Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

If the landlord has rent , then the tenant has rent .

Accepted Answer

A)  revenue; revenue 
B)  revenue; expense 
C)  expense; revenue 
D)  expense; expense 
A)  revenue; revenue 
B)  revenue; expense 
C)  expense; revenue 
D)  expense; expense

Question 3

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 4

Explain the purpose of a trial balance and the limitation of the trial balance.

Accepted Answer

A trial balance proves the equality of d

Question 5

Payment of a dividend increases both cash and stockholders' equity of the distributing business.

Accepted Answer

A) True 
 B)False

Question 6

Your bookkeeper is off for the day and you are trying to figure out the last entry she recorded in the journal. Unfortunately, she only recorded part of the transaction as a decrease of $4,400 in the Accounts Payable account. It is possible that this partial entry could correspond to:

Accepted Answer

A)  a purchase of equipment costing $4,400 on credit. 
B)  a payment of $4,400 to a supplier to settle a balance due. 
C)  a $4,400 sale to a customer. 
D)  a $4,400 issuance of the company's capital stock. 
A)  a purchase of equipment costing $4,400 on credit. 
B)  a payment of $4,400 to a supplier to settle a balance due. 
C)  a $4,400 sale to a customer. 
D)  a $4,400 issuance of the company's capital stock.

Question 7

Wolfe Inc.
Wolfe Inc. reports these account balances at January 1, 2015:
  
-See the account balances for Wolfe Inc. On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable. On January 31, 2015, the total liabilities are:

Accepted Answer

A)  $0 
B)  $56,000 
C)  $41,000 
D)  $30,000 
A)  $0 
B)  $56,000 
C)  $41,000 
D)  $30,000

Question 8

The record used to accumulate monetary information for each individual asset, liability, stockholders' equity, revenue, and expense item 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 9

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all.
-A checking account at a bank

Accepted Answer

A) Cash 
B) Prepaid Asset 
C) Investments 
D) Taxes Payable 
E) Preferred Stock
F)Accounts Receivable
G)Land
H)Accounts Payable
I)Retained Earnings
J)Notes Receivable
K)Buildings
L)Notes Payable
M)Common Stock 
A) Cash 
B) Prepaid Asset 
C) Investments 
D) Taxes Payable 
E) Preferred Stock
F)Accounts Receivable
G)Land
H)Accounts Payable
I)Retained Earnings
J)Notes Receivable
K)Buildings
L)Notes Payable
M)Common Stock

Question 10

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 15 transaction, Farmer's Electric will record which of the following in its accounting records?

Accepted Answer

A)  A credit in Accounts Payable for $150. 
B)  A credit in Accounts Receivable for $150. 
C)  A debit in Accounts Payable for $150. 
D)  A debit in Accounts Receivable for $150. 
A)  A credit in Accounts Payable for $150. 
B)  A credit in Accounts Receivable for $150. 
C)  A debit in Accounts Payable for $150. 
D)  A debit in Accounts Receivable for $150.

Question 11

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all.
-A warehouse used to store equipment

Accepted Answer

A) Cash 
B) Prepaid Asset 
C) Investments 
D) Taxes Payable 
E) Preferred Stock
F)Accounts Receivable
G)Land
H)Accounts Payable
I)Retained Earnings
J)Notes Receivable
K)Buildings
L)Notes Payable
M)Common Stock 
A) Cash 
B) Prepaid Asset 
C) Investments 
D) Taxes Payable 
E) Preferred Stock
F)Accounts Receivable
G)Land
H)Accounts Payable
I)Retained Earnings
J)Notes Receivable
K)Buildings
L)Notes Payable
M)Common Stock

Question 12

The is the file or book that contains all of a company's accounts.

Accepted Answer

The answer of The is the file or book that...

Question 13

Transactions are recorded in the general journal in:

Accepted Answer

A)  alphabetical order. 
B)  account number order. 
C)  chronological order. 
D)  financial statement order. 
A)  alphabetical order. 
B)  account number order. 
C)  chronological order. 
D)  financial statement order.

Question 14

A purchase of raw materials from a supplier is an event.

Accepted Answer

The answer of A purchase of raw materials from a...

Question 15

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 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 16

All of the following accounts have normal credit balances except:

Accepted Answer

A)  Accounts Payable. 
B)  Common Stock Capital Stock. 
C)  Investments. 
D)  Service Revenue. 
A)  Accounts Payable. 
B)  Common Stock Capital Stock. 
C)  Investments. 
D)  Service Revenue.

Question 17

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is aan:

Accepted Answer

A)  Account. 
B)  General Journal. 
C)  Trial Balance. 
D)  Chart of Accounts. 
A)  Account. 
B)  General Journal. 
C)  Trial Balance. 
D)  Chart of Accounts.

Question 18

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 19

Use the following five transactions for Morton & Associates, Inc. to answer the questions.
May 1 Bills are sent to clients for services provided in April in the amount of $800.
9 Techno, Inc. delivers office furniture $1,060 and office supplies $160 to Morton leaving an invoice for $1,220.
15 Payment is made to Techno, Inc. for the furniture and office supplies delivered on May 9.
23 A bill for $430 for electricity for the month of April is received and will be paid on its due date in June.
31 Salaries of $850 are paid to employees.
-See the transactions to Morton & Associates. The journal entry to record the May 15 transaction will include a decrease of $1,220 to

Accepted Answer

A)  Accounts Receivable 
B)  Unearned Revenue 
C)  Prepaid Expenses 
D)  Accounts Payable 
A)  Accounts Receivable 
B)  Unearned Revenue 
C)  Prepaid Expenses 
D)  Accounts Payable

Question 20

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.

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

If the landlord has rent , then the tenant has rent .

Credit entries are used to:

Explain the purpose of a trial balance and the limitation of the trial balance.

Payment of a dividend increases both cash and stockholders' equity of the distributing business.

Your bookkeeper is off for the day and you are trying to figure out the last entry she recorded in the journal. Unfortunately, she only recorded part of the transaction as a decrease of $4,400 in the Accounts Payable account. It is possible that this partial entry could correspond to:

Wolfe Inc. Wolfe Inc. reports these account balances at January 1, 2015: -See the account balances for Wolfe Inc. On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable. On January 31, 2015, the total liabilities are:

The record used to accumulate monetary information for each individual asset, liability, stockholders' equity, revenue, and expense item is aan:

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all. -A checking account at a bank

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all. -A warehouse used to store equipment

The is the file or book that contains all of a company's accounts.

Transactions are recorded in the general journal in:

A purchase of raw materials from a supplier is an event.

All of the following accounts have normal credit balances except:

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is aan:

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

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

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

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

If the landlord has rent , then the tenant has rent .

Credit entries are used to:

Explain the purpose of a trial balance and the limitation of the trial balance.

Payment of a dividend increases both cash and stockholders' equity of the distributing business.

Your bookkeeper is off for the day and you are trying to figure out the last entry she recorded in the journal. Unfortunately, she only recorded part of the transaction as a decrease of $4,400 in the Accounts Payable account. It is possible that this partial entry could correspond to:

Wolfe Inc. Wolfe Inc. reports these account balances at January 1, 2015: -See the account balances for Wolfe Inc. On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable. On January 31, 2015, the total liabilities are:

The record used to accumulate monetary information for each individual asset, liability, stockholders' equity, revenue, and expense item is aan:

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all. -A checking account at a bank

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all. -A warehouse used to store equipment

The is the file or book that contains all of a company's accounts.

Transactions are recorded in the general journal in:

A purchase of raw materials from a supplier is an event.

All of the following accounts have normal credit balances except:

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is aan:

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

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

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