Question 1

The payment of employee salaries has what effect on the accounting equation?

Accepted Answer

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

Question 2

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 3

The credit side of an account is the right side while the debit side is the left side.

Accepted Answer

A) True 
 B)False

Question 4

Would errors made by a bookkeeper in recording journal entries and in posting journal entries to the general ledger be discovered by preparing a trial balance? Explain why or why not for both the journal entry errors and the posting errors.

Accepted Answer

If equal dollar amounts were recorded in

Question 5

Which of the following is an internal event transaction?

Accepted Answer

A)  Life guard salaries are paid by a swim club. 
B)  Dividends are distributed to shareholders. 
C)  Eggs used to make omelets in a restaurant are purchased. 
D)  Potato chips are transferred from the production line to the packaging area. 
A)  Life guard salaries are paid by a swim club. 
B)  Dividends are distributed to shareholders. 
C)  Eggs used to make omelets in a restaurant are purchased. 
D)  Potato chips are transferred from the production line to the packaging area.

Question 6

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit.
-Wages and Salaries Payable

Accepted Answer

A) Debit 
B) Credit 
A) Debit 
B) Credit

Question 7

Which of the following accounts is increased by a credit entry?

Accepted Answer

A)  Sales Revenue 
B)  Salary Expense 
C)  Accounts Receivable 
D)  Dividends 
A)  Sales Revenue 
B)  Salary Expense 
C)  Accounts Receivable 
D)  Dividends

Question 8

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.
-Ten acres of land used as the site for a factory

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 9

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit.
-Advertising Fees Earned

Accepted Answer

A) Debit 
B) Credit 
A) Debit 
B) Credit

Question 10

Parachute Country Club
Use the selected accounts for Parachute Country Club presented below to answer the following questions.  
-Read the information about Parachute Country Club. Which of the following describes the transaction which occurred on August 7?

Accepted Answer

A)  Sold club memberships on credit. 
B)  Cash sales of daily fees. 
C)  Collected an advance deposit in cash. 
D)  Received cash payments of accounts receivable. 
A)  Sold club memberships on credit. 
B)  Cash sales of daily fees. 
C)  Collected an advance deposit in cash. 
D)  Received cash payments of accounts receivable.

Question 11

The issuance of common stock increases both and stockholders' equity.

Accepted Answer

The answer of The issuance of common stock increases both...

Question 12

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company hires a new marketing firm for their new product

Accepted Answer

A) Internal event 
B) External event 
C) Not recorded 
A) Internal event 
B) External event 
C) Not recorded

Question 13

The acquisition of a computer for $1,200, with a down payment of $200 cash and the signing of a $1,000 note payable for the balance increases both assets and .

Accepted Answer

The answer of The acquisition of a computer for $1,200,...

Question 14

A source document is a record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 15

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. In Wolfe's
Trial balance prepared on January 1, 2015, the total of the credit column is:

Accepted Answer

A)  $182,000 
B)  $286,000 
C)  $196,000 
D)  $166,000 
A)  $182,000 
B)  $286,000 
C)  $196,000 
D)  $166,000

Question 16

Payment is made for land purchased earlier on credit. 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 decrease. 
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 decrease. 
D)  Liabilities decrease and assets decrease.

Question 17

A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 18

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Common Stock

Accepted Answer

A) Balance sheet account 
B) Income statement account 
A) Balance sheet account 
B) Income statement account

Question 19

The correct term for an entry made to the left side of an account is:

Accepted Answer

A)  Double-entry system. 
B)  Debit. 
C)  Credit. 
D)  Journalizing. 
A)  Double-entry system. 
B)  Debit. 
C)  Credit. 
D)  Journalizing.

Question 20

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Utilities Expense

Accepted Answer

A) Balance sheet account 
B) Income statement account 
A) Balance sheet account 
B) Income statement account

The payment of employee salaries has what effect on the accounting equation?

Which of the following statements is false?

The credit side of an account is the right side while the debit side is the left side.

Would errors made by a bookkeeper in recording journal entries and in posting journal entries to the general ledger be discovered by preparing a trial balance? Explain why or why not for both the journal entry errors and the posting errors.

Which of the following is an internal event transaction?

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Wages and Salaries Payable

Which of the following accounts is increased by a credit entry?

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. -Ten acres of land used as the site for a factory

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Advertising Fees Earned

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions. -Read the information about Parachute Country Club. Which of the following describes the transaction which occurred on August 7?

The issuance of common stock increases both and stockholders' equity.

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new marketing firm for their new product

The acquisition of a computer for $1,200, with a down payment of $200 cash and the signing of a $1,000 note payable for the balance increases both assets and .

A source document is a record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders' equity.

Payment is made for land purchased earlier on credit. For this transaction, identify the effect on the accounting equation.

A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger.

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Common Stock

The correct term for an entry made to the left side of an account is:

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Utilities Expense

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

The payment of employee salaries has what effect on the accounting equation?

Which of the following statements is false?

The credit side of an account is the right side while the debit side is the left side.

Would errors made by a bookkeeper in recording journal entries and in posting journal entries to the general ledger be discovered by preparing a trial balance? Explain why or why not for both the journal entry errors and the posting errors.

Which of the following is an internal event transaction?

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Wages and Salaries Payable

Which of the following accounts is increased by a credit entry?

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. -Ten acres of land used as the site for a factory

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Advertising Fees Earned

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following questions. -Read the information about Parachute Country Club. Which of the following describes the transaction which occurred on August 7?

The issuance of common stock increases both and stockholders' equity.

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new marketing firm for their new product

The acquisition of a computer for $1,200, with a down payment of $200 cash and the signing of a $1,000 note payable for the balance increases both assets and .

A source document is a record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders' equity.

Payment is made for land purchased earlier on credit. For this transaction, identify the effect on the accounting equation.

A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger.

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Common Stock

The correct term for an entry made to the left side of an account is:

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Utilities Expense

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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