Question 1

Louisiana Enterprises received payment from its customers for previous sales on credit.What was the impact on its working capital?

Accepted Answer

A) Increase in working capital 
B) Decrease in working capital 
C) No effect on working capital 
D) Unable to determine 
A) Increase in working capital 
B) Decrease in working capital 
C) No effect on working capital 
D) Unable to determine

Question 2

During May, Aniston, Inc.purchased office supplies for cash.The supplies will be used in June.What effect does this purchase transaction have on the accounting equation?

Accepted Answer

A) Assets increase and stockholders' equity decreases. 
B) Assets increase and liabilities increase. 
C) Assets decrease and liabilities decrease. 
D) There is no effect on the accounting equation as one asset account increases while another asset account decreases. 
A) Assets increase and stockholders' equity decreases. 
B) Assets increase and liabilities increase. 
C) Assets decrease and liabilities decrease. 
D) There is no effect on the accounting equation as one asset account increases while another asset account decreases.

Question 3

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 9 transaction will include a credit of $1,220 to

Accepted Answer

A) Furniture and Supplies 
B) Cash 
C) Accounts Payable 
D) Administrative Expenses 
A) Furniture and Supplies 
B) Cash 
C) Accounts Payable 
D) Administrative Expenses

Question 4

A file or book which contains a record for all accounts used by a company, including the account balance, is called a

Accepted Answer

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

Question 5

The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is

Accepted Answer

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

Question 6

The is the file or book that contains all of a company's accounts.

Accepted Answer

The answer of The is the file or book that...

Question 7

Debit entries are used to

Accepted Answer

A) increase asset accounts. 
B) decrease expense accounts. 
C) increase liability accounts. 
D) increase revenue accounts. 
A) increase asset accounts. 
B) decrease expense accounts. 
C) increase liability accounts. 
D) increase revenue accounts.

Question 8

Which of the following accounts is increased by a credit entry?

Accepted Answer

A) Sales Revenue 
B) Salary Expense 
C) Accounts Receivable 
D) Dividends 
A) Sales Revenue 
B) Salary Expense 
C) Accounts Receivable 
D) Dividends

Question 9

A trial balance is the listing of each account and its balance at a specific point in time.

Accepted Answer

A) True 
 B)False

Question 10

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

Accepted Answer

A) True 
 B)False

Question 11

The principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

Accepted Answer

The answer of The principle says that, with a few...

Question 12

Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.

Accepted Answer

A) True 
 B)False

Question 13

Payment is made for land purchased earlier on credit.For this transaction, identify the effect on the accounting equation.

Accepted Answer

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

Question 14

An abbreviated version of an account which is useful for analyzing the effects of business transactions is the

Accepted Answer

A) chart of accounts 
B) double entry system 
C) T account 
D) trial balance 
A) chart of accounts 
B) double entry system 
C) T account 
D) trial balance

Question 15

One effect on the accounting equation when a firm borrows money is

Accepted Answer

A) stockholders' equity decreases. 
B) assets increase. 
C) liabilities decrease. 
D) assets decrease. 
A) stockholders' equity decreases. 
B) assets increase. 
C) liabilities decrease. 
D) assets decrease.

Question 16

Which of the following statements regarding the activities of Forman Corp.is true?

Accepted Answer

A) Revenues decrease Forman's stockholders' equity. 
B) Expenses increase Forman's stockholders' equity. 
C) Expenses decrease Forman's stockholders' equity. 
D) None of these answer choices is correct. 
A) Revenues decrease Forman's stockholders' equity. 
B) Expenses increase Forman's stockholders' equity. 
C) Expenses decrease Forman's stockholders' equity. 
D) None of these answer choices is correct.

Question 17

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.On January 31, 2015, the total liabilities are:

Accepted Answer

A) $0 
B) $56,000 
C) $41,000 
D) $30,000 
A) $0 
B) $56,000 
C) $41,000 
D) $30,000

Question 18

Which of the following will not cause a trial balance to be out of balance?

Accepted Answer

A) The balance for an account is incorrectly computed. 
B) A debit entry is posted as a credit. 
C) A credit entry is posted to the wrong account as a credit. 
D) An account is accidentally omitted from the trial balance. 
A) The balance for an account is incorrectly computed. 
B) A debit entry is posted as a credit. 
C) A credit entry is posted to the wrong account as a credit. 
D) An account is accidentally omitted from the trial balance.

Question 19

The general journal is often used to record repetitive transactions.

Accepted Answer

A) True 
 B)False

Question 20

Various transactions may change the amount and composition of the assets and liabilities, but the
____________________________ must balance after each transaction.

Accepted Answer

The answer of Various transactions may change the amount and...

Louisiana Enterprises received payment from its customers for previous sales on credit.What was the impact on its working capital?

During May, Aniston, Inc.purchased office supplies for cash.The supplies will be used in June.What effect does this purchase transaction have on the accounting equation?

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 9 transaction will include a credit of $1,220 to

A file or book which contains a record for all accounts used by a company, including the account balance, is called a

The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is

The is the file or book that contains all of a company's accounts.

Debit entries are used to

Which of the following accounts is increased by a credit entry?

A trial balance is the listing of each account and its balance at a specific point in time.

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

The principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.

Payment is made for land purchased earlier on credit.For this transaction, identify the effect on the accounting equation.

An abbreviated version of an account which is useful for analyzing the effects of business transactions is the

One effect on the accounting equation when a firm borrows money is

Which of the following statements regarding the activities of Forman Corp.is true?

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.On January 31, 2015, the total liabilities are:

Which of the following will not cause a trial balance to be out of balance?

The general journal is often used to record repetitive transactions.

Various transactions may change the amount and composition of the assets and liabilities, but the ____________________________ must balance after each transaction.

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

Exam 3: Processing Accounting Information

Louisiana Enterprises received payment from its customers for previous sales on credit.What was the impact on its working capital?

During May, Aniston, Inc.purchased office supplies for cash.The supplies will be used in June.What effect does this purchase transaction have on the accounting equation?

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 9 transaction will include a credit of $1,220 to

A file or book which contains a record for all accounts used by a company, including the account balance, is called a

The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is

The is the file or book that contains all of a company's accounts.

Debit entries are used to

Which of the following accounts is increased by a credit entry?

A trial balance is the listing of each account and its balance at a specific point in time.

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

The principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.

Payment is made for land purchased earlier on credit.For this transaction, identify the effect on the accounting equation.

An abbreviated version of an account which is useful for analyzing the effects of business transactions is the

One effect on the accounting equation when a firm borrows money is

Which of the following statements regarding the activities of Forman Corp.is true?

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.On January 31, 2015, the total liabilities are:

Which of the following will not cause a trial balance to be out of balance?

The general journal is often used to record repetitive transactions.

Various transactions may change the amount and composition of the assets and liabilities, but the ____________________________ must balance after each transaction.

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