Question 1

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.

Accepted Answer

The answer of For the accounts listed below, indicate if...

Question 2

When three or more accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A)  compound entry. 
B)  triple entry. 
C)  multiple entry. 
D)  simple entry. 
A)  compound entry. 
B)  triple entry. 
C)  multiple entry. 
D)  simple entry.

Question 3

Match the items below by entering the appropriate code letter in the space provided.
A. Account 
B. Normal account balance 
C. Debit 
D. Revenue account
E. Compound entry 
F. Journal
G. Posting
H. Chart of accounts
 I. Trial balance
J. Simple entry
1. An entry that involves three or more accounts.
2. Transferring journal entries to ledger accounts.
3. The side which increases an account.
4. A list of all the accounts used by a company.
5. A record of increases and decreases in specific assets, liabilities, and stockholdersl items.
6. Left side of an account.
7. An entry that involves only two accounts.
8. A book of original entry.
9. A list of accounts and their balances at a given time.
10. Has a credit normal balance
Answers to Matching

Accepted Answer

1. E 6. C
2. G 7. J

Question 4

The chart of accounts is a

Accepted Answer

A)  list of accounts and their balances at a given time. 
B)  device used to prove the mathematical accuracy of the ledger. 
C)  listing of the accounts and the account numbers which identify their location in the ledger. 
D)  required step in the recording process. 
A)  list of accounts and their balances at a given time. 
B)  device used to prove the mathematical accuracy of the ledger. 
C)  listing of the accounts and the account numbers which identify their location in the ledger. 
D)  required step in the recording process.

Question 5

The usual order of accounts in the general ledger is

Accepted Answer

A)  assets, liabilities, common stock, retained earnings, dividends, revenues, and expenses. 
B)  assets, liabilities, dividends, common stock, retained earnings, expenses, and revenues. 
C)  liabilities, assets, common stock, retained earnings, revenues, expenses, and dividends. 
D)  common stock, retained earnings, assets, liabilities, dividends, expenses, and revenues. 
A)  assets, liabilities, common stock, retained earnings, dividends, revenues, and expenses. 
B)  assets, liabilities, dividends, common stock, retained earnings, expenses, and revenues. 
C)  liabilities, assets, common stock, retained earnings, revenues, expenses, and dividends. 
D)  common stock, retained earnings, assets, liabilities, dividends, expenses, and revenues.

Question 6

For the basic accounting equation to stay in balance, each transaction recorded must

Accepted Answer

A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts. 
A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts.

Question 7

The ledger accounts should be arranged in

Accepted Answer

A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal. 
A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal.

Question 8

Transactions for Tom Petty Company for the month of October are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations.
1. Invested $40,000 cash in the business in exchange for stock.
2. Purchased land costing $28,000 for cash.
3. Purchased equipment costing $15,000 for $3,000 cash and the remainder on credit.
4. Purchased supplies on account for $800.
5. Paid $1,000 for a one-year insurance policy.
6. Received $3,000 cash for services performed.
7. Received $4,000 for services previously performed on account.
8. Paid wages to employees for $2,500.
9. Paid dividends of $2,000.

Accepted Answer

The answer of Transactions for Tom Petty Company for the...

Question 9

At October 1, 2018, Padilla Industries had an accounts payable balance of $40,000. During the month, the company made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2018, the accounts payable balance is

Accepted Answer

A)  $25,000. 
B)  $41,000. 
C)  $55,000. 
D)  $121,000. 
A)  $25,000. 
B)  $41,000. 
C)  $55,000. 
D)  $121,000.

Question 10

Under IFRS, the trial balance

Accepted Answer

A)  follows the same format as under GAAP. 
B)  shows credits on the left and debits on the right. 
C)  includes less accounts than under GAAP. 
D)  includes more accounts than under GAAP.
IFRS. 
A)  follows the same format as under GAAP. 
B)  shows credits on the left and debits on the right. 
C)  includes less accounts than under GAAP. 
D)  includes more accounts than under GAAP.
IFRS.

Question 11

The transactions of Medina Information Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided.

Accepted Answer

The answer of The transactions of Medina Information Service are...

Question 12

Identify the accounts to be debited and credited for each of the following transactions.
1. Invested $8,000 cash in the business in exchange for stock.
2. Purchased supplies on account for $1,000.
3. Billed customers $2,000 for services performed.
4. Paid salaries of $1,200.

Accepted Answer

None

Question 13

Debit and credit can be interpreted to mean increase and decrease, respectively.

Accepted Answer

A) True 
 B)False

Question 14

The recording process occurs

Accepted Answer

A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system. 
A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system.

Question 15

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Accepted Answer

A) True 
 B)False

Exam 2: The Recording Process

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.

When three or more accounts are required in one journal entry, the entry is referred to as a

The chart of accounts is a

The usual order of accounts in the general ledger is

For the basic accounting equation to stay in balance, each transaction recorded must

The ledger accounts should be arranged in

At October 1, 2018, Padilla Industries had an accounts payable balance of $40,000. During the month, the company made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2018, the accounts payable balance is

Under IFRS, the trial balance

The transactions of Medina Information Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided.

Identify the accounts to be debited and credited for each of the following transactions. 1. Invested $8,000 cash in the business in exchange for stock. 2. Purchased supplies on account for $1,000. 3. Billed customers $2,000 for services performed. 4. Paid salaries of $1,200.

Debit and credit can be interpreted to mean increase and decrease, respectively.

The recording process occurs

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Payroll Accounting

Subsidiary Ledgers and Special Journals

Other Significant Liabilities

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