Question 1

Which pair of accounts has the same set of rules for debit and credit entries?

Accepted Answer

A) Service Revenue and Rent Expense 
B) Dividends and Retained Earnings 
C) Equipment and Salaries Expense 
D) Accounts Receivable and Accounts Payable 
A) Service Revenue and Rent Expense 
B) Dividends and Retained Earnings 
C) Equipment and Salaries Expense 
D) Accounts Receivable and Accounts Payable

Question 2

The payment of salaries and wages decreases cash and increases an) .

Accepted Answer

The answer of The payment of salaries and wages decreases...

Question 3

Krenshaw Rentals
Use the five transactions for Krenshaw Rentals described below to answer the questions) that follows).  
-Refer to the transactions for Krenshaw Rentals.
Based on the above transactions, how much is still owed to Krenshaw on October 31 from its customers?

Accepted Answer

A) $ -0- 
B) $ 250 
C) $ 500 
D) $ 750 
A) $ -0- 
B) $ 250 
C) $ 500 
D) $ 750

Question 4

An entry made to the right side of an account is called a

Accepted Answer

A) debit 
B) credit 
C) double-entry system 
D) journal entry 
A) debit 
B) credit 
C) double-entry system 
D) journal entry

Question 5

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

Accepted Answer

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

Question 6

Payment is received from customers who were billed earlier for services provided for them.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 decreases. 
D) There is no effect on the accounting equation as one asset account increases while another asset account decreases. 
A) Assets increase and liabilities increase. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) There is no effect on the accounting equation as one asset account increases while another asset account decreases.

Question 7

Blecker Corp.made cash sales to customers.What effect does this transaction have on the accounting equation?

Accepted Answer

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

Question 8

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 15 transaction will include a debit of $1,220 to

Accepted Answer

A) Salaries Expense 
B) Salaries Payable 
C) Prepaid Expenses 
D) Accounts Payable 
A) Salaries Expense 
B) Salaries Payable 
C) Prepaid Expenses 
D) Accounts Payable

Question 9

Unfortunately, the bookkeeper notices that two transactions for Patio Publications were not reflected in the balances of the trial balance: one to record $800 of accrued wages and salaries to be paid in the next period, and the other was the use of $560 of office supplies from the supplies on hand.If the Trial Balance column totals are $15,380 prior to discovering these mistakes, what are the totals of the Trial Balance columns after the corrections are made?

Accepted Answer

A) $15,860 
B) $15,140 
C) $16,740 
D) $16,180 
A) $15,860 
B) $15,140 
C) $16,740 
D) $16,180

Question 10

Given that Carlson Corp.'s current ratio is 3 to 2, what is the effect of obtaining a patent from the inventor in exchange for shares of stock in Carlson Corp.?

Accepted Answer

A) The current ratio would increase. 
B) The current ratio would decrease. 
C) The current ratio would remain the same. 
D) Unable to determine. 
A) The current ratio would increase. 
B) The current ratio would decrease. 
C) The current ratio would remain the same. 
D) Unable to determine.

Question 11

An) is a chronological record of all transactions entered into by a business.

Accepted Answer

The answer of An) is a chronological record of all...

Question 12

The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded by:

Accepted Answer

A) A debit of $2,600 to Office Equipment, a debit of $1,200 to Accounts Receivable, and a credit of $1,400 to Accounts Payable. 
B) A debit of $1,400 to Accounts Receivable, a debit of $1,200 to Cash, and a credit of $2,600 to Office Equipment. 
C) A debit of $2,600 to Office Equipment, a credit of $1,200 to Cash, and a credit of $1,400 to Accounts Payable. 
D) A debit of $2,600 to Office Equipment, a credit of $1,200 to Cash, and a credit of $1,400 to Accounts Receivable. 
A) A debit of $2,600 to Office Equipment, a debit of $1,200 to Accounts Receivable, and a credit of $1,400 to Accounts Payable. 
B) A debit of $1,400 to Accounts Receivable, a debit of $1,200 to Cash, and a credit of $2,600 to Office Equipment. 
C) A debit of $2,600 to Office Equipment, a credit of $1,200 to Cash, and a credit of $1,400 to Accounts Payable. 
D) A debit of $2,600 to Office Equipment, a credit of $1,200 to Cash, and a credit of $1,400 to Accounts Receivable.

Question 13

The acquisition of a computer for $1,200, with a downpayment of $200 cash and the signing of a $1,000 note payable for the balance increases both assets and .

Accepted Answer

The answer of The acquisition of a computer for $1,200,...

Question 14

Credit entries are used to

Accepted Answer

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

Question 15

The ledgers are an example of an accounting book of original entry.

Accepted Answer

A) True 
 B)False

Question 16

Land is purchased on credit.For this transaction, identify the effect on the accounting equation.

Accepted Answer

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

Question 17

Which of the following statements is true?

Accepted Answer

A) Only the effects of internal transactions must be recognized and recorded in the entity's accounting system. 
B) An internal event is a transaction between an entity and its environment. 
C) Not all recognizable events are supported by a standard source document. 
D) Only the effects of external events must be recognized, measured, and recorded in an entity's accounting system. 
A) Only the effects of internal transactions must be recognized and recorded in the entity's accounting system. 
B) An internal event is a transaction between an entity and its environment. 
C) Not all recognizable events are supported by a standard source document. 
D) Only the effects of external events must be recognized, measured, and recorded in an entity's accounting system.

Question 18

What type of account is increased with a debit but is a decrease to retained earnings?

Accepted Answer

A) Liability 
B) Asset 
C) Revenue 
D) Expense 
A) Liability 
B) Asset 
C) Revenue 
D) Expense

Question 19

When making a general journal entry, there can only be one debit and one credit.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following entries causes a decrease in assets and in net income?

Accepted Answer

A) The entry to record the payment of utilities with cash. 
B) The entry to record the payment of rent for three months in advance. 
C) The entry to record accrued wages payable. 
D) The entry to record revenue earned but not yet received. 
A) The entry to record the payment of utilities with cash. 
B) The entry to record the payment of rent for three months in advance. 
C) The entry to record accrued wages payable. 
D) The entry to record revenue earned but not yet received.

Which pair of accounts has the same set of rules for debit and credit entries?

The payment of salaries and wages decreases cash and increases an) .

Krenshaw Rentals Use the five transactions for Krenshaw Rentals described below to answer the questions) that follows). -Refer to the transactions for Krenshaw Rentals. Based on the above transactions, how much is still owed to Krenshaw on October 31 from its customers?

An entry made to the right side of an account is called a

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

Payment is received from customers who were billed earlier for services provided for them.For this transaction, identify the effect on the accounting equation.

Blecker Corp.made cash sales to customers.What effect does this 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 15 transaction will include a debit of $1,220 to

Given that Carlson Corp.'s current ratio is 3 to 2, what is the effect of obtaining a patent from the inventor in exchange for shares of stock in Carlson Corp.?

An) is a chronological record of all transactions entered into by a business.

The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded by:

The acquisition of a computer for $1,200, with a downpayment of $200 cash and the signing of a $1,000 note payable for the balance increases both assets and .

Credit entries are used to

The ledgers are an example of an accounting book of original entry.

Land is purchased on credit.For this transaction, identify the effect on the accounting equation.

Which of the following statements is true?

What type of account is increased with a debit but is a decrease to retained earnings?

When making a general journal entry, there can only be one debit and one credit.

Which of the following entries causes a decrease in assets and in net income?

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 pair of accounts has the same set of rules for debit and credit entries?

The payment of salaries and wages decreases cash and increases an) .

Krenshaw Rentals Use the five transactions for Krenshaw Rentals described below to answer the questions) that follows). -Refer to the transactions for Krenshaw Rentals. Based on the above transactions, how much is still owed to Krenshaw on October 31 from its customers?

An entry made to the right side of an account is called a

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

Payment is received from customers who were billed earlier for services provided for them.For this transaction, identify the effect on the accounting equation.

Blecker Corp.made cash sales to customers.What effect does this 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 15 transaction will include a debit of $1,220 to

Given that Carlson Corp.'s current ratio is 3 to 2, what is the effect of obtaining a patent from the inventor in exchange for shares of stock in Carlson Corp.?

An) is a chronological record of all transactions entered into by a business.

The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded by:

The acquisition of a computer for $1,200, with a downpayment of $200 cash and the signing of a $1,000 note payable for the balance increases both assets and .

Credit entries are used to

The ledgers are an example of an accounting book of original entry.

Land is purchased on credit.For this transaction, identify the effect on the accounting equation.

Which of the following statements is true?

What type of account is increased with a debit but is a decrease to retained earnings?

When making a general journal entry, there can only be one debit and one credit.

Which of the following entries causes a decrease in assets and in net income?

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