Question 1

Source documents include all of the following except:

Accepted Answer

A) Sales tickets. 
B) Ledgers. 
C) Checks. 
D) Purchase orders. 
E) Bank statements. 
A) Sales tickets. 
B) Ledgers. 
C) Checks. 
D) Purchase orders. 
E) Bank statements.

Question 2

Crediting an expense account decreases it.

Accepted Answer

A) True 
 B)False

Question 3

On April 30,Holden Company had an Accounts Receivable balance of $18,000.During the month of May,total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

Accepted Answer

A) $ 5,000. 
B) $47,000. 
C) $52,000. 
D) $57,000. 
E) $32,000. 
A) $ 5,000. 
B) $47,000. 
C) $52,000. 
D) $57,000. 
E) $32,000.

Question 4

Identify each of the following items would likely serve as a source document by marking an X in the appropriate column.The first one is done as an example

Accepted Answer

The answer of Identify each of the following items would...

Question 5

Increases in liability accounts are recorded as debits.

Accepted Answer

A) True 
 B)False

Question 6

On February 5,Textron Stores purchased a van that cost $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

Accepted Answer

The answer of On February 5,Textron Stores purchased a van...

Question 7

A transaction that increases an asset and decreases a liability must also affect one or more other accounts.

Accepted Answer

A) True 
 B)False

Question 8

_______________ is the process of transferring journal entry information to the ledger.

Accepted Answer

The answer of _______________ is the process of transferring journal...

Question 9

The journal is known as a book of original entry.

Accepted Answer

A) True 
 B)False

Question 10

_____________ and ______________ are the starting points for the analyzing and recording process.

Accepted Answer

answers c

Question 11

Management Services,Inc.provides services to clients.On May 1,a client prepaid Management Services $60,000 for 6-months services in advance.Management Services' general journal entry to record this transaction will include a:

Accepted Answer

A) Debit to Unearned Management Fees for $60,000. 
B) Credit to Management Fees Earned for $60,000. 
C) Credit to Cash for $60,000. 
D) Credit to Unearned Management Fees for $60,000. 
E) Debit to Management Fees Earned for $60,000. 
A) Debit to Unearned Management Fees for $60,000. 
B) Credit to Management Fees Earned for $60,000. 
C) Credit to Cash for $60,000. 
D) Credit to Unearned Management Fees for $60,000. 
E) Debit to Management Fees Earned for $60,000.

Question 12

Which of the following is the formula used to calculate the debt ratio?

Accepted Answer

A) Total Equity/Total Liabilities. 
B) Total Liabilities/Total Equity. 
C) Total Liabilities/Total Assets. 
D) Total Assets/Total Liabilities. 
E) Total Equity/Total Assets. 
A) Total Equity/Total Liabilities. 
B) Total Liabilities/Total Equity. 
C) Total Liabilities/Total Assets. 
D) Total Assets/Total Liabilities. 
E) Total Equity/Total Assets.

Question 13

The record in which transactions are first recorded is the:

Accepted Answer

A) Account balance. 
B) Ledger. 
C) Journal. 
D) Trial balance. 
E) Cash account. 
A) Account balance. 
B) Ledger. 
C) Journal. 
D) Trial balance. 
E) Cash account.

Question 14

The account used to record the transfers of assets from a business to its owner is:

Accepted Answer

A) A revenue account. 
B) The owner's withdrawals account. 
C) The owner's capital account. 
D) An expense account. 
E) A liability account. 
A) A revenue account. 
B) The owner's withdrawals account. 
C) The owner's capital account. 
D) An expense account. 
E) A liability account.

Question 15

Items such as sales tickets,bank statements,checks,and purchase orders are source documents.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is correct?

Accepted Answer

A) When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense. 
B) Promises of future payment by the buyer are called accounts receivable. 
C) Increases and decreases in cash are always recorded in the owner's capital account. 
D) An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business. 
E) Accrued liabilities include accounts receivable. 
A) When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense. 
B) Promises of future payment by the buyer are called accounts receivable. 
C) Increases and decreases in cash are always recorded in the owner's capital account. 
D) An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business. 
E) Accrued liabilities include accounts receivable.

Question 17

The following is a list of accounts and identification letters A through J for Shannon Management Co.:
   Use the form below to identify the type of account and its normal balance.The first item is filled in as an example.

Accepted Answer

The answer of The following is a list of accounts...

Question 18

Revenues and expenses are two categories of ____________________ accounts.

Accepted Answer

The answer of Revenues and expenses are two categories of...

Question 19

When a company provides services for which cash will not be received until some future date,the company should record the amount charged as unearned revenue.

Accepted Answer

A) True 
 B)False

Question 20

Unearned revenues are:

Accepted Answer

A) Revenues that have been earned and received in cash. 
B) Revenues that have been earned but not yet collected in cash. 
C) Liabilities created when a customer pays in advance for products or services before the revenue is earned. 
D) Recorded as an asset in the accounting records. 
E) Increases to owners' capital. 
A) Revenues that have been earned and received in cash. 
B) Revenues that have been earned but not yet collected in cash. 
C) Liabilities created when a customer pays in advance for products or services before the revenue is earned. 
D) Recorded as an asset in the accounting records. 
E) Increases to owners' capital.

Exam 2: Analyzing and Recording Transactions

Source documents include all of the following except:

Crediting an expense account decreases it.

On April 30,Holden Company had an Accounts Receivable balance of $18,000.During the month of May,total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

Identify each of the following items would likely serve as a source document by marking an X in the appropriate column.The first one is done as an example

Increases in liability accounts are recorded as debits.

On February 5,Textron Stores purchased a van that cost $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

A transaction that increases an asset and decreases a liability must also affect one or more other accounts.

_______________ is the process of transferring journal entry information to the ledger.

The journal is known as a book of original entry.

_____________ and ______________ are the starting points for the analyzing and recording process.

Management Services,Inc.provides services to clients.On May 1,a client prepaid Management Services $60,000 for 6-months services in advance.Management Services' general journal entry to record this transaction will include a:

Which of the following is the formula used to calculate the debt ratio?

The record in which transactions are first recorded is the:

The account used to record the transfers of assets from a business to its owner is:

Items such as sales tickets,bank statements,checks,and purchase orders are source documents.

Which of the following statements is correct?

The following is a list of accounts and identification letters A through J for Shannon Management Co.: Use the form below to identify the type of account and its normal balance.The first item is filled in as an example.

Revenues and expenses are two categories of ____________________ accounts.

When a company provides services for which cash will not be received until some future date,the company should record the amount charged as unearned revenue.

Unearned revenues are:

Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

_ and __ are the starting points for the analyzing and recording process.