Question 1

Cost of Goods Sold is what type of account?

Accepted Answer

A)  Expense 
B)  Asset 
C)  Liability 
D)  Revenue 
A)  Expense 
B)  Asset 
C)  Liability 
D)  Revenue

Question 2

Which of the following is NOT usually part of an entry in the General Journal?

Accepted Answer

A)  Account numbers for the debit and credit entry 
B)  Account titles for the debit and credit entry 
C)  The transaction date 
D)  An explanation of the transaction 
A)  Account numbers for the debit and credit entry 
B)  Account titles for the debit and credit entry 
C)  The transaction date 
D)  An explanation of the transaction

Question 3

On May 16, Bennion Company, sold $50,000 of inventory to Bonaccorsi, Inc. for $10,000 cash and $60,000 on credit. On June 10, Bonaccorsi, Inc. paid Bennion Company cash for the $60,000 credit sale. The correct entry by Bennion Company to record the payment on June 10 is

Accepted Answer

A)  
Cash $\quad 60,000$
Accounts Receivable$\quad 60,000$ 
B)  
Cash $\quad 60,000$
Sales Revenue $\quad 60,000$ 
C)  
Cost of Goods Sold $\quad 60,000$
Sales Revenue $\quad 60,000$ 
D)  
$\begin{array} { c r } 
\text { Accounts Receivable } & 60,000 \
\text { Cash } & 60,000
\end{array}$ 
A)  
Cash $\quad 60,000$
Accounts Receivable$\quad 60,000$ 
B)  
Cash $\quad 60,000$
Sales Revenue $\quad 60,000$ 
C)  
Cost of Goods Sold $\quad 60,000$
Sales Revenue $\quad 60,000$ 
D)  
$\begin{array} { c r } 
\text { Accounts Receivable } & 60,000 \
\text { Cash } & 60,000
\end{array}$

Question 4

When accounts receivable are collected,

Accepted Answer

A)  Total assets are increased 
B)  Total assets are decreased 
C)  Total assets remain constant 
D)  Owners' equity increases 
A)  Total assets are increased 
B)  Total assets are decreased 
C)  Total assets remain constant 
D)  Owners' equity increases

Question 5

On May 16, Bennion Company, sold $50,000 of inventory to Bonaccorsi, Inc. for $10,000 cash and $60,000 on credit. On June 10, Bonaccorsi, Inc. paid Bennion Company cash for the $60,000 credit sale. The entry by Bennion Company to record the transaction on May 16 would include

Accepted Answer

A)  A credit to Cash 
B)  A debit to Inventory 
C)  A credit to Sales Revenue 
D)  A credit to Cost of Goods Sold 
A)  A credit to Cash 
B)  A debit to Inventory 
C)  A credit to Sales Revenue 
D)  A credit to Cost of Goods Sold

Question 6

On January 25, Blayne Corporation bought merchandise from a supplier for $3,600 on account. On February 20, Blayne paid the $3,600 owed to the supplier. The correct entry to record the payment to the supplier on February 20is

Accepted Answer

A)  
$\begin{array}{cc}
\text { Accounts Payable } & 3,600 \
\text { Inventory } & 3,600
\end{array}$ 
B) 
Cash $\quad 3,600$
Accounts Payable $\quad 3,600$ 
C)  
$\begin{array} { c r } 
\text { Accounts Payable } & 3,600 \
\text { Cash } & 3,600
\end{array}$ 
D)  
$\begin{array}{rr}
\text { Cost of Goods Sold } & 3,600 \
\text { Accounts Payable } & 3,600
\end{array}$ 
A)  
$\begin{array}{cc}
\text { Accounts Payable } & 3,600 \
\text { Inventory } & 3,600
\end{array}$ 
B) 
Cash $\quad 3,600$
Accounts Payable $\quad 3,600$ 
C)  
$\begin{array} { c r } 
\text { Accounts Payable } & 3,600 \
\text { Cash } & 3,600
\end{array}$ 
D)  
$\begin{array}{rr}
\text { Cost of Goods Sold } & 3,600 \
\text { Accounts Payable } & 3,600
\end{array}$

Question 7

Derby Inc. sold merchandise to a customer for $16,000 cash. The sale would be posted to the ledger accounts as

Accepted Answer

The answer of Derby Inc. sold merchandise to a customer...

Question 8

The dividends account

Accepted Answer

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

Question 9

Solo Company borrowed $4,000 from National City Bank on June 1. On August 31, Solo Company paid off the loan plus $100 interest. The correct entry to record the borrowing transaction on June 1 is

Accepted Answer

A)  
$\begin{array} { c c c } 
\text { Payable } & 4,000 & \
\text { Cash } & 4,000
\end{array}$ 
B)  
$\begin{array}{cc}
\text { Notes Payable } & 4,100 \
\text { Cash } & 4,100
\end{array}$ 
C)  
$\begin{array}{ll}
\text { Cash } & 4,000 \
\quad \text { Notes Payable } &4,000
\end{array}$ 
D) 
Cash $\quad 4,100$
Notes Payable$\quad 4,100$ 
A)  
$\begin{array} { c c c } 
\text { Payable } & 4,000 & \
\text { Cash } & 4,000
\end{array}$ 
B)  
$\begin{array}{cc}
\text { Notes Payable } & 4,100 \
\text { Cash } & 4,100
\end{array}$ 
C)  
$\begin{array}{ll}
\text { Cash } & 4,000 \
\quad \text { Notes Payable } &4,000
\end{array}$ 
D) 
Cash $\quad 4,100$
Notes Payable$\quad 4,100$

Question 10

List the four steps, in order, of the sequence of the accounting cycle. Be sure to include any sub-steps.

Accepted Answer

The answer of List the four steps, in order, of...

Question 11

Gorbac Corporation issued stock to John Gorbac for $7,000 cash. This transaction would be posted to the ledger accounts of Gorbac Corporation as

Accepted Answer

The answer of Gorbac Corporation issued stock to John Gorbac...

Question 12

Which of the following is NOT an advantage of a computerized accounting system over a manual accounting system?

Accepted Answer

A)  A computerized system is faster. 
B)  A computerized system is more accurate once the data is correctly entered. 
C)  Data can be managed more easily in a computerized system. 
D)  A computerized system can analyze the information for decision making. 
A)  A computerized system is faster. 
B)  A computerized system is more accurate once the data is correctly entered. 
C)  Data can be managed more easily in a computerized system. 
D)  A computerized system can analyze the information for decision making.

Question 13

If a company issues stock for cash, the accounting equation will show a(n)

Accepted Answer

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

Question 14

On July 24, Barkdull Inc. purchased $4,000 of inventory on account. On August 3, Barkdull, sold $2,000 of inventory for $1,000 cash and $2,000 on credit. The correct entry by Barkdull Inc. to record the sale of inventory or August 3 is

Accepted Answer

A)  Cash 3,000 
Sales Revenue 3,000
Cost of Goods Sold 2,000
Inventory 2,000 
B)  Cash 1,000 
Accounts Receivable 2,000
Sales Revenue 3,000
Cost of Goods Sold 2,000
Inventory 2,000 
C)  Cost of Goods Sold 3,000 
Sales Revenue 3,000
Accounts Receivable 2,000
Inventory 2,000 
D)  Cash 1,000 
Accounts Receivable 2,000
Inventory 3,000
Cost of Goods Sold 2,000
Sales Revenue 2,000 
A)  Cash 3,000 
Sales Revenue 3,000
Cost of Goods Sold 2,000
Inventory 2,000 
B)  Cash 1,000 
Accounts Receivable 2,000
Sales Revenue 3,000
Cost of Goods Sold 2,000
Inventory 2,000 
C)  Cost of Goods Sold 3,000 
Sales Revenue 3,000
Accounts Receivable 2,000
Inventory 2,000 
D)  Cash 1,000 
Accounts Receivable 2,000
Inventory 3,000
Cost of Goods Sold 2,000
Sales Revenue 2,000

Question 15

Christopher Company purchased $20,000 of equipment for cash. The correct entry to record the purchase of equipment is

Accepted Answer

A)  
$\begin{array} { l r l } 
\text { Cash } & 20,000 \
\text { Equipment } & 20,000
\end{array}$ 
B)  
Equipment $\quad 20,000$
Accounts Payable $\quad 20,000$ 
C)  
$\begin{array} { c r } 
\text { Equipment } & 20,000 \
\text { Cash } & 20,000
\end{array}$ 
D)  
$\begin{array}{cc}
\text { Accounts Payable } & 20,000 \
\text { Equipment } & 20,000
\end{array}$ 
A)  
$\begin{array} { l r l } 
\text { Cash } & 20,000 \
\text { Equipment } & 20,000
\end{array}$ 
B)  
Equipment $\quad 20,000$
Accounts Payable $\quad 20,000$ 
C)  
$\begin{array} { c r } 
\text { Equipment } & 20,000 \
\text { Cash } & 20,000
\end{array}$ 
D)  
$\begin{array}{cc}
\text { Accounts Payable } & 20,000 \
\text { Equipment } & 20,000
\end{array}$

Question 16

Borrowing money from a bank

Accepted Answer

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

Question 17

Telecon, Inc., experienced the following transactions during May 2013. Prepare the appropriate journal entries to record these transactions (omit explanations).

Accepted Answer

The answer of Telecon, Inc., experienced the following transactions during...

Question 18

Which of the following types of entries would NOT usually be made?

Accepted Answer

A)  A credit to an asset account, a debit to a liability account 
B)  A debit to an asset account, a credit to a liability account 
C)  A debit to an asset account, a credit to an owners' equity account 
D)  A debit to an asset account, a debit to a liability account 
A)  A credit to an asset account, a debit to a liability account 
B)  A debit to an asset account, a credit to a liability account 
C)  A debit to an asset account, a credit to an owners' equity account 
D)  A debit to an asset account, a debit to a liability account

Question 19

Based on the following account balances at December 31, 2013, prepare a trial balance for Uniflex Company.

Accepted Answer

The answer of Based on the following account balances at...

Question 20

Which of the following types of accounts are affected when a company pays cash dividends to its shareholders?

Accepted Answer

A)  Owners' equity only 
B)  Both assets and liabilities 
C)  Both liabilities and owners' equity 
D)  Both assets and owners' equity 
A)  Owners' equity only 
B)  Both assets and liabilities 
C)  Both liabilities and owners' equity 
D)  Both assets and owners' equity

Exam 3: The Accounting Cycle: The Mechanics of Accounting

Cost of Goods Sold is what type of account?

Which of the following is NOT usually part of an entry in the General Journal?

On May 16, Bennion Company, sold $50,000 of inventory to Bonaccorsi, Inc. for $10,000 cash and $60,000 on credit. On June 10, Bonaccorsi, Inc. paid Bennion Company cash for the $60,000 credit sale. The correct entry by Bennion Company to record the payment on June 10 is

When accounts receivable are collected,

On May 16, Bennion Company, sold $50,000 of inventory to Bonaccorsi, Inc. for $10,000 cash and $60,000 on credit. On June 10, Bonaccorsi, Inc. paid Bennion Company cash for the $60,000 credit sale. The entry by Bennion Company to record the transaction on May 16 would include

On January 25, Blayne Corporation bought merchandise from a supplier for $3,600 on account. On February 20, Blayne paid the $3,600 owed to the supplier. The correct entry to record the payment to the supplier on February 20is

Derby Inc. sold merchandise to a customer for $16,000 cash. The sale would be posted to the ledger accounts as

The dividends account

Solo Company borrowed $4,000 from National City Bank on June 1. On August 31, Solo Company paid off the loan plus $100 interest. The correct entry to record the borrowing transaction on June 1 is

List the four steps, in order, of the sequence of the accounting cycle. Be sure to include any sub-steps.

Gorbac Corporation issued stock to John Gorbac for $7,000 cash. This transaction would be posted to the ledger accounts of Gorbac Corporation as

Which of the following is NOT an advantage of a computerized accounting system over a manual accounting system?

If a company issues stock for cash, the accounting equation will show a(n)

On July 24, Barkdull Inc. purchased $4,000 of inventory on account. On August 3, Barkdull, sold $2,000 of inventory for $1,000 cash and $2,000 on credit. The correct entry by Barkdull Inc. to record the sale of inventory or August 3 is

Christopher Company purchased $20,000 of equipment for cash. The correct entry to record the purchase of equipment is

Borrowing money from a bank

Telecon, Inc., experienced the following transactions during May 2013. Prepare the appropriate journal entries to record these transactions (omit explanations).

Which of the following types of entries would NOT usually be made?

Based on the following account balances at December 31, 2013, prepare a trial balance for Uniflex Company.

Which of the following types of accounts are affected when a company pays cash dividends to its shareholders?

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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