Question 1

A company had total assets of $350,000 and total liabilities of $101,500 and total equity of $248,500.Calculate its debt ratio.

Accepted Answer

Debt Ratio = Total L

Question 2

A ____________ gives a complete record of each transaction in one place,and shows debits and credits for each transaction.

Accepted Answer

The answer of A ____________ gives a complete record of...

Question 3

Asset accounts normally have credit balances and revenue accounts normally have debit balances.

Accepted Answer

A) True 
 B)False

Question 4

Hal Smith opened Smith's Repairs on March 1 of the current year.During March,the following transactions occurred and were recorded in the company's books:
1)Smith invested $25,000 cash in the business.
2)Smith contributed $100,000 of equipment to the business.
3)The company paid $2,000 cash to rent office space for the month.
4)The company received $16,000 cash for repair services provided during March.
5)The company paid $6,200 for salaries for the month.
6)The company provided $3,000 of services to customers on account.
7)The company paid cash of $500 for monthly utilities.
8)The company received $3,100 cash in advance of providing repair services to a customer.
9)Smith withdrew $5,000 for his personal use from the company.
Based on this information,net income for March would be:

Accepted Answer

A) $10,300. 
B) $13,400 
C) $5,300 
D) $8,400 
E) $13,500. 
A) $10,300. 
B) $13,400 
C) $5,300 
D) $8,400 
E) $13,500.

Question 5

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Accepted Answer

The answer of For each of the following (1)identify the...

Question 6

If a company purchases land paying cash,the journal entry to record this transaction will include a debit to Cash.

Accepted Answer

A) True 
 B)False

Question 7

All of the following are liability accounts except:

Accepted Answer

A) Accounts Payable. 
B) Unearned Ticket Revenue. 
C) Taxes Payable. 
D) Commissions Earned. 
E) Notes Payable. 
A) Accounts Payable. 
B) Unearned Ticket Revenue. 
C) Taxes Payable. 
D) Commissions Earned. 
E) Notes Payable.

Question 8

A $15 credit to Sales was posted as a $150 credit.By what amount is Sales in error?

Accepted Answer

A) $150 understated. 
B) $135 overstated. 
C) $150 overstated. 
D) $15 understated. 
E) $135 understated. 
A) $150 understated. 
B) $135 overstated. 
C) $150 overstated. 
D) $15 understated. 
E) $135 understated.

Question 9

Maria Sanchez began business as Sanchez Law Firm on November 1.Record the following November transactions by making entries directly to the T-accounts provided.Then,prepare a trial balance,as of November 30.
a)Sanchez invested $15,000 cash and a law library valued at $6,000.
b)Purchased $7,500 of office equipment from Johnson Bros.on credit.
c)Completed legal work for a client and received $1,500 cash in full payment.
d)Paid Johnson Bros.$3,500 cash in partial settlement of the amount owed.
e)Completed $4,000 of legal work for a client on credit.
f)Sanchez withdrew $2,000 cash for personal use.
g)Received $2,500 cash as partial payment for the legal work completed for the client in (e).
h)Paid $2,500 cash for the legal secretary's salary.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& Cash ………………………………………….....……$ 11,000
A

Question 10

An asset created by prepayment of an expense is:

Accepted Answer

A) Recorded as a debit to an unearned revenue account. 
B) Recorded as a debit to a prepaid expense account. 
C) Recorded as a credit to an unearned revenue account. 
D) Recorded as a credit to a prepaid expense account. 
E) Not recorded in the accounting records until the earnings process is complete. 
A) Recorded as a debit to an unearned revenue account. 
B) Recorded as a debit to a prepaid expense account. 
C) Recorded as a credit to an unearned revenue account. 
D) Recorded as a credit to a prepaid expense account. 
E) Not recorded in the accounting records until the earnings process is complete.

Question 11

The following transactions occurred during July:
1)Received $900 cash for services provided to a customer during July.
2)Received $2,200 cash investment from Barbara Hanson,the owner of the business.
3)Received $750 from a customer in partial payment of his account receivable which arose from sales in June.
4)Provided services to a customer on credit,$375.
5)Borrowed $6,000 from the bank by signing a promissory note.
6)Received $1,250 cash from a customer for services to be rendered next year.
What was the amount of revenue for July?

Accepted Answer

A) $ 900. 
B) $ 1,275. 
C) $ 2,525. 
D) $ 3,275. 
E) $11,100. 
A) $ 900. 
B) $ 1,275. 
C) $ 2,525. 
D) $ 3,275. 
E) $11,100.

Question 12

Dolly Barton began Barton Office Services in October and during that month completed these transactions:
a.Invested $10,000 cash,and $15,000 of computer equipment.
b.Paid $500 cash for an insurance premium covering the next 12 months.
c.Completed a word processing assignment for a customer and collected $1,000 cash.
d.Paid $200 cash for office supplies.
e.Paid $2,000 for October's rent.
Prepare journal entries to record the above transactions.Explanations are unnecessary.

Accepted Answer

The answer of Dolly Barton began Barton Office Services in...

Question 13

Indicate whether a debit or credit entry would be made to record the following changes in each account.
a.To decrease Cash
b.To increase Owner,Capital
c.To decrease Accounts Payable.
d.To increase Salaries Expense.
e.To decrease Supplies.
f.To increase Revenue.
g.To decrease Accounts Receivable.
h.To increase Owner,Withdrawals.

Accepted Answer

a.Credit,b.Credit,c.

Question 14

Preparation of a trial balance is the first step in the analyzing and recording process.

Accepted Answer

A) True 
 B)False

Question 15

The journal is known as the book of final entry because financial statements are prepared from it.

Accepted Answer

A) True 
 B)False

Question 16

A formal promise to pay (in the form of a promissory note)a future amount is a(n):

Accepted Answer

A) Unearned revenue. 
B) Prepaid expense. 
C) Credit account. 
D) Note payable. 
E) Account receivable. 
A) Unearned revenue. 
B) Prepaid expense. 
C) Credit account. 
D) Note payable. 
E) Account receivable.

Question 17

The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

Accepted Answer

A) The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700. 
B) The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700. 
C) The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400. 
D) The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400. 
E) The total of the Debit column of the trial balance will equal the total of the Credit column. 
A) The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700. 
B) The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700. 
C) The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400. 
D) The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400. 
E) The total of the Debit column of the trial balance will equal the total of the Credit column.

Question 18

A debit:

Accepted Answer

A) Always increases an account. 
B) Is the right-hand side of a T-account. 
C) Always decreases an account. 
D) Is the left-hand side of a T-account. 
E) Is not need to record a transaction. 
A) Always increases an account. 
B) Is the right-hand side of a T-account. 
C) Always decreases an account. 
D) Is the left-hand side of a T-account. 
E) Is not need to record a transaction.

Question 19

Andrea Conaway opened Wonderland Photography on January 1 of the current year.During January,the following transactions occurred and were recorded in the company's books:
1)Conaway invested $13,500 cash in the business.
2)Conaway contributed $20,000 of photography equipment to the business.
3)The company paid $2,100 cash for an insurance policy covering the next 24 months.
4)The company received $5,700 cash for services provided during January.
5)The company purchased $6,200 of office equipment on credit.
6)The company provided $2,750 of services to customers on account.
7)The company paid cash of $1,500 for monthly rent.
8)The company paid $3,100 on the office equipment purchased in transaction #5 above.
9)Paid $275 cash for January utilities.
Based on this information,the balance in the cash account at the end of January would be:

Accepted Answer

A) $41,450. 
B) $12,225 
C) $18,700. 
D) $15,250. 
E) $13,500. 
A) $41,450. 
B) $12,225 
C) $18,700. 
D) $15,250. 
E) $13,500.

Question 20

The trial balance can serve as a replacement for the balance sheet,since debits must equal with credits.

Accepted Answer

A) True 
 B)False

A company had total assets of $350,000 and total liabilities of $101,500 and total equity of $248,500.Calculate its debt ratio.

A ____________ gives a complete record of each transaction in one place,and shows debits and credits for each transaction.

Asset accounts normally have credit balances and revenue accounts normally have debit balances.

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

If a company purchases land paying cash,the journal entry to record this transaction will include a debit to Cash.

All of the following are liability accounts except:

A $15 credit to Sales was posted as a $150 credit.By what amount is Sales in error?

An asset created by prepayment of an expense is:

Preparation of a trial balance is the first step in the analyzing and recording process.

The journal is known as the book of final entry because financial statements are prepared from it.

A formal promise to pay (in the form of a promissory note)a future amount is a(n):

The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

A debit:

The trial balance can serve as a replacement for the balance sheet,since debits must equal with credits.

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

Exam 2: Analyzing and Recording Transactions

A company had total assets of $350,000 and total liabilities of $101,500 and total equity of $248,500.Calculate its debt ratio.

A ____________ gives a complete record of each transaction in one place,and shows debits and credits for each transaction.

Asset accounts normally have credit balances and revenue accounts normally have debit balances.

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

If a company purchases land paying cash,the journal entry to record this transaction will include a debit to Cash.

All of the following are liability accounts except:

A $15 credit to Sales was posted as a $150 credit.By what amount is Sales in error?

An asset created by prepayment of an expense is:

Preparation of a trial balance is the first step in the analyzing and recording process.

The journal is known as the book of final entry because financial statements are prepared from it.

A formal promise to pay (in the form of a promissory note)a future amount is a(n):

The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

A debit:

The trial balance can serve as a replacement for the balance sheet,since debits must equal with credits.

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