Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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 1 transaction will include a debit of $800 to

Accepted Answer

A)  Sales Revenue 
B)  Accounts Receivable 
C)  Cash 
D)  Retained Earnings 
A)  Sales Revenue 
B)  Accounts Receivable 
C)  Cash 
D)  Retained Earnings

Question 4

Every business transaction is recorded by a debit to a balance sheet account and a credit to an income statement account.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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.
-Capital Stock

Accepted Answer

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

Question 8

All of the following accounts have normal debit balances except

Accepted Answer

A)  Accounts Receivable 
B)  Dividends 
C)  Office Supplies Expense 
D)  Sales 
A)  Accounts Receivable 
B)  Dividends 
C)  Office Supplies Expense 
D)  Sales

Question 9

The payment of wages to employees is an internal event.

Accepted Answer

A) True 
 B)False

Question 10

The general journal is often used to record repetitive transactions.

Accepted Answer

A) True 
 B)False

Question 11

An internal or external event must be ____________________ to be recognized.

Accepted Answer

The answer of An internal or external event must be...

Question 12

Which one of the following best defines an external event in terms of accounting?

Accepted Answer

A)  A measured event that must be recognized. 
B)  An event recognized in a set of financial statements. 
C)  A happening of consequence to an entity. 
D)  An interaction between an entity and its environment. 
A)  A measured event that must be recognized. 
B)  An event recognized in a set of financial statements. 
C)  A happening of consequence to an entity. 
D)  An interaction between an entity and its environment.

Question 13

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company takes a count of the raw materials inventory.

Accepted Answer

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

Question 14

When making a general journal entry, there can only be one debit and one credit.

Accepted Answer

A) True 
 B)False

Question 15

Under the cost principle, assets are always carried at their original cost or historical cost.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements regarding the activities of Casion Corp.is true?

Accepted Answer

A)  Revenues decrease Forman's stockholders' equity. 
B)  Expenses decrease Marcus' stockholders' equity. 
C)  Expenses increase Marcus' stockholders' equity. 
D)  None of these answer choices is correct. 
A)  Revenues decrease Forman's stockholders' equity. 
B)  Expenses decrease Marcus' stockholders' equity. 
C)  Expenses increase Marcus' stockholders' equity. 
D)  None of these answer choices is correct.

Question 17

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

Accepted Answer

A)  stockholders' equity decreases. 
B)  assets increase. 
C)  liabilities decrease. 
D)  assets decrease. 
A)  stockholders' equity decreases. 
B)  assets increase. 
C)  liabilities decrease. 
D)  assets decrease.

Question 18

The record in which transactions are initially recorded in chronological order as they occur is a(an)

Accepted Answer

A)  General journal 
B)  Account of events 
C)  General Ledger 
D)  Chart of Accounts 
A)  General journal 
B)  Account of events 
C)  General Ledger 
D)  Chart of Accounts

Question 19

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company hires a new secretary.

Accepted Answer

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

Question 20

With few exceptions, the balance of all accounts should be on the side of the T account that causes the increase.

Accepted Answer

A) True 
 B)False

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

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

Every business transaction is recorded by a debit to a balance sheet account and a credit to an income statement 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. -Ten acres of land used as the site for a factory

Which of the following statements is false?

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. -Capital Stock

All of the following accounts have normal debit balances except

The payment of wages to employees is an internal event.

The general journal is often used to record repetitive transactions.

An internal or external event must be ____________________ to be recognized.

Which one of the following best defines an external event in terms of accounting?

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company takes a count of the raw materials inventory.

When making a general journal entry, there can only be one debit and one credit.

Under the cost principle, assets are always carried at their original cost or historical cost.

Which of the following statements regarding the activities of Casion Corp.is true?

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

The record in which transactions are initially recorded in chronological order as they occur is a(an)

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new secretary.

With few exceptions, the balance of all accounts should be on the side of the T account that causes the increase.

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

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

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

Every business transaction is recorded by a debit to a balance sheet account and a credit to an income statement 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. -Ten acres of land used as the site for a factory

Which of the following statements is false?

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. -Capital Stock

All of the following accounts have normal debit balances except

The payment of wages to employees is an internal event.

The general journal is often used to record repetitive transactions.

An internal or external event must be ____________________ to be recognized.

Which one of the following best defines an external event in terms of accounting?

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company takes a count of the raw materials inventory.

When making a general journal entry, there can only be one debit and one credit.

Under the cost principle, assets are always carried at their original cost or historical cost.

Which of the following statements regarding the activities of Casion Corp.is true?

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

The record in which transactions are initially recorded in chronological order as they occur is a(an)

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new secretary.

With few exceptions, the balance of all accounts should be on the side of the T account that causes the increase.

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