Question 1

The entry to record a purchase of supplies on account would include a:

Accepted Answer

A) debit to cash 
B) debit to accounts receivable 
C) credit to supplies 
D) credit to accounts payable 
A) debit to cash 
B) debit to accounts receivable 
C) credit to supplies 
D) credit to accounts payable D

Question 2

Where would the issuance of stock for cash be reported?

Accepted Answer

A) On both the income statement and the statement of cash flows 
B) On both the statement of cash flows and the statement of stockholders' equity 
C) On the statement of cash flows but not the statement of stockholders' equity 
D) On neither the income statement nor the statement of cash flows 
A) On both the income statement and the statement of cash flows 
B) On both the statement of cash flows and the statement of stockholders' equity 
C) On the statement of cash flows but not the statement of stockholders' equity 
D) On neither the income statement nor the statement of cash flows B

Question 3

Net income would decrease as a result of which of the following adjustments:

Accepted Answer

A) Adjusting an unearned revenue account 
B) Accruing a revenue 
C) Accruing an expense 
D) Billing a customer for services rendered 
A) Adjusting an unearned revenue account 
B) Accruing a revenue 
C) Accruing an expense 
D) Billing a customer for services rendered C

Question 4

After closing entries are made which accounts not have balances?

Accepted Answer

A) Assets Liabilities and Owners' Equity 
B) Revenues Expenses and Liabilities 
C) Assets Revenues and Owners' Equity 
D) Revenues,Expenses,Gains and Losses 
A) Assets Liabilities and Owners' Equity 
B) Revenues Expenses and Liabilities 
C) Assets Revenues and Owners' Equity 
D) Revenues,Expenses,Gains and Losses

Question 5

Net income would increase as a result of which of the following adjustments:

Accepted Answer

A) Recording depreciation 
B) Accruing a revenue 
C) Accruing an expense 
D) Adjusting a prepaid account 
A) Recording depreciation 
B) Accruing a revenue 
C) Accruing an expense 
D) Adjusting a prepaid account

Question 6

Which of the following appears on both the income statement and the statement of stockholders' equity?

Accepted Answer

A) Net income 
B) Operating income 
C) Retained earnings 
D) Unearned revenue 
A) Net income 
B) Operating income 
C) Retained earnings 
D) Unearned revenue

Question 7

The following information was taken from Dukas Corporation's adjusted trial balance on December 31,2010
   Required:
(A.)Prepare the income statement.
(B.)Prepare the December 31 balance sheet.

Accepted Answer

(A.)Net in

Question 8

Place each of the following accounting elements in the financial statement(s)in which it would be reported:
Inventory
Credit sales
Cash dividends
Common stock
Expenses

Accepted Answer

The answer of Place each of the following accounting elements...

Question 9

All adjusting entries involve

Accepted Answer

A) credits to income statement accounts 
B) debits to income statement account 
C) at least one income statement and one balance sheet account 
D) the decrease of an asset or the increase in a liability account 
A) credits to income statement accounts 
B) debits to income statement account 
C) at least one income statement and one balance sheet account 
D) the decrease of an asset or the increase in a liability account

Question 10

On September 1,2010,Olpe Corporation paid $2,400 for a 1-year insurance policy.What amount of expense should Olpe report for the year ended December 31,2010?

Accepted Answer

A) $800 
B) $1,200 
C) $2,400 
D) $0 
A) $800 
B) $1,200 
C) $2,400 
D) $0

Question 11

Accountants use the term "debit" to refer to

Accepted Answer

A) events that are negative for the firm 
B) a reduction in amounts owed 
C) events that increases accounts 
D) an amount entered on the left-hand side of an account 
A) events that are negative for the firm 
B) a reduction in amounts owed 
C) events that increases accounts 
D) an amount entered on the left-hand side of an account

Question 12

Computek,Inc.has one revenue account,service revenue,which is to be closed out at year end.The closing entry would be:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 13

Only one of the following could be an adjusting entry which one is it?

Accepted Answer

A) An increase in an asset and an increase in a liability 
B) A increase in an expense and an increase in a revenue 
C) A decrease in an asset and a decrease in a expense 
D) An decrease in an asset and an increase in a liability 
A) An increase in an asset and an increase in a liability 
B) A increase in an expense and an increase in a revenue 
C) A decrease in an asset and a decrease in a expense 
D) An decrease in an asset and an increase in a liability

Question 14

Which of the following accounts are decreased by credits:

Accepted Answer

A) liabilities 
B) revenues 
C) assets 
D) contributed capital accounts 
A) liabilities 
B) revenues 
C) assets 
D) contributed capital accounts

Question 15

Net income would decrease as a result of which of the following adjustments?

Accepted Answer

A) Adjusting unearned revenue 
B) Accruing a revenue 
C) Accruing an expense 
D) Recording revenue earned but not received 
A) Adjusting unearned revenue 
B) Accruing a revenue 
C) Accruing an expense 
D) Recording revenue earned but not received

Question 16

Which of the following is not an advantage of the computer-based transaction system?

Accepted Answer

A) Transactions can be posted much more quickly than a manual system 
B) Internal controls and edit checks can prevent and detect errors 
C) A wide variety of reports can be prepared 
D) Computer can determine which events are most significant for analysis 
A) Transactions can be posted much more quickly than a manual system 
B) Internal controls and edit checks can prevent and detect errors 
C) A wide variety of reports can be prepared 
D) Computer can determine which events are most significant for analysis

Question 17

As a result of closing entries which of the following is true?

Accepted Answer

A) Cash is increased. 
B) Retained earning is increased by the amount of income earned during the year. 
C) Total assets are increased by the amount of income earned during the year. 
D) Liabilities are decreased by the amount of income earned during the year. 
A) Cash is increased. 
B) Retained earning is increased by the amount of income earned during the year. 
C) Total assets are increased by the amount of income earned during the year. 
D) Liabilities are decreased by the amount of income earned during the year.

Question 18

Kate Corporation began the year with $6,200 in supplies and purchased $12,500 in supplies during the year.At year end,$5,100 in supplies remained on hand.The required adjusting entry would be:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 19

The following is a list of the eight steps in the accounting cycle.Match the numbers 1 though 8 to the events below to indicate the sequence of the accounting cycle steps.
_____
A.Prepare and adjusted trial balance
_____
B.Prepare financial statements
_____
C.Identify, analyze, and record events in journal
_____
D.Prepare post closing trial balance
_____
E.Make closing entries in journal and post to ledger
_____
_____ F.Enter adjusting entries in journal and post to ledger
 _____G.Post entries from journal to ledger
 _____H.Prepare trial balance

Accepted Answer

A.5 B.6 C.

Question 20

Which of the following cases would require an adjusting entry to accrue revenue?

Accepted Answer

A) a client has paid for services in advance 
B) customers have been billed for services but not yet paid 
C) capital stock has been issued for cash but not yet paid for 
D) interest on a note receivable will not be received until the note is paid off next year 
A) a client has paid for services in advance 
B) customers have been billed for services but not yet paid 
C) capital stock has been issued for cash but not yet paid for 
D) interest on a note receivable will not be received until the note is paid off next year

The entry to record a purchase of supplies on account would include a:

Where would the issuance of stock for cash be reported?

Net income would decrease as a result of which of the following adjustments:

After closing entries are made which accounts not have balances?

Net income would increase as a result of which of the following adjustments:

Which of the following appears on both the income statement and the statement of stockholders' equity?

The following information was taken from Dukas Corporation's adjusted trial balance on December 31,2010 Required: (A.)Prepare the income statement. (B.)Prepare the December 31 balance sheet.

Place each of the following accounting elements in the financial statement(s)in which it would be reported: Inventory Credit sales Cash dividends Common stock Expenses

All adjusting entries involve

On September 1,2010,Olpe Corporation paid $2,400 for a 1-year insurance policy.What amount of expense should Olpe report for the year ended December 31,2010?

Accountants use the term "debit" to refer to

Computek,Inc.has one revenue account,service revenue,which is to be closed out at year end.The closing entry would be:

Only one of the following could be an adjusting entry which one is it?

Which of the following accounts are decreased by credits:

Net income would decrease as a result of which of the following adjustments?

Which of the following is not an advantage of the computer-based transaction system?

As a result of closing entries which of the following is true?

Kate Corporation began the year with $6,200 in supplies and purchased $12,500 in supplies during the year.At year end,$5,100 in supplies remained on hand.The required adjusting entry would be:

Which of the following cases would require an adjusting entry to accrue revenue?

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Exam 7: Accounting Information Systems

The entry to record a purchase of supplies on account would include a:

Where would the issuance of stock for cash be reported?

Net income would decrease as a result of which of the following adjustments:

After closing entries are made which accounts not have balances?

Net income would increase as a result of which of the following adjustments:

Which of the following appears on both the income statement and the statement of stockholders' equity?

The following information was taken from Dukas Corporation's adjusted trial balance on December 31,2010 Required: (A.)Prepare the income statement. (B.)Prepare the December 31 balance sheet.

Place each of the following accounting elements in the financial statement(s)in which it would be reported: Inventory Credit sales Cash dividends Common stock Expenses

All adjusting entries involve

On September 1,2010,Olpe Corporation paid $2,400 for a 1-year insurance policy.What amount of expense should Olpe report for the year ended December 31,2010?

Accountants use the term "debit" to refer to

Computek,Inc.has one revenue account,service revenue,which is to be closed out at year end.The closing entry would be:

Only one of the following could be an adjusting entry which one is it?

Which of the following accounts are decreased by credits:

Net income would decrease as a result of which of the following adjustments?

Which of the following is not an advantage of the computer-based transaction system?

As a result of closing entries which of the following is true?

Kate Corporation began the year with $6,200 in supplies and purchased $12,500 in supplies during the year.At year end,$5,100 in supplies remained on hand.The required adjusting entry would be:

Which of the following cases would require an adjusting entry to accrue revenue?

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters