Question 1

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 2

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

Accepted Answer

A)  Cash 
B)  Equipment 
C)  Accounts receivable 
D)  None of these choices. 
A)  Cash 
B)  Equipment 
C)  Accounts receivable 
D)  None of these choices.

Question 3

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)  None of these choices. 
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)  None of these choices.

Question 4

Double-entry accounting is best characterized as:

Accepted Answer

A)  The number of debit entries posted to the ledger equals the number of credit entries. 
B)  The number of ledger accounts with debit balances is equal to the number with credit balances. 
C)  Every transaction affects both an asset account and either a liability account or a stockholders' equity account. 
D)  The total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries. 
A)  The number of debit entries posted to the ledger equals the number of credit entries. 
B)  The number of ledger accounts with debit balances is equal to the number with credit balances. 
C)  Every transaction affects both an asset account and either a liability account or a stockholders' equity account. 
D)  The total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries.

Question 5

Use the following five transactions for Monaco & Associates, Inc.to answer the question(s). $$\begin{array}{lll}
october&1&\text { Bills are sent to clients for services provided in September in the amount of  \$ 800 .}\
&9&\text { Dravo Co. delivers office fumiture (\$ 1,060) and office supplies  (\$ 160) to }\
&&\text { Monaco leaving an invoice for  \$ 1,220 .}\

&15&\text { Payment is made to Dravo Co. for the furniture and office supplies delivered }\
&&\text { on October 9.}\
&23&\text { A bill for  \$ 430 for electricity for the month of September is received and will }\
&&\text { be paid on its due date in November.}\
&31&\text { Salaries of  \$ 850  are paid to employees.}\
\end{array}$$
-See the transactions to Monaco & Associates. The journal entry to record the October 9 transaction will include a credit of $1,220 to

Accepted Answer

A)  Furniture and Supplies 
B)  Cash 
C)  Accounts Payable 
D)  Administrative Expenses 
A)  Furniture and Supplies 
B)  Cash 
C)  Accounts Payable 
D)  Administrative Expenses

Question 6

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

Question 7

The use of equipment in a company is an external event.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

Accepted Answer

A) True 
 B)False

Question 10

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.
-Prepaid Insurance

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

Which of the following will not cause a trial balance to be out of balance?

Accepted Answer

A)  The balance for an account is incorrectly computed. 
B)  A debit entry is posted as a credit. 
C)  A credit entry is posted to the wrong account as a credit. 
D)  An account is accidentally omitted from the trial balance. 
A)  The balance for an account is incorrectly computed. 
B)  A debit entry is posted as a credit. 
C)  A credit entry is posted to the wrong account as a credit. 
D)  An account is accidentally omitted from the trial balance.

Question 13

The following transactions occurred during March, the first month of operations for Canyon Products, Inc.: 1.Issued 50,000 shares of capital stock in exchange for $600,000 cash
2)Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance.
3)Made a $60,000 cash payment on the note payable from the purchase of land.
4)Purchased equipment on credit from Burton, Inc.for $63,000.
What is the balance in the Cash account at the end of March?

Accepted Answer

A)  $810,000 
B)  $210,000 
C)  $600,000 
D)  $390,000 
A)  $810,000 
B)  $210,000 
C)  $600,000 
D)  $390,000

Question 14

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 15

Under the double-entry system of accounting, every transaction is entered in at least two accounts on opposite sides of T accounts.

Accepted Answer

A) True 
 B)False

Question 16

Credits are always on the _____________________ side of the T account.

Accepted Answer

The answer of Credits are always on the _____________________ side...

Question 17

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 on Copper Corp. On which date did the country club collect an advance deposit?

Accepted Answer

A)  August 2 
B)  August 3 
C)  August 5 
D)  August 7 
A)  August 2 
B)  August 3 
C)  August 5 
D)  August 7

Question 18

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.
-Claims by the owners on the undistributed net income of a business

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 19

Dividends are a determinant of net income.

Accepted Answer

A) True 
 B)False

Question 20

All of the following events (transactions) would be identified from standard source documents except for

Accepted Answer

A)  freight charges for merchandise purchased from suppliers. 
B)  the amount to be paid to settle a lawsuit for discrimination in hiring employees. 
C)  wages to be paid to hourly employees. 
D)  commissions earned by sales employees. 
A)  freight charges for merchandise purchased from suppliers. 
B)  the amount to be paid to settle a lawsuit for discrimination in hiring employees. 
C)  wages to be paid to hourly employees. 
D)  commissions earned by sales employees.

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

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

Which of the following is an internal event (transaction)?

Double-entry accounting is best characterized as:

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

The use of equipment in a company is an external event.

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

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

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. -Prepaid Insurance

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

Which of the following will not cause a trial balance to be out of balance?

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

Under the double-entry system of accounting, every transaction is entered in at least two accounts on opposite sides of T accounts.

Credits are always on the _____________________ side of the T account.

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. -Claims by the owners on the undistributed net income of a business

Dividends are a determinant of net income.

All of the following events (transactions) would be identified from standard source documents except for

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

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Exam 3: Processing Accounting Information

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

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

Which of the following is an internal event (transaction)?

Double-entry accounting is best characterized as:

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

The use of equipment in a company is an external event.

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

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

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. -Prepaid Insurance

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

Which of the following will not cause a trial balance to be out of balance?

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

Under the double-entry system of accounting, every transaction is entered in at least two accounts on opposite sides of T accounts.

Credits are always on the _____________________ side of the T account.

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. -Claims by the owners on the undistributed net income of a business

Dividends are a determinant of net income.

All of the following events (transactions) would be identified from standard source documents except for

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