Question 1

A compound journal entry affects

Accepted Answer

A)  a balance sheet and an income statement account. 
B)  a permanent and a temporary account. 
C)  two accounts in stockholders' equity. 
D)  a "regular" account and a contra-account. 
E)  more than two accounts. 
A)  a balance sheet and an income statement account. 
B)  a permanent and a temporary account. 
C)  two accounts in stockholders' equity. 
D)  a "regular" account and a contra-account. 
E)  more than two accounts.

Question 2

A deferred expense is an asset account that represents the prepayment of specified item.

Accepted Answer

A) True 
 B)False

Question 3

On January 1, 2010, Lio Corporation has assets equal to four times the amount of its liabilities. Total liabilities on January 1, 2010, are $1,000,000. During January 2010, Lio Corporation engaged in the following five transactions:
January 5	Purchased equipment for $100,000 on credit.
January 7	Purchased inventory for $63,000 cash.
January 14	Made a $25,000 partial payment for equipment purchased on January 5.
January 28	Purchased office supplies for $2,000 cash.
January 31	Sold common stock for $100,000 cash.
Required:
A)	Determine Lio Corporation's total assets and total stockholders' equity on January 1, 2010.
B)	Determine Lio Corporation's total assets, liabilities, and stockholder's equity on January 31, 2010.

Accepted Answer

a. The balance sheet equation

Question 4

Which of the following reflects the normal balances of the listed types of accounts?

Accepted Answer

The answer of Which of the following reflects the normal...

Question 5

Revenues normally have ___ balances and cause stockholders' equity to ____.

Accepted Answer

A)  debit; increase 
B)  debit; decrease 
C)  credit; increase 
D)  credit; decrease 
E)  debit; remain unchanged 
A)  debit; increase 
B)  debit; decrease 
C)  credit; increase 
D)  credit; decrease 
E)  debit; remain unchanged

Question 6

Quick Co. owed Lars Co. $15,000. Quick's accountant misread the amount owed and wrote a check to Lars for $18,000. If a balance sheet is prepared immediately after this payment, Quick will show a

Accepted Answer

A)  credit-balanced Account Payable to Lars Co. 
B)  debit-balanced Account Payable to Lars Co. 
C)  contra-liability account to Lars Co. 
D)  debit-balanced Account Receivable from Lars Co. 
E)  debit-balanced deferred expense from Lars Co. 
A)  credit-balanced Account Payable to Lars Co. 
B)  debit-balanced Account Payable to Lars Co. 
C)  contra-liability account to Lars Co. 
D)  debit-balanced Account Receivable from Lars Co. 
E)  debit-balanced deferred expense from Lars Co.

A compound journal entry affects

A deferred expense is an asset account that represents the prepayment of specified item.

Which of the following reflects the normal balances of the listed types of accounts?

Revenues normally have _ balances and cause stockholders' equity to __.

Quick Co. owed Lars Co. $15,000. Quick's accountant misread the amount owed and wrote a check to Lars for $18,000. If a balance sheet is prepared immediately after this payment, Quick will show a

An Introduction to the Role of Accounting in the Business World

Concepts and Elements Underlying Accounting

Cash, Short-Term Investments and Accounts Receivable

Inventory

Long-Term Assets: Property, Plant Equipment and Intangibles

Liabilities

Stockholders Equity

The Corporate Income Statement and Financial Analysis

Statement of Cash Flows

Managerial Accounting

Cost-Volume-Profit Analysis

The Master Budget

Activity-Based Management and Performance Measurementreward

Filters

Exam 3: The Mechanics of Double-Entry Bookkeeping

A compound journal entry affects

A deferred expense is an asset account that represents the prepayment of specified item.

Which of the following reflects the normal balances of the listed types of accounts?

Revenues normally have ___ balances and cause stockholders' equity to ____.

Quick Co. owed Lars Co. $15,000. Quick's accountant misread the amount owed and wrote a check to Lars for $18,000. If a balance sheet is prepared immediately after this payment, Quick will show a

An Introduction to the Role of Accounting in the Business World

Concepts and Elements Underlying Accounting

Cash, Short-Term Investments and Accounts Receivable

Inventory

Long-Term Assets: Property, Plant Equipment and Intangibles

Liabilities

Stockholders Equity

The Corporate Income Statement and Financial Analysis

Statement of Cash Flows

Managerial Accounting

Cost-Volume-Profit Analysis

The Master Budget

Activity-Based Management and Performance Measurementreward

Filters

Revenues normally have _ balances and cause stockholders' equity to __.