Question 1

Which of the following accounts normally has a credit balance?

Accepted Answer

A)  Accumulated depreciation 
B)  Accounts receivable 
C)  Dividends declared 
D)  Rent expense 
A)  Accumulated depreciation 
B)  Accounts receivable 
C)  Dividends declared 
D)  Rent expense A

Question 2

Which of the following would normally be recorded with an adjusting entry?

Accepted Answer

A)  sales on account 
B)  payment for supplies bought on account 
C)  Wage expense 
D)  Depreciation expense 
A)  sales on account 
B)  payment for supplies bought on account 
C)  Wage expense 
D)  Depreciation expense D

Question 3

Which of the following types of accounts appear on the Statement of Financial Position and Statement of Income respectively?

Accepted Answer

B

Question 4

Which of the following results in a debit entry to the account identified?

Accepted Answer

A)  increase in shareholders' equity 
B)  recording interest revenue 
C)  payment on accounts receivable 
D)  decrease in shareholders' equity 
A)  increase in shareholders' equity 
B)  recording interest revenue 
C)  payment on accounts receivable 
D)  decrease in shareholders' equity

Question 5

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Accepted Answer

A)  Dr. Accounts receivable, Dr. Cash, Cr. Sales revenue 
B)  Dr. Cash, Dr. Accounts payable, Cr. Sales revenue 
C)  Dr. Cash, Cr. Sales revenue 
D)  Dr. Accounts payable, Dr. Accounts receivable, Cr. Sales revenue 
A)  Dr. Accounts receivable, Dr. Cash, Cr. Sales revenue 
B)  Dr. Cash, Dr. Accounts payable, Cr. Sales revenue 
C)  Dr. Cash, Cr. Sales revenue 
D)  Dr. Accounts payable, Dr. Accounts receivable, Cr. Sales revenue

Question 6

Which of the following sequences concerning the accounting cycle is correct?

Accepted Answer

A)  journalize, post, adjusting entries, financial statements 
B)  transaction analysis, trial balance, post, adjusted trial balance 
C)  post, adjusting entries, closing entries, financial statements 
D)  adjusting entries, closing entries, adjusted trial balance, financial statements 
A)  journalize, post, adjusting entries, financial statements 
B)  transaction analysis, trial balance, post, adjusted trial balance 
C)  post, adjusting entries, closing entries, financial statements 
D)  adjusting entries, closing entries, adjusted trial balance, financial statements

Question 7

A net loss occurs when

Accepted Answer

A)  assets exceed liabilities. 
B)  expenses exceed revenues for the year. 
C)  dividends exceed income for the year. 
D)  cumulative expenses and dividends have exceeded income. 
A)  assets exceed liabilities. 
B)  expenses exceed revenues for the year. 
C)  dividends exceed income for the year. 
D)  cumulative expenses and dividends have exceeded income.

Question 8

Which of the following accounts normally has a debit balance?

Accepted Answer

A)  Accounts payable 
B)  Retained earnings 
C)  Land 
D)  Sales revenue 
A)  Accounts payable 
B)  Retained earnings 
C)  Land 
D)  Sales revenue

Question 9

When the board of directors declares and pays a $500 dividend, which of the following would be included in the resulting journal entry?

Accepted Answer

A)  Dr. Retained earnings, Cr. Cash 
B)  Dr. Cash, Cr. Retained Earnings 
C)  Dr. Retained Earnings, Cr. Dividends declared 
D)  Dr. Cash, Cr. Dividends payable 
A)  Dr. Retained earnings, Cr. Cash 
B)  Dr. Cash, Cr. Retained Earnings 
C)  Dr. Retained Earnings, Cr. Dividends declared 
D)  Dr. Cash, Cr. Dividends payable

Question 10

Closing entries are done monthly for all companies.

Accepted Answer

A) True 
 B)False

Question 11

An example of a contra asset account is

Accepted Answer

A)  Accumulated depreciation. 
B)  Depreciation expense. 
C)  Discount on Bonds Payable. 
D)  Prepaid expenses. 
A)  Accumulated depreciation. 
B)  Depreciation expense. 
C)  Discount on Bonds Payable. 
D)  Prepaid expenses.

Question 12

Which of the following accounts normally has a credit balance?

Accepted Answer

A)  Cash 
B)  Dividends declared 
C)  Insurance expense 
D)  Retained earnings 
A)  Cash 
B)  Dividends declared 
C)  Insurance expense 
D)  Retained earnings

Question 13

Which of the following is a current asset item on the Statement of Financial Position?

Accepted Answer

A)  Equipment 
B)  Prepaid expenses 
C)  Accounts payable 
D)  Accrued wages payable 
A)  Equipment 
B)  Prepaid expenses 
C)  Accounts payable 
D)  Accrued wages payable

Question 14

Which of the following statements regarding the retained earnings account is NOT true?

Accepted Answer

A)  It normally has a credit balance. 
B)  Its balance is increased by revenues. 
C)  Its balance is decreased by expenses. 
D)  Its balance is increased by the declaration of dividends. 
A)  It normally has a credit balance. 
B)  Its balance is increased by revenues. 
C)  Its balance is decreased by expenses. 
D)  Its balance is increased by the declaration of dividends.

Question 15

Which of the following accounts normally has a debit balance?

Accepted Answer

A)  Accumulated depreciation 
B)  Prepaid insurance 
C)  Accounts payable 
D)  Common shares 
A)  Accumulated depreciation 
B)  Prepaid insurance 
C)  Accounts payable 
D)  Common shares

Question 16

A list of all the accounts used by the company in its accounting records is referred to as a

Accepted Answer

A)  Chart of accounts 
B)  adjusted trial balance 
C)  general journal 
D)  general ledger 
A)  Chart of accounts 
B)  adjusted trial balance 
C)  general journal 
D)  general ledger

Question 17

All Statement of Financial Position accounts increase with debits, while all Statement of Income accounts increase with credits.

Accepted Answer

A) True 
 B)False

Question 18

An income summary account can be used when closing the books.

Accepted Answer

A) True 
 B)False

Question 19

The process of identifying and recording transactions is called

Accepted Answer

A)  transaction analysis. 
B)  posting. 
C)  recognizing. 
D)  journalizing. 
A)  transaction analysis. 
B)  posting. 
C)  recognizing. 
D)  journalizing.

Question 20

Prepaid expenses, inventory and accounts payable are examples of permanent accounts.

Accepted Answer

A) True 
 B)False

Which of the following accounts normally has a credit balance?

Which of the following would normally be recorded with an adjusting entry?

Which of the following types of accounts appear on the Statement of Financial Position and Statement of Income respectively?

Which of the following results in a debit entry to the account identified?

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Which of the following sequences concerning the accounting cycle is correct?

A net loss occurs when

Which of the following accounts normally has a debit balance?

When the board of directors declares and pays a $500 dividend, which of the following would be included in the resulting journal entry?

Closing entries are done monthly for all companies.

An example of a contra asset account is

Which of the following accounts normally has a credit balance?

Which of the following is a current asset item on the Statement of Financial Position?

Which of the following statements regarding the retained earnings account is NOT true?

Which of the following accounts normally has a debit balance?

A list of all the accounts used by the company in its accounting records is referred to as a

All Statement of Financial Position accounts increase with debits, while all Statement of Income accounts increase with credits.

An income summary account can be used when closing the books.

The process of identifying and recording transactions is called

Prepaid expenses, inventory and accounts payable are examples of permanent accounts.

Overview of Corporate Financial Reporting

Nalyzing Transaction and Their Effect on Financial Statement

Revenue Recognition and the Statement of Incom

Revenue Recognition and the Statement of Income

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

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Exam 3: Double-Entry Accounting and the Accounting Cycle

Which of the following accounts normally has a credit balance?

Which of the following would normally be recorded with an adjusting entry?

Which of the following types of accounts appear on the Statement of Financial Position and Statement of Income respectively?

Which of the following results in a debit entry to the account identified?

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Which of the following sequences concerning the accounting cycle is correct?

A net loss occurs when

Which of the following accounts normally has a debit balance?

When the board of directors declares and pays a $500 dividend, which of the following would be included in the resulting journal entry?

Closing entries are done monthly for all companies.

An example of a contra asset account is

Which of the following accounts normally has a credit balance?

Which of the following is a current asset item on the Statement of Financial Position?

Which of the following statements regarding the retained earnings account is NOT true?

Which of the following accounts normally has a debit balance?

A list of all the accounts used by the company in its accounting records is referred to as a

All Statement of Financial Position accounts increase with debits, while all Statement of Income accounts increase with credits.

An income summary account can be used when closing the books.

The process of identifying and recording transactions is called

Prepaid expenses, inventory and accounts payable are examples of permanent accounts.

Overview of Corporate Financial Reporting

Nalyzing Transaction and Their Effect on Financial Statement

Revenue Recognition and the Statement of Incom

Revenue Recognition and the Statement of Income

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Filters