Question 1

Which of the following transactions does not affect the total assets of Horizon Sailing Corp.?

Accepted Answer

A) A bill is received for the telephone service used by Horizon Sailing during the past month. 
B) Dividends are paid by Horizon Sailing. 
C) Customers are billed for sales made on credit by Horizon Sailing. 
D) A new computer is purchased on credit by Horizon Sailing. 
A) A bill is received for the telephone service used by Horizon Sailing during the past month. 
B) Dividends are paid by Horizon Sailing. 
C) Customers are billed for sales made on credit by Horizon Sailing. 
D) A new computer is purchased on credit by Horizon Sailing. A

Question 2

Parachute Country Club
Use the selected accounts for Parachute Country Club presented below to answer the following questions).      
-Read the information about Parachute Country Club.
Assuming that there are no other transactions, how much was owed to the club by the membership on August 8th?

Accepted Answer

A) $1,800 
B) $1,300 
C) $ 900 
D) $ 500 
A) $1,800 
B) $1,300 
C) $ 900 
D) $ 500 C

Question 3

The issuance of stock decreases a company's assets and increases its stockholders' equity.

Accepted Answer

A) True 
 B)False  False

Question 4

Dividends are not an) but a direct reduction of retained earnings.

Accepted Answer

The answer of Dividends are not an) but a direct...

Question 5

Wolfe Inc.
Wolfe Inc.reports these account balances at January 1, 2015:  
-See the account balances for Wolfe Inc.
On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.In Wolfe's trial balance prepared on January 1, 2015, the total of the credit column is:

Accepted Answer

A) $182,000 
B) $286,000 
C) $196,000 
D) $166,000 
A) $182,000 
B) $286,000 
C) $196,000 
D) $166,000

Question 6

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

Accepted Answer

A) Assets increase only when cash sales are made. 
B) Stockholders' equity increases only when credit sales are made. 
C) Assets and stockholders' equity increase when either cash or credit sales are made. 
D) Assets increase, but stockholders' equity decreases, when either cash or credit sales are made. 
A) Assets increase only when cash sales are made. 
B) Stockholders' equity increases only when credit sales are made. 
C) Assets and stockholders' equity increase when either cash or credit sales are made. 
D) Assets increase, but stockholders' equity decreases, when either cash or credit sales are made.

Question 7

If the sum of the debits and credits in a trial balance is not equal, then

Accepted Answer

A) there is no concern because the two amounts are not meant to be equal. 
B) the chart of accounts also does not balance. 
C) it is safe to proceed with the preparation of financial statements. 
D) most likely an error was made in posting journal entries to the general ledger or in preparing the trial balance. 
A) there is no concern because the two amounts are not meant to be equal. 
B) the chart of accounts also does not balance. 
C) it is safe to proceed with the preparation of financial statements. 
D) most likely an error was made in posting journal entries to the general ledger or in preparing the trial balance.

Question 8

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is aan)

Accepted Answer

A) Account 
B) General Journal 
C) Trial Balance 
D) Chart of Accounts 
A) Account 
B) General Journal 
C) Trial Balance 
D) Chart of Accounts

Question 9

Assets and expenses are ____________________ by credits.

Accepted Answer

The answer of Assets and expenses are ____________________ by credits....

Question 10

The credit side of an account is the right side while the debit side is the left side.

Accepted Answer

A) True 
 B)False

Question 11

The purchase of office equipment on credit has what effect on the accounting equation?

Accepted Answer

A) Assets decrease and stockholders' equity decreases. 
B) Liabilities increase and stockholders' equity decreases. 
C) Assets increase and liabilities increase. 
D) Assets decrease and liabilities decrease. 
A) Assets decrease and stockholders' equity decreases. 
B) Liabilities increase and stockholders' equity decreases. 
C) Assets increase and liabilities increase. 
D) Assets decrease and liabilities decrease.

Question 12

A trial balance can be distributed to stockholders in place of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

All of the following accounts have normal credit balances except

Accepted Answer

A) Accounts Payable 
B) Common Stock Capital Stock) 
C) Investments 
D) Service Revenue 
A) Accounts Payable 
B) Common Stock Capital Stock) 
C) Investments 
D) Service Revenue

Question 14

Parachute Country Club
Use the selected accounts for Parachute Country Club presented below to answer the following questions).      
-Read the information for Parachute Country Club.
On which date did the country club make a credit sale of club memberships?

Accepted Answer

A) August 2 
B) August 3 
C) August 5 
D) August 7 
A) August 2 
B) August 3 
C) August 5 
D) August 7

Question 15

The accounting equation must balance after each transaction.

Accepted Answer

A) True 
 B)False

Question 16

are a distribution of net income for the period, not a determinant of net income as are expenses.

Accepted Answer

The answer of are a distribution of net income for...

Question 17

The correct term for an entry made to the left side of an account is

Accepted Answer

A) Double-entry system 
B) Debit 
C) Credit 
D) Journalizing 
A) Double-entry system 
B) Debit 
C) Credit 
D) Journalizing

Question 18

The payment of employee salaries has what effect on the accounting equation?

Accepted Answer

A) Assets decrease and stockholders' equity decreases. 
B) Liabilities decrease and stockholders' equity decreases. 
C) Assets decrease and liabilities increase. 
D) Assets increase and liabilities decrease. 
A) Assets decrease and stockholders' equity decreases. 
B) Liabilities decrease and stockholders' equity decreases. 
C) Assets decrease and liabilities increase. 
D) Assets increase and liabilities decrease.

Question 19

Which of the following would be a case where an event as a transaction is not supported by a source document?

Accepted Answer

A) a purchase of inventory on credit 
B) a cash sale 
C) the financial consequences of a fire loss 
D) recording payroll 
A) a purchase of inventory on credit 
B) a cash sale 
C) the financial consequences of a fire loss 
D) recording payroll

Question 20

Use the following five transactions for Morton & Associates, Inc.to answer the questions).  
-See the transactions to Morton & Associates.
The journal entry to record the May 1 transaction will include a debit of $800 to

Accepted Answer

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

Which of the following transactions does not affect the total assets of Horizon Sailing Corp.?

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions). -Read the information about Parachute Country Club. Assuming that there are no other transactions, how much was owed to the club by the membership on August 8th?

The issuance of stock decreases a company's assets and increases its stockholders' equity.

Dividends are not an) but a direct reduction of retained earnings.

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

If the sum of the debits and credits in a trial balance is not equal, then

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is aan)

Assets and expenses are ____________________ by credits.

The credit side of an account is the right side while the debit side is the left side.

The purchase of office equipment on credit has what effect on the accounting equation?

A trial balance can be distributed to stockholders in place of the balance sheet.

All of the following accounts have normal credit balances except

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions). -Read the information for Parachute Country Club. On which date did the country club make a credit sale of club memberships?

The accounting equation must balance after each transaction.

are a distribution of net income for the period, not a determinant of net income as are expenses.

The correct term for an entry made to the left side of an account is

The payment of employee salaries has what effect on the accounting equation?

Which of the following would be a case where an event as a transaction is not supported by a source document?

Use the following five transactions for Morton & Associates, Inc.to answer the questions). -See the transactions to Morton & Associates. The journal entry to record the May 1 transaction will include a debit of $800 to

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

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Exam 3: Processing Accounting Information

Which of the following transactions does not affect the total assets of Horizon Sailing Corp.?

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions). -Read the information about Parachute Country Club. Assuming that there are no other transactions, how much was owed to the club by the membership on August 8th?

The issuance of stock decreases a company's assets and increases its stockholders' equity.

Dividends are not an) but a direct reduction of retained earnings.

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

If the sum of the debits and credits in a trial balance is not equal, then

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is aan)

Assets and expenses are ____________________ by credits.

The credit side of an account is the right side while the debit side is the left side.

The purchase of office equipment on credit has what effect on the accounting equation?

A trial balance can be distributed to stockholders in place of the balance sheet.

All of the following accounts have normal credit balances except

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions). -Read the information for Parachute Country Club. On which date did the country club make a credit sale of club memberships?

The accounting equation must balance after each transaction.

are a distribution of net income for the period, not a determinant of net income as are expenses.

The correct term for an entry made to the left side of an account is

The payment of employee salaries has what effect on the accounting equation?

Which of the following would be a case where an event as a transaction is not supported by a source document?

Use the following five transactions for Morton & Associates, Inc.to answer the questions). -See the transactions to Morton & Associates. The journal entry to record the May 1 transaction will include a debit of $800 to

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters