Question 1

Which of the following types of accounts have a normal debit balance?

Accepted Answer

A)  Assets and Expenses 
B)  Liabilities and Dividends 
C)  Revenues and Liabilities 
D)  Owners' Equity and Dividends 
A)  Assets and Expenses 
B)  Liabilities and Dividends 
C)  Revenues and Liabilities 
D)  Owners' Equity and Dividends

Question 2

Northwest Company received and immediately paid a $4,000 utility bill from Green River Gas and Electric Company. The entry by Green River Gas and Electric Company to record receipt of the payment would include

Accepted Answer

A)  A credit to Accounts Payable 
B)  A debit to Cash 
C)  A credit to Utilities Expense 
D)  A credit to Accounts Payable and a debit to Cash 
A)  A credit to Accounts Payable 
B)  A debit to Cash 
C)  A credit to Utilities Expense 
D)  A credit to Accounts Payable and a debit to Cash

Question 3

The supplies expense account

Accepted Answer

A)  Normally has a credit balance 
B)  Is increased with a credit entry 
C)  Is increased with a debit entry 
D)  Is decreased with a debit entry 
A)  Normally has a credit balance 
B)  Is increased with a credit entry 
C)  Is increased with a debit entry 
D)  Is decreased with a debit entry

Question 4

When cash dividends are paid,

Accepted Answer

A)  Assets are decreased and liabilities are decreased 
B)  Assets are increased and owners' equity is increased 
C)  Assets are decreased and owners' equity is increased 
D)  Assets are decreased and owners' equity is decreased 
A)  Assets are decreased and liabilities are decreased 
B)  Assets are increased and owners' equity is increased 
C)  Assets are decreased and owners' equity is increased 
D)  Assets are decreased and owners' equity is decreased

Question 5

Which of the following is true of the cash account?

Accepted Answer

A)  It normally has a credit balance. 
B)  It is increased with credit entries. 
C)  It is an owners' equity account. 
D)  It is increased with debit entries. 
A)  It normally has a credit balance. 
B)  It is increased with credit entries. 
C)  It is an owners' equity account. 
D)  It is increased with debit entries.

Question 6

An entry to the left side of an account is always called a(n)

Accepted Answer

A)  Debit 
B)  Credit 
C)  Increase 
D)  Decrease 
A)  Debit 
B)  Credit 
C)  Increase 
D)  Decrease

Question 7

Which of the following accounts would normally NOT have a credit balance?

Accepted Answer

A)  Accounts Payable 
B)  Cost of Goods Sold 
C)  Sales Revenue 
D)  Retained Earnings 
A)  Accounts Payable 
B)  Cost of Goods Sold 
C)  Sales Revenue 
D)  Retained Earnings

Question 8

The purchase of supplies on account

Accepted Answer

A)  Increases assets and decreases liabilities 
B)  Decreases assets and increases liabilities 
C)  Increases assets and increases liabilities 
D)  Decreases assets and decreases liabilities 
A)  Increases assets and decreases liabilities 
B)  Decreases assets and increases liabilities 
C)  Increases assets and increases liabilities 
D)  Decreases assets and decreases liabilities

Question 9

A credit sale of merchandise for a price that exceeds the cost of the merchandise

Accepted Answer

A)  Increases net assets and increases liabilities 
B)  Decreases net assets and increases revenues 
C)  Increases liabilities and increases revenues 
D)  Increases net assets and increases revenues 
A)  Increases net assets and increases liabilities 
B)  Decreases net assets and increases revenues 
C)  Increases liabilities and increases revenues 
D)  Increases net assets and increases revenues

Question 10

The capital stock account is

Accepted Answer

A)  Increased with a debit 
B)  Increased with a credit 
C)  Decreased with a credit 
D)  None of these are correct 
A)  Increased with a debit 
B)  Increased with a credit 
C)  Decreased with a credit 
D)  None of these are correct

Question 11

As of June 1, Mega Corporation had total assets of $79,500. During June, the company had the following transactions:   After these transactions have been recorded, Mega would have total assets of

Accepted Answer

A)  $100,800 
B)  $100,050 
C)  $91,200 
D)  $104,250 
A)  $100,800 
B)  $100,050 
C)  $91,200 
D)  $104,250

Question 12

During January 2013, Westburg Corporation paid off $9,000 of wages payable that were incurred in the prior year. This transaction would be posted as

Accepted Answer

The answer of During January 2013, Westburg Corporation paid off...

Question 13

Perez Company received and immediately paid a $500 utility bill. Payment of the utility bill would be posted to the ledger accounts as

Accepted Answer

The answer of Perez Company received and immediately paid a...

Question 14

Which of the following steps is normally first in the accounting cycle?

Accepted Answer

A)  Transactions are journalized. 
B)  Journal accounts are posted. 
C)  A trial balance is prepared. 
D)  Business documents are analyzed. 
A)  Transactions are journalized. 
B)  Journal accounts are posted. 
C)  A trial balance is prepared. 
D)  Business documents are analyzed.

Question 15

Which of the following is NOT true about a trial balance?

Accepted Answer

A)  A trial balance is strictly an internal document. 
B)  A trial balance is used to summarize all of the account balances. 
C)  A trial balance shows that the accounting equation is in balance. 
D)  A trial balance and a balance sheet are essentially the same document. 
A)  A trial balance is strictly an internal document. 
B)  A trial balance is used to summarize all of the account balances. 
C)  A trial balance shows that the accounting equation is in balance. 
D)  A trial balance and a balance sheet are essentially the same document.

Question 16

A chronological listing of all economic transactions is maintained in a company's

Accepted Answer

A)  Work sheets 
B)  Ledgers 
C)  Journals 
D)  Balance sheets 
A)  Work sheets 
B)  Ledgers 
C)  Journals 
D)  Balance sheets

Question 17

When Jim was preparing the trial balance, he accidentally recorded a $300 debit as a credit instead. By how much will this cause the trial balance columns to differ?

Accepted Answer

A)  $0 
B)  $150 
C)  $300 
D)  $600 
A)  $0 
B)  $150 
C)  $300 
D)  $600

Question 18

During July 2013, Gutierrez Corporation sold $9,000 of merchandise on account. The revenue portion of this transaction would be posted as

Accepted Answer

The answer of During July 2013, Gutierrez Corporation sold $9,000...

Question 19

Which of the following would usually NOT happen in a single transaction?

Accepted Answer

A)  Increase assets, decrease liabilities 
B)  Increase assets, increase liabilities 
C)  Increase liabilities, decrease owners' equity 
D)  Decrease assets, decrease owners' equity 
A)  Increase assets, decrease liabilities 
B)  Increase assets, increase liabilities 
C)  Increase liabilities, decrease owners' equity 
D)  Decrease assets, decrease owners' equity

Question 20

On June 30, the balances in the General Ledger accounts of Pancho Company resulted in the following totals:

Accepted Answer

The answer of On June 30, the balances in the...

Exam 3: The Accounting Cycle: The Mechanics of Accounting

Which of the following types of accounts have a normal debit balance?

Northwest Company received and immediately paid a $4,000 utility bill from Green River Gas and Electric Company. The entry by Green River Gas and Electric Company to record receipt of the payment would include

The supplies expense account

When cash dividends are paid,

Which of the following is true of the cash account?

An entry to the left side of an account is always called a(n)

Which of the following accounts would normally NOT have a credit balance?

The purchase of supplies on account

A credit sale of merchandise for a price that exceeds the cost of the merchandise

The capital stock account is

As of June 1, Mega Corporation had total assets of $79,500. During June, the company had the following transactions: After these transactions have been recorded, Mega would have total assets of

During January 2013, Westburg Corporation paid off $9,000 of wages payable that were incurred in the prior year. This transaction would be posted as

Perez Company received and immediately paid a $500 utility bill. Payment of the utility bill would be posted to the ledger accounts as

Which of the following steps is normally first in the accounting cycle?

Which of the following is NOT true about a trial balance?

A chronological listing of all economic transactions is maintained in a company's

When Jim was preparing the trial balance, he accidentally recorded a $300 debit as a credit instead. By how much will this cause the trial balance columns to differ?

During July 2013, Gutierrez Corporation sold $9,000 of merchandise on account. The revenue portion of this transaction would be posted as

Which of the following would usually NOT happen in a single transaction?

On June 30, the balances in the General Ledger accounts of Pancho Company resulted in the following totals:

Accounting Information: Users and Uses

Financial Statements: An Overview

Completing the Accounting Cycle

Internal Controls: Ensuring the Integrity of Financial Information

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

New Measures of Performance

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