Question 1

Expense and revenue accounts can be considered to be subcategories of

Accepted Answer

A)  An asset account 
B)  A liability account 
C)  An owners' equity account 
D)  None of these are correct 
A)  An asset account 
B)  A liability account 
C)  An owners' equity account 
D)  None of these are correct

Question 2

The basic accounting equation is

Accepted Answer

A)  Assets = Liabilities + Owners' Equity 
B)  Assets + Owners' Equity = Liabilities 
C)  Assets + Liabilities = Owners' Equity 
D)  Liabilities - Owner's Equity = Assets 
A)  Assets = Liabilities + Owners' Equity 
B)  Assets + Owners' Equity = Liabilities 
C)  Assets + Liabilities = Owners' Equity 
D)  Liabilities - Owner's Equity = Assets

Question 3

Which of the following is the correct format for journalizing transactions?

Accepted Answer

A)  
$\begin{array} { l r } 
\text { Debit } & \mathrm { xxx } \
\text { Credit } & \mathrm { xxx }
\end{array}$ 
B) 
Debit $\quad \mathrm { xxx }$
Credit $\quad \mathrm { xxx }$ 
C) 
 Credit $\quad \mathrm { xxx }$
Debit $\quad \mathrm { xxx }$ 
D)  
$\begin{array} { l } 
\text { Debit } \quad \mathrm { xxx } \
\text { Credit } \quad \mathrm { xxx } \
\end{array}$ 
A)  
$\begin{array} { l r } 
\text { Debit } & \mathrm { xxx } \
\text { Credit } & \mathrm { xxx }
\end{array}$ 
B) 
Debit $\quad \mathrm { xxx }$
Credit $\quad \mathrm { xxx }$ 
C) 
 Credit $\quad \mathrm { xxx }$
Debit $\quad \mathrm { xxx }$ 
D)  
$\begin{array} { l } 
\text { Debit } \quad \mathrm { xxx } \
\text { Credit } \quad \mathrm { xxx } \
\end{array}$

Question 4

Miles Motor Supplies had the following transactions during December:   As a result of these transactions, at year-end, liabilities and owners' equity would show a total

Accepted Answer

A)  Decrease by $4,575 
B)  Decrease by $4,200 
C)  Decrease by $4,800 
D)  Increase by $13,425 
A)  Decrease by $4,575 
B)  Decrease by $4,200 
C)  Decrease by $4,800 
D)  Increase by $13,425

Question 5

Mila Company paid $900 for merchandise previously purchased on credit. The payment would be posted to the ledger accounts as

Accepted Answer

The answer of Mila Company paid $900 for merchandise previously...

Question 6

On November 15, Roach Company issued 300 new shares of stock. Shareholders paid $25 for each share of stock. The correct entry to record the issue of stock on November 15 is

Accepted Answer

A)  
Cash $\quad 7,500$
Capital Stock$\quad 7,500$ 
B)  
$\begin{array} { c r } 
\text { Capital Stock } & 7,500 \
\text { Cash } & 7,500
\end{array}$ 
C)  
Cash $ \quad 300 $
Capital Stock$ \quad 300 $ 
D)  
$\begin{array} { c c } 
\text { Capital Stock } & 300 \
\text { Cash } & 300
\end{array}$ 
A)  
Cash $\quad 7,500$
Capital Stock$\quad 7,500$ 
B)  
$\begin{array} { c r } 
\text { Capital Stock } & 7,500 \
\text { Cash } & 7,500
\end{array}$ 
C)  
Cash $ \quad 300 $
Capital Stock$ \quad 300 $ 
D)  
$\begin{array} { c c } 
\text { Capital Stock } & 300 \
\text { Cash } & 300
\end{array}$

Question 7

The basic accounting equation can be broken into accounts that represent a firm's assets, liabilities, and owners' equity. Desler Company had the following transactions during a recent week:

Record these transactions in the appropriate columns shown below. Also, include account balances.

Accepted Answer

Record these transactions in t

Question 8

Marbletop, Inc. had the following transactions during a recent month:
  
Use the T-accounts below to record these transactions. Use the alphabetical character representing each transaction to cross-reference your entries.

Accepted Answer

Use the T-accounts below to re

Question 9

If a company purchased equipment by borrowing money, the accounting equation would show a(n)

Accepted Answer

A)  Increase in assets and decrease in assets 
B)  Decrease in liabilities and increase in assets 
C)  Increase in assets and increase in liabilities 
D)  Decrease in liabilities and decrease in assets 
A)  Increase in assets and decrease in assets 
B)  Decrease in liabilities and increase in assets 
C)  Increase in assets and increase in liabilities 
D)  Decrease in liabilities and decrease in assets

Question 10

Using the format provided, for each account identify (a) whether the account would be reported on a balance sheet or on an income statement; (b) whether it is an asset, a liability, owners' equity, a revenue, or an expense; and (c) whether the account has a debit or a credit balance. An example is provided.

Accepted Answer

The answer of Using the format provided, for each account...

Question 11

The purchase of supplies with cash would show a(n)

Accepted Answer

A)  Increase in assets and decrease in assets 
B)  Decrease in liabilities and increase in assets 
C)  Increase in assets and increase in liabilities 
D)  Decrease in liabilities and decrease in assets 
A)  Increase in assets and decrease in assets 
B)  Decrease in liabilities and increase in assets 
C)  Increase in assets and increase in liabilities 
D)  Decrease in liabilities and decrease in assets

Question 12

During the period, Williams Company completed the following transactions:   As a result of these transactions, Williams Company's total assets would

Accepted Answer

A)  Increase by $19,800 
B)  Increase by $45,600 
C)  Increase by $16,800 
D)  Increase by $14,400 
A)  Increase by $19,800 
B)  Increase by $45,600 
C)  Increase by $16,800 
D)  Increase by $14,400

Question 13

On December 31, Scott Corporation paid shareholders a $13,000 cash dividend. The entry by Scott Corporation to record the transaction would include

Accepted Answer

A)  A debit to Cash 
B)  A credit to Dividends 
C)  A debit to Dividends 
D)  A debit to Capital Stock 
A)  A debit to Cash 
B)  A credit to Dividends 
C)  A debit to Dividends 
D)  A debit to Capital Stock

Question 14

Business documents are used as records of transactions and as the basis for accounting entries. Which of the following is NOT a business document?

Accepted Answer

A)  Sales invoice 
B)  Check stubs 
C)  Receipts 
D)  General ledger 
A)  Sales invoice 
B)  Check stubs 
C)  Receipts 
D)  General ledger

Question 15

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

Accepted Answer

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

Question 16

During July 2013, Hasan Corporation incurred but did NOT pay a $500 utility expense. This transaction would be posted as

Accepted Answer

The answer of During July 2013, Hasan Corporation incurred but...

Question 17

Which of the following is NOT a reason that business documents are used in a business?

Accepted Answer

A)  To confirm that a transaction has occurred 
B)  To facilitate the analysis of business transactions 
C)  To forecast sales 
D)  To establish the amounts to be recorded 
A)  To confirm that a transaction has occurred 
B)  To facilitate the analysis of business transactions 
C)  To forecast sales 
D)  To establish the amounts to be recorded

Question 18

Usually, when accounts receivable are collected, an asset is debited and

Accepted Answer

A)  Another asset is debited 
B)  Another asset is credited 
C)  A liability is debited 
D)  A liability is credited 
A)  Another asset is debited 
B)  Another asset is credited 
C)  A liability is debited 
D)  A liability is credited

Question 19

Which of the following is NOT a step in the accounting cycle?

Accepted Answer

A)  Recording the effects of transactions 
B)  Summarizing the effects of transactions 
C)  Forecasting sales 
D)  Preparing reports 
A)  Recording the effects of transactions 
B)  Summarizing the effects of transactions 
C)  Forecasting sales 
D)  Preparing reports

Question 20

Marbletop, Inc. had the following transactions during a recent month:
  
Prepare the appropriate journal entries to record these transactions (omit explanations).

Accepted Answer

Prepare the appropri

Exam 3: The Accounting Cycle: The Mechanics of Accounting

Expense and revenue accounts can be considered to be subcategories of

The basic accounting equation is

Which of the following is the correct format for journalizing transactions?

Miles Motor Supplies had the following transactions during December: As a result of these transactions, at year-end, liabilities and owners' equity would show a total

Mila Company paid $900 for merchandise previously purchased on credit. The payment would be posted to the ledger accounts as

On November 15, Roach Company issued 300 new shares of stock. Shareholders paid $25 for each share of stock. The correct entry to record the issue of stock on November 15 is

The basic accounting equation can be broken into accounts that represent a firm's assets, liabilities, and owners' equity. Desler Company had the following transactions during a recent week: Record these transactions in the appropriate columns shown below. Also, include account balances.

Marbletop, Inc. had the following transactions during a recent month: Use the T-accounts below to record these transactions. Use the alphabetical character representing each transaction to cross-reference your entries.

If a company purchased equipment by borrowing money, the accounting equation would show a(n)

The purchase of supplies with cash would show a(n)

During the period, Williams Company completed the following transactions: As a result of these transactions, Williams Company's total assets would

On December 31, Scott Corporation paid shareholders a $13,000 cash dividend. The entry by Scott Corporation to record the transaction would include

Business documents are used as records of transactions and as the basis for accounting entries. Which of the following is NOT a business document?

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

During July 2013, Hasan Corporation incurred but did NOT pay a $500 utility expense. This transaction would be posted as

Which of the following is NOT a reason that business documents are used in a business?

Usually, when accounts receivable are collected, an asset is debited and

Which of the following is NOT a step in the accounting cycle?

Marbletop, Inc. had the following transactions during a recent month: Prepare the appropriate journal entries to record these transactions (omit explanations).

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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