Question 1

Which of the following accounts normally has a debit balance?

Accepted Answer

A)  Accumulated depreciation 
B)  Prepaid insurance 
C)  Accounts payable 
D)  Common shares 
A)  Accumulated depreciation 
B)  Prepaid insurance 
C)  Accounts payable 
D)  Common shares

Question 2

Which statement regarding adjusting entries is not true?

Accepted Answer

A)  Adjusting entries are made at the end of the accounting period. 
B)  Adjusting entries can include cash transactions. 
C)  Adjusting entries are required for accrual accounting. 
D)  The recognition of depreciation expense is a deferral. 
A)  Adjusting entries are made at the end of the accounting period. 
B)  Adjusting entries can include cash transactions. 
C)  Adjusting entries are required for accrual accounting. 
D)  The recognition of depreciation expense is a deferral.

Question 3

At the end of December 2020 when preparing the financial statements, the accountant forgot to make the adjusting entry related to the depreciation of the capital assets.
Instructions
Explain the effect of the error on the Statement of Income and Statement of Financial Position for 2020 and 2021. Assume the error was not discovered and was not corrected in 2021.

Accepted Answer

The depreciation expense on the 2020 Sta

Question 4

What is a chart of accounts? Identify and describe what is contained in a chart of accounts and what management would take into consideration when developing the chart of accounts?

Accepted Answer

A list of a company's accounts is known

Question 5

Which of the following accounts normally has a credit balance?

Accepted Answer

A)  Accumulated depreciation 
B)  Accounts receivable 
C)  Dividends declared 
D)  Rent expense 
A)  Accumulated depreciation 
B)  Accounts receivable 
C)  Dividends declared 
D)  Rent expense

Question 6

The chart of accounts is ___.

Accepted Answer

A)  static 
B)  dynamic 
C)  not generally useful 
D)  contains only permanent accounts 
A)  static 
B)  dynamic 
C)  not generally useful 
D)  contains only permanent accounts

Question 7

All Statement of Financial Position accounts increase with debits, while all Statement of Income accounts increase with credits.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about the trail balance is not true?

Accepted Answer

A)  Debit balances must equal credit balances. 
B)  It includes only assets, liability and equity accounts. 
C)  It is useful for detecting errors. 
D)  It is an important step in the accounting cycle. 
A)  Debit balances must equal credit balances. 
B)  It includes only assets, liability and equity accounts. 
C)  It is useful for detecting errors. 
D)  It is an important step in the accounting cycle.

Question 9

Which of the following types of accounts appear on the Statement of Financial Position and Statement of Income respectively?

Accepted Answer

The answer of Which of the following types of accounts...

Question 10

Arrange the following accounting cycle steps in the proper order by placing numbers 1 through 10 in the blanks provided:

Accepted Answer

The answer of Arrange the following accounting cycle steps in...

Question 11

The right side of a T account is also known as the

Accepted Answer

A)  debit side. 
B)  credit side. 
C)  asset side. 
D)  liability side. 
A)  debit side. 
B)  credit side. 
C)  asset side. 
D)  liability side.

Question 12

An adjusting entry can be used to record transactions that have been missed.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following accounts normally has a debit balance?

Accepted Answer

A)  Accounts payable 
B)  Retained earnings 
C)  Land 
D)  Sales revenue 
A)  Accounts payable 
B)  Retained earnings 
C)  Land 
D)  Sales revenue

Question 14

Which of the following results in a debit entry to the account identified?

Accepted Answer

A)  increase in shareholders' equity 
B)  recording interest revenue 
C)  payment on accounts receivable 
D)  decrease in shareholders' equity 
A)  increase in shareholders' equity 
B)  recording interest revenue 
C)  payment on accounts receivable 
D)  decrease in shareholders' equity

Question 15

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Accepted Answer

A)  Dr. Accounts receivable, Dr. Cash, Cr. Sales revenue 
B)  Dr. Cash, Dr. Accounts payable, Cr. Sales revenue 
C)  Dr. Cash, Cr. Sales revenue 
D)  Dr. Accounts payable, Dr. Accounts receivable, Cr. Sales revenue 
A)  Dr. Accounts receivable, Dr. Cash, Cr. Sales revenue 
B)  Dr. Cash, Dr. Accounts payable, Cr. Sales revenue 
C)  Dr. Cash, Cr. Sales revenue 
D)  Dr. Accounts payable, Dr. Accounts receivable, Cr. Sales revenue

Question 16

Which of the following sequences concerning the accounting cycle is correct?

Accepted Answer

A)  journalize, post, adjusting entries, financial statements 
B)  transaction analysis, trial balance, post, adjusted trial balance 
C)  post, adjusting entries, closing entries, financial statements 
D)  adjusting entries, closing entries, adjusted trial balance, financial statements 
A)  journalize, post, adjusting entries, financial statements 
B)  transaction analysis, trial balance, post, adjusted trial balance 
C)  post, adjusting entries, closing entries, financial statements 
D)  adjusting entries, closing entries, adjusted trial balance, financial statements

Question 17

Which of the following is an example of a temporary account?

Accepted Answer

A)  Accumulated depreciation 
B)  Retained earnings 
C)  Unearned revenues 
D)  Dividends declared 
A)  Accumulated depreciation 
B)  Retained earnings 
C)  Unearned revenues 
D)  Dividends declared

Question 18

What are T accounts and how does this relate to the concept of a normal balance? What is the normal balance for each of the financial statement elements?

Accepted Answer

T accounts are a convention used to illu

Question 19

Prepaid expenses, inventory and accounts payable are examples of permanent accounts.

Accepted Answer

A) True 
 B)False

Question 20

The following accounts are closed directly into retained earnings; therefore, this (these) account(s) are not accounted for separately in the company's chart of accounts:

Accepted Answer

A)  Revenues. 
B)  Expenses. 
C)  Dividends. 
D)  All of the above are correct. 
E)  None of the above are correct. 
A)  Revenues. 
B)  Expenses. 
C)  Dividends. 
D)  All of the above are correct. 
E)  None of the above are correct.

Which of the following accounts normally has a debit balance?

Which statement regarding adjusting entries is not true?

What is a chart of accounts? Identify and describe what is contained in a chart of accounts and what management would take into consideration when developing the chart of accounts?

Which of the following accounts normally has a credit balance?

The chart of accounts is ___.

All Statement of Financial Position accounts increase with debits, while all Statement of Income accounts increase with credits.

Which of the following statements about the trail balance is not true?

Which of the following types of accounts appear on the Statement of Financial Position and Statement of Income respectively?

Arrange the following accounting cycle steps in the proper order by placing numbers 1 through 10 in the blanks provided:

The right side of a T account is also known as the

An adjusting entry can be used to record transactions that have been missed.

Which of the following accounts normally has a debit balance?

Which of the following results in a debit entry to the account identified?

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Which of the following sequences concerning the accounting cycle is correct?

Which of the following is an example of a temporary account?

What are T accounts and how does this relate to the concept of a normal balance? What is the normal balance for each of the financial statement elements?

Prepaid expenses, inventory and accounts payable are examples of permanent accounts.

The following accounts are closed directly into retained earnings; therefore, this (these) account(s) are not accounted for separately in the company's chart of accounts:

Overview of Corporate Financial Reporting

Analyzing Transaction and Their Effect on Financial Statement

Revenue Recognition and the Statement of Income

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

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Exam 3: Double-Entry Accounting and the Accounting Cycle

Which of the following accounts normally has a debit balance?

Which statement regarding adjusting entries is not true?

What is a chart of accounts? Identify and describe what is contained in a chart of accounts and what management would take into consideration when developing the chart of accounts?

Which of the following accounts normally has a credit balance?

The chart of accounts is ___.

All Statement of Financial Position accounts increase with debits, while all Statement of Income accounts increase with credits.

Which of the following statements about the trail balance is not true?

Which of the following types of accounts appear on the Statement of Financial Position and Statement of Income respectively?

Arrange the following accounting cycle steps in the proper order by placing numbers 1 through 10 in the blanks provided:

The right side of a T account is also known as the

An adjusting entry can be used to record transactions that have been missed.

Which of the following accounts normally has a debit balance?

Which of the following results in a debit entry to the account identified?

The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?

Which of the following sequences concerning the accounting cycle is correct?

Which of the following is an example of a temporary account?

What are T accounts and how does this relate to the concept of a normal balance? What is the normal balance for each of the financial statement elements?

Prepaid expenses, inventory and accounts payable are examples of permanent accounts.

The following accounts are closed directly into retained earnings; therefore, this (these) account(s) are not accounted for separately in the company's chart of accounts:

Overview of Corporate Financial Reporting

Analyzing Transaction and Their Effect on Financial Statement

Revenue Recognition and the Statement of Income

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Filters