Question 1

Which one of the following statements is true?

Accepted Answer

A)  External events (transactions) involve interactions between an entity and a party outside the entity. 
B)  Every event or transaction which affects an entity is identified from a source document. 
C)  All economic events can be reliably measured. 
D)  The movement of raw material into production is an external event. 
A)  External events (transactions) involve interactions between an entity and a party outside the entity. 
B)  Every event or transaction which affects an entity is identified from a source document. 
C)  All economic events can be reliably measured. 
D)  The movement of raw material into production is an external event. A

Question 2

Payment is received from customers who were billed earlier for services provided for them.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)  There is no effect on the accounting equation as one asset account increases while another asset account decreases. 
A)  Assets increase and liabilities increase. 
B)  Assets increase and stockholders' equity increases. 
C)  Liabilities increase and stockholders' equity decreases. 
D)  There is no effect on the accounting equation as one asset account increases while another asset account decreases. D

Question 3

A company's chart of accounts will reflect the nature of its business.

Accepted Answer

A) True 
 B)False  True

Question 4

Use the five transactions for Hennigan Company described below to answer the question(s) that follow(s). Dec 1 Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days.
8 Hennigan accepts advance deposits for to ol Company of $\$ 75$.
15 Hennigan receives a bill from Farmer's Electric Company for $\$ 150$. Payment is due in 30 days.
20 Customers are charged $\$ 750$ by Hennigan for tool Company. Payment is due from the customers in 30 days.
31 Hennigan receives $\$ 500$ in payments from the customers that were billed for Company on December 20.
-Refer to the transactions for Hennigan Rentals. ?
Based on the above transactions, how much is still owed to Hennigan on December 31 from its customers?

Accepted Answer

A)  $ -0- 
B)  $ 250 
C)  $ 500 
D)  $ 750 
A)  $ -0- 
B)  $ 250 
C)  $ 500 
D)  $ 750

Question 5

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.
-Cash

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

The issuance of stock decreases a company's assets and increases its stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 8

Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.

Accepted Answer

A) True 
 B)False

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.
-Retained Earnings

Accepted Answer

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

Question 10

Use the selected accounts for Copper Corp.presented below to answer the following question(s). $\begin{array}{lr|} 
& {\text { CASH }} \
\hline 8 / 1 \text { Balance } & 6,000 \
8 / 3 & 500 \
8 / 5 & 400 \
8 / 7 & 900
\end{array}$$\begin{array}{l}
\text { ACCOUNTS RECEIVABLE }\
\begin{array}{ll|ll}
\hline 8 / 2 & 1,800 & 8 / 7 & 900
\end{array}
\end{array}$

$\text { DEPOSITS RECEIVED IN ADVANCE }$
$\begin{array}{l}
\text { (A Liability Account) }\
\begin{array}{r|rr}
\hline  &8/3&500 \
\end{array}
\end{array}$$\begin{array}{l}
\text { SALES }\
\begin{array}{r|rr}
\hline 8 / 2 & 1,800 \
8 / 5 & 400
\end{array}
\end{array}$ ​
-Read the information about Copper Corp. Assuming that there are no other transactions, how much was owed to the club by the membership on August 8th?

Accepted Answer

A)  $1,800 
B)  $1,300 
C)  $ 900 
D)  $ 500 
A)  $1,800 
B)  $1,300 
C)  $ 900 
D)  $ 500

Question 11

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 a(an)

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 12

The Casan Company purchased a delivery van for $100,000 in cash.What is the effect on current assets?

Accepted Answer

A)  Increase in current assets 
B)  Decrease in current assets 
C)  No effect on current assets 
D)  Unable to determine 
A)  Increase in current assets 
B)  Decrease in current assets 
C)  No effect on current assets 
D)  Unable to determine

Question 13

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.
-Office Supplies

Accepted Answer

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

Question 14

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.
-Amounts owed on an open account to a vendor, due in 70 days

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 15

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

Accepted Answer

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

Question 16

The ____________________ principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

Accepted Answer

The answer of The ____________________ principle says that, with a...

Question 17

The initial step in the recording process is posting.

Accepted Answer

A) True 
 B)False

Question 18

A purchase of raw materials from a supplier is a(n) ____________________ event.

Accepted Answer

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

Question 19

A trial balance is the listing of each account and its balance at a specific point in time.

Accepted Answer

A) True 
 B)False

Question 20

Use the five transactions for Hennigan Company described below to answer the question(s) that follow(s). Dec 1 Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days.
8 Hennigan accepts advance deposits for to ol Company of $\$ 75$.
15 Hennigan receives a bill from Farmer's Electric Company for $\$ 150$. Payment is due in 30 days.
20 Customers are charged $\$ 750$ by Hennigan for tool Company. Payment is due from the customers in 30 days.
31 Hennigan receives $\$ 500$ in payments from the customers that were billed for Company on December 20.
-Refer to the transactions for Hennigan 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.

Which one of the following statements is true?

Payment is received from customers who were billed earlier for services provided for them.For this transaction, identify the effect on the accounting equation.

A company's chart of accounts will reflect the nature of its business.

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. -Cash

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

The issuance of stock decreases a company's assets and increases its stockholders' equity.

Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.

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. -Retained Earnings

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 a(an)

The Casan Company purchased a delivery van for $100,000 in cash.What is the effect on current assets?

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. -Office Supplies

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. -Amounts owed on an open account to a vendor, due in 70 days

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

The ____________________ principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

The initial step in the recording process is posting.

A purchase of raw materials from a supplier is a(n) ____________________ event.

A trial balance is the listing of each account and its balance at a specific point in time.

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 True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Exam 3: Processing Accounting Information

Which one of the following statements is true?

Payment is received from customers who were billed earlier for services provided for them.For this transaction, identify the effect on the accounting equation.

A company's chart of accounts will reflect the nature of its business.

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. -Cash

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

The issuance of stock decreases a company's assets and increases its stockholders' equity.

Every transaction affects equal numbers of ledger accounts and is recorded by equal dollar amounts of debits and credits.

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. -Retained Earnings

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 a(an)

The Casan Company purchased a delivery van for $100,000 in cash.What is the effect on current assets?

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. -Office Supplies

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. -Amounts owed on an open account to a vendor, due in 70 days

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

The ____________________ principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

The initial step in the recording process is posting.

A purchase of raw materials from a supplier is a(n) ____________________ event.

A trial balance is the listing of each account and its balance at a specific point in time.

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 True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters