Question 1

Dividends are a determinant of net income.

Accepted Answer

A) True 
 B)False  False

Question 2

Given a current ratio of 5 to 3, what is the effect of paying a supplier within 30 days of the purchase?

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. A

Question 3

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  False

Question 4

A trial balance can be as informal as an adding machine tape with the account titles penciled in next to the debit and credit amounts.

Accepted Answer

A) True 
 B)False

Question 5

Owners of Tri-States Industries, Ralph and Maureen, are sent a dividend check from the company. For this transaction, what is the effect on the accounting equation for Tri-States Industries?

Accepted Answer

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

Question 6

Explain what the chart of accounts is and how its numbering system works.

Accepted Answer

Companies need a way to organize the lar

Question 7

An is a list of each account and its balance at a specific point in time.

Accepted Answer

The answer of An is a list of each account...

Question 8

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 in the accounts by:

Accepted Answer

A)  increasing Office Equipment for $2,600, increasing Accounts Receivable for $1,200, and increasing Accounts Payable for $1,400. 
B)  increasing Accounts Receivable for $1,400, increasing Cash for $1,200, and decreasing Office Equipment for $2,600. 
C)  increasing Office Equipment for $2,600, decreasing Cash for $1,200, and increasing Accounts Payable for $1,400. 
D)  increasing Office Equipment for $2,600, decreasing Cash for $1,200, and decreasing Accounts Receivable for $1,400. 
A)  increasing Office Equipment for $2,600, increasing Accounts Receivable for $1,200, and increasing Accounts Payable for $1,400. 
B)  increasing Accounts Receivable for $1,400, increasing Cash for $1,200, and decreasing Office Equipment for $2,600. 
C)  increasing Office Equipment for $2,600, decreasing Cash for $1,200, and increasing Accounts Payable for $1,400. 
D)  increasing Office Equipment for $2,600, decreasing Cash for $1,200, and decreasing Accounts Receivable for $1,400.

Question 9

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 10

The left or debit side of a liability account is used to record .

Accepted Answer

The answer of The left or debit side of a...

Question 11

Which of the following transactions affects the liabilities for Gravette, Inc.?

Accepted Answer

A)  Supplies are purchased for cash by Gravette. 
B)  Gravette places an order for merchandise with a supplier; the merchandise will be shipped to Ernest White in 60 days. 
C)  The owners of Gravette invest $100,000 in the company. 
D)  Payment is made on a bank loan which Gravette had obtained 6 months ago. 
A)  Supplies are purchased for cash by Gravette. 
B)  Gravette places an order for merchandise with a supplier; the merchandise will be shipped to Ernest White in 60 days. 
C)  The owners of Gravette invest $100,000 in the company. 
D)  Payment is made on a bank loan which Gravette had obtained 6 months ago.

Question 12

One effect on the accounting equation when a firm lends money is:

Accepted Answer

A)  stockholders' equity decreases. 
B)  liabilities decrease. 
C)  liabilities increase. 
D)  total assets remain the same. 
A)  stockholders' equity decreases. 
B)  liabilities decrease. 
C)  liabilities increase. 
D)  total assets remain the same.

Question 13

Which one of the following best defines an external event in terms of accounting?

Accepted Answer

A)  A measured event that must be recognized. 
B)  An event recognized in a set of financial statements. 
C)  A happening of consequence to an entity. 
D)  An interaction between an entity and its environment. 
A)  A measured event that must be recognized. 
B)  An event recognized in a set of financial statements. 
C)  A happening of consequence to an entity. 
D)  An interaction between an entity and its environment.

Question 14

Krenshaw Rentals
Use the five transactions for Krenshaw Rentals described below to answer the questions that follows.
Oct 1 Krenshaw purchases two new saws on credit at $375 each. The saws are added to
Krenshaw's rental inventory. Payment is due in 30 days.
8 Krenshaw accepts advance deposits for tool rentals of $75.
15 Krenshaw receives a bill from Farmer's Electric Company for $150. Payment is due
in 30 days.
20 Customers are charged $750 by Krenshaw for tool rentals. Payment is due from the customers in 30 days.
31 Krenshaw receives $500 in payments from the customers that were billed for rentals on October 20.
-Refer to the transactions for Krenshaw Rentals. Based on the October 31 transaction, Krenshaw will record which of the following in its accounting records?

Accepted Answer

A)  A credit in Accounts Payable for $500. 
B)  A credit in Accounts Receivable for $500. 
C)  A debit in Accounts Payable for $500. 
D)  A debit in Accounts Receivable for $500. 
A)  A credit in Accounts Payable for $500. 
B)  A credit in Accounts Receivable for $500. 
C)  A debit in Accounts Payable for $500. 
D)  A debit in Accounts Receivable for $500.

Question 15

The totaling of each side of a T account is known as .

Accepted Answer

The answer of The totaling of each side of a...

Question 16

A list of all asset, liability, stockholders' equity, revenue, and expense accounts, along with their assigned account numbers, which are used by a company 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 17

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...

Question 18

An internal or external event must be to be recognized.

Accepted Answer

The answer of An internal or external event must be...

Question 19

If the sum of the debits and credits in a trial balance is not equal, then:

Accepted Answer

A)  there is no concern because the two amounts are not meant to be equal. 
B)  the chart of accounts also does not balance. 
C)  it is safe to proceed with the preparation of financial statements. 
D)  most likely an error was made in posting journal entries to the general ledger or in preparing the trial balance. 
A)  there is no concern because the two amounts are not meant to be equal. 
B)  the chart of accounts also does not balance. 
C)  it is safe to proceed with the preparation of financial statements. 
D)  most likely an error was made in posting journal entries to the general ledger or in preparing the trial balance.

Question 20

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.

Dividends are a determinant of net income.

Given a current ratio of 5 to 3, what is the effect of paying a supplier within 30 days of the purchase?

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.

A trial balance can be as informal as an adding machine tape with the account titles penciled in next to the debit and credit amounts.

Owners of Tri-States Industries, Ralph and Maureen, are sent a dividend check from the company. For this transaction, what is the effect on the accounting equation for Tri-States Industries?

Explain what the chart of accounts is and how its numbering system works.

An is a list of each account and its balance at a specific point in time.

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 in the accounts by:

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

The left or debit side of a liability account is used to record .

Which of the following transactions affects the liabilities for Gravette, Inc.?

One effect on the accounting equation when a firm lends money is:

Which one of the following best defines an external event in terms of accounting?

The totaling of each side of a T account is known as .

A list of all asset, liability, stockholders' equity, revenue, and expense accounts, along with their assigned account numbers, which are used by a company is aan:

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

An internal or external event must be to be recognized.

If the sum of the debits and credits in a trial balance is not equal, then:

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

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

Dividends are a determinant of net income.

Given a current ratio of 5 to 3, what is the effect of paying a supplier within 30 days of the purchase?

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.

A trial balance can be as informal as an adding machine tape with the account titles penciled in next to the debit and credit amounts.

Owners of Tri-States Industries, Ralph and Maureen, are sent a dividend check from the company. For this transaction, what is the effect on the accounting equation for Tri-States Industries?

Explain what the chart of accounts is and how its numbering system works.

An is a list of each account and its balance at a specific point in time.

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 in the accounts by:

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

The left or debit side of a liability account is used to record .

Which of the following transactions affects the liabilities for Gravette, Inc.?

One effect on the accounting equation when a firm lends money is:

Which one of the following best defines an external event in terms of accounting?

The totaling of each side of a T account is known as .

A list of all asset, liability, stockholders' equity, revenue, and expense accounts, along with their assigned account numbers, which are used by a company is aan:

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

An internal or external event must be to be recognized.

If the sum of the debits and credits in a trial balance is not equal, then:

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

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