account + Retained Earnings + Dividends - Revenue - Expenses. 
B)  Assets + Dividends + Expenses = Liabilities + Share Capital-Ordinary + Retained Earnings + Revenues. 
C)  Assets - Liabilities - Dividends = Share Capital-Ordinary + Retained Earnings + Revenues - Expenses. 
D)  Assets = Revenues + Expenses - Liabilities. 
A)  Assets = Liabilities + Share Capital-Ordinary account + Retained Earnings + Dividends - Revenue - Expenses. 
B)  Assets + Dividends + Expenses = Liabilities + Share Capital-Ordinary + Retained Earnings + Revenues. 
C)  Assets - Liabilities - Dividends = Share Capital-Ordinary + Retained Earnings + Revenues - Expenses. 
D)  Assets = Revenues + Expenses - Liabilities.

A three column form of account is so named because it has columns for

At October 1, 2014, Padilla Industries had an accounts payable balance of $60,000. During the month, the company made purchases on account of $50,000 and made payments on account of $80,000. At October 31, 2014, the accounts payable balance is

A debit to an asset account indicates

Another name for the journal is the

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.

Indicate for each debit and each credit: (a) whether an asset, liability, equity, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased. Answers should be presented in the following chart form:

During February 2014, its first month of operations, the owner of Alona Enterprises invested cash of $75,000. Alona had cash revenues of $12,000 and paid expenses of $21,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

The expanded accounting equation under GAAP is as follows

The standard format of a journal would not include

An account is an individual accounting record of increases and decreases in specific

Root Company provided consulting services and billed the client $2,500. As a result of this event,

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Which account below is not a subdivision of retained earnings?

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

Caria and Associates is a financial planning service. The account balances at December 31, 2014 are shown by the following alphabetical list: Instructions Prepare a trial balance with the accounts arranged in proper order.

The ledger accounts of the Redlands Place Gym at June 30, 2014 are shown below: Instructions Prepare a trial balance with the ledger accounts arranged in the proper order. Include the appropriate heading.

Entries that impact the income statement are called simple entries, whereas entries that impact the statement of financial position are called compound entries.

Posting

The usual ordering of accounts in the general ledger is

Which one of the following represents the expanded basic accounting equation?

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting Principles and Contingent Liabilities in Business Operations

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Exam 2: The Recording Process

A three column form of account is so named because it has columns for

At October 1, 2014, Padilla Industries had an accounts payable balance of $60,000. During the month, the company made purchases on account of $50,000 and made payments on account of $80,000. At October 31, 2014, the accounts payable balance is

A debit to an asset account indicates

Another name for the journal is the

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.

Indicate for each debit and each credit: (a) whether an asset, liability, equity, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased. Answers should be presented in the following chart form:

During February 2014, its first month of operations, the owner of Alona Enterprises invested cash of $75,000. Alona had cash revenues of $12,000 and paid expenses of $21,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

The expanded accounting equation under GAAP is as follows

The standard format of a journal would not include

An account is an individual accounting record of increases and decreases in specific

Root Company provided consulting services and billed the client $2,500. As a result of this event,

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Which account below is not a subdivision of retained earnings?

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

Caria and Associates is a financial planning service. The account balances at December 31, 2014 are shown by the following alphabetical list: Instructions Prepare a trial balance with the accounts arranged in proper order.

The ledger accounts of the Redlands Place Gym at June 30, 2014 are shown below: Instructions Prepare a trial balance with the ledger accounts arranged in the proper order. Include the appropriate heading.

Entries that impact the income statement are called simple entries, whereas entries that impact the statement of financial position are called compound entries.

Posting

The usual ordering of accounts in the general ledger is

Which one of the following represents the expanded basic accounting equation?

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting Principles and Contingent Liabilities in Business Operations

Filters