Question 1

Which of the following statements best describes one effect of recognizing expenses incurred by a business entity?

Accepted Answer

A) Assets will increase. 
B) Liabilities will decrease. 
C) Stockholders' equity will increase. 
D) Stockholders' equity will decrease. 
A) Assets will increase. 
B) Liabilities will decrease. 
C) Stockholders' equity will increase. 
D) Stockholders' equity will decrease.

Question 2

Carl and Stefanie each invest $15,000 in a business and are given shares of stock in Thibeau Industries as evidence of their ownership interests.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) Liabilities decrease and assets decrease. 
A) Assets increase and liabilities increase. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities decrease and assets decrease.

Question 3

All of the following accounts have normal debit balances except

Accepted Answer

A) Accounts Receivable 
B) Dividends 
C) Office Supplies Expense 
D) Sales 
A) Accounts Receivable 
B) Dividends 
C) Office Supplies Expense 
D) Sales

Question 4

A trial balance is aan)

Accepted Answer

A) optional financial statement used only by accountants. 
B) device used to prove the equality of debits and credits in the general ledger. 
C) list of accounts and their balances taken from the chart of accounts. 
D) financial statement which can be used in place of a balance sheet. 
A) optional financial statement used only by accountants. 
B) device used to prove the equality of debits and credits in the general ledger. 
C) list of accounts and their balances taken from the chart of accounts. 
D) financial statement which can be used in place of a balance sheet.

Question 5

Which of the following statements is true?

Accepted Answer

A) If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger. 
B) If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. 
C) Posting occurs when numbers in the general ledger accounts are transferred to the general journal. 
D) If the sum of the debit balances equals the sum of the credit balances then there were no mistakes made in the posting process. 
A) If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger. 
B) If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. 
C) Posting occurs when numbers in the general ledger accounts are transferred to the general journal. 
D) If the sum of the debit balances equals the sum of the credit balances then there were no mistakes made in the posting process.

Question 6

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger, it must be recorded

Accepted Answer

A) as a debit to that account in the general ledger. 
B) as a credit to that account in the general ledger. 
C) in sum only, without any regard for debit or credit, since the general ledger accounts do not have spaces for debit and credit entries. 
D) cannot be determined without further information. 
A) as a debit to that account in the general ledger. 
B) as a credit to that account in the general ledger. 
C) in sum only, without any regard for debit or credit, since the general ledger accounts do not have spaces for debit and credit entries. 
D) cannot be determined without further information.

Question 7

The record in which transactions are initially recorded in chronological order as they occur is aan)

Accepted Answer

A) Account 
B) General Journal 
C) General Ledger 
D) Chart of Accounts 
A) Account 
B) General Journal 
C) General Ledger 
D) Chart of Accounts

Question 8

Which of the following statements is false?

Accepted Answer

A) Checks and deposit slips are the main source of documents backing up the bank statement. 
B) Retailers use cash register tapes to recognize sales. 
C) Stock certificates are evidence of being a creditor of the company. 
D) Time cards are used as the source of information to record wages. 
A) Checks and deposit slips are the main source of documents backing up the bank statement. 
B) Retailers use cash register tapes to recognize sales. 
C) Stock certificates are evidence of being a creditor of the company. 
D) Time cards are used as the source of information to record wages.

Question 9

Services are provided for customers who pay for the services immediately.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) Liabilities decrease and assets decrease. 
A) Assets increase and liabilities increase. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities decrease and assets decrease.

Question 10

provide the evidence needed in an accounting system to record a transaction.

Accepted Answer

The answer of provide the evidence needed in an accounting...

Question 11

Double-entry accounting is best characterized as:

Accepted Answer

A) The number of debit entries posted to the ledger equals the number of credit entries. 
B) The number of ledger accounts with debit balances is equal to the number with credit balances. 
C) Every transaction affects both an asset account and either a liability account or a stockholders' equity account. 
D) The total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries. 
A) The number of debit entries posted to the ledger equals the number of credit entries. 
B) The number of ledger accounts with debit balances is equal to the number with credit balances. 
C) Every transaction affects both an asset account and either a liability account or a stockholders' equity account. 
D) The total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries.

Question 12

If an accounting firm provides services on account, both and stockholders' equity increase.

Accepted Answer

The answer of If an accounting firm provides services on...

Question 13

With few exceptions, the balance of all accounts should be on the side of the T account that causes the increase.

Accepted Answer

A) True 
 B)False

Question 14

The equality of debits and credits in a trial balance means that all entries were correctly posted to the accounts.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following statements is true?

Accepted Answer

A) External events transactions) involve interactions between an entity and a party outside the entity. 
B) Every event or transaction which affects an entity is identified from a source document. 
C) All economic events can be reliably measured. 
D) The movement of raw material into production is an external event. 
A) External events transactions) involve interactions between an entity and a party outside the entity. 
B) Every event or transaction which affects an entity is identified from a source document. 
C) All economic events can be reliably measured. 
D) The movement of raw material into production is an external event.

Question 16

The origins of single-entry accounting were documented in a book written by Pacioli over 500 years ago.It includes the concepts of bookkeeping that are still applied today.

Accepted Answer

A) True 
 B)False

Question 17

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 23 transaction will include a credit of $430 to

Accepted Answer

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

Question 18

Parachute Country Club
Use the selected accounts for Parachute Country Club presented below to answer the following questions).      
-Read the information on Parachute Country Club.
On which date did the company make cash sales for daily golf and swimming fees?

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 19

Services are provided for customers who are sent bills for the amount they owe.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) Liabilities decrease and assets decrease. 
A) Assets increase and liabilities increase. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities decrease and assets decrease.

Question 20

Maryland Vacations has a $2,200 account receivable from the Miami Kiwanis.On March 11, the Kiwanis makes a partial payment of $1,050 to Maryland.The journal entry made on March 11 by Maryland to record this transaction includes:

Accepted Answer

A) A debit to the Cash account of $1,150. 
B) A debit to the Accounts Receivable account of $1,150. 
C) A credit to the Service Revenue account of $1,050. 
D) A credit to the Accounts Receivable account of $1,050. 
A) A debit to the Cash account of $1,150. 
B) A debit to the Accounts Receivable account of $1,150. 
C) A credit to the Service Revenue account of $1,050. 
D) A credit to the Accounts Receivable account of $1,050.

Which of the following statements best describes one effect of recognizing expenses incurred by a business entity?

Carl and Stefanie each invest $15,000 in a business and are given shares of stock in Thibeau Industries as evidence of their ownership interests.For this transaction, identify the effect on the accounting equation.

All of the following accounts have normal debit balances except

A trial balance is aan)

Which of the following statements is true?

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger, it must be recorded

The record in which transactions are initially recorded in chronological order as they occur is aan)

Which of the following statements is false?

Services are provided for customers who pay for the services immediately.For this transaction, identify the effect on the accounting equation.

provide the evidence needed in an accounting system to record a transaction.

Double-entry accounting is best characterized as:

If an accounting firm provides services on account, both and stockholders' equity increase.

With few exceptions, the balance of all accounts should be on the side of the T account that causes the increase.

The equality of debits and credits in a trial balance means that all entries were correctly posted to the accounts.

Which one of the following statements is true?

The origins of single-entry accounting were documented in a book written by Pacioli over 500 years ago.It includes the concepts of bookkeeping that are still applied today.

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 23 transaction will include a credit of $430 to

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions). -Read the information on Parachute Country Club. On which date did the company make cash sales for daily golf and swimming fees?

Services are provided for customers who are sent bills for the amount they owe.For this transaction, identify the effect on the accounting equation.

Maryland Vacations has a $2,200 account receivable from the Miami Kiwanis.On March 11, the Kiwanis makes a partial payment of $1,050 to Maryland.The journal entry made on March 11 by Maryland to record this transaction includes:

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 statements best describes one effect of recognizing expenses incurred by a business entity?

Carl and Stefanie each invest $15,000 in a business and are given shares of stock in Thibeau Industries as evidence of their ownership interests.For this transaction, identify the effect on the accounting equation.

All of the following accounts have normal debit balances except

A trial balance is aan)

Which of the following statements is true?

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger, it must be recorded

The record in which transactions are initially recorded in chronological order as they occur is aan)

Which of the following statements is false?

Services are provided for customers who pay for the services immediately.For this transaction, identify the effect on the accounting equation.

provide the evidence needed in an accounting system to record a transaction.

Double-entry accounting is best characterized as:

If an accounting firm provides services on account, both and stockholders' equity increase.

With few exceptions, the balance of all accounts should be on the side of the T account that causes the increase.

The equality of debits and credits in a trial balance means that all entries were correctly posted to the accounts.

Which one of the following statements is true?

The origins of single-entry accounting were documented in a book written by Pacioli over 500 years ago.It includes the concepts of bookkeeping that are still applied today.

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 23 transaction will include a credit of $430 to

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions). -Read the information on Parachute Country Club. On which date did the company make cash sales for daily golf and swimming fees?

Services are provided for customers who are sent bills for the amount they owe.For this transaction, identify the effect on the accounting equation.

Maryland Vacations has a $2,200 account receivable from the Miami Kiwanis.On March 11, the Kiwanis makes a partial payment of $1,050 to Maryland.The journal entry made on March 11 by Maryland to record this transaction includes:

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