Exam 3: Processing Accounting Information

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. -An amount owed by a customer

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

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

During November, ABC, Inc.purchased office supplies for cash.The supplies will be used in November.What effect does this purchase transaction have on the accounting equation?

Which of the following statements is true?

Only events that can be measured will be reflected in the journal entries.

Debits are good and credits are bad in financial terms.

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 a(an)

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

An entry made to the right side of an account is called a

A trial balance is a financial statement.

Presented below are a list of source documents and a list of transactions.Using the identification letters before each source document, indicate next to each transaction which source document serves as evidence for the recording of the transaction. A) Purchase invoice B) Salesinvoice C) Cash register tape D) Check E) Time card F) Monthly statement G) Promissory note H) Stock certificate Transactions ___    (1) Supplies are purchased on credit. ___    (2) Cash sales are made to customers. ___    (3) Land is acquired by signing an agreement to pay a stated amount plus interest in one year. ___    (4) Utilities expense is recorded for the current month. ___    (5) The weekly payroll is paid. ___    (6) Merchandise is sold to a customer on account. ___    (7) Payment is made for utility bills which were recorded earlier. ___    (8) Investors purchase additional shares of the company's stock directly from the company.

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. -Investments

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

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

XYZ Corp.made cash sales to customers.What effect does this transaction have on the accounting equation?

Wolfe Inc.reports these account balances at January 1, 2016: Retained Earnings \ 49,000 Accounts Receivable 20,000 Accounts Payable 24,000 Capital Stock 185,000 Land 153,000 Cash 13,000 Equipment 20,000 Notes Payable 28,000 Buildings 80,000 ​ ​ -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 31, 2016, the total of the credit column is:

What type of account is increased with a debit but is a decrease to retained earnings?

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -A customer pays its open account.

The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is a(an)