Question 1

___________________ are promises of payment from customers to sellers.

Accepted Answer

The answer of ___________________ are promises of payment from customers...

Question 2

Zed Bennett opened an art gallery and as a dealer completed these transactions:
1)Started the gallery,Artery,by investing $40,000 cash and equipment valued at $18,000.
2)Purchased $70 of office supplies on credit.
3)Paid $1,200 cash for the receptionist's salary.
4)Sold a painting for an artist and collected a $4,500 cash commission on the sale.
5)Completed an art appraisal and billed the client $200.
What was the balance of the cash account after these transactions were posted?

Accepted Answer

A) $12,230. 
B) $12,430. 
C) $43,300. 
D) $43,430. 
E) $61,430. 
A) $12,230. 
B) $12,430. 
C) $43,300. 
D) $43,430. 
E) $61,430.

Question 3

A trial balance taken at year-end showed total credits exceed total debits by $4,950.This discrepancy could have been caused by:

Accepted Answer

A) An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash. 
B) A net income of $4,950. 
C) The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950. 
D) The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550. 
E) An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable. 
A) An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash. 
B) A net income of $4,950. 
C) The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950. 
D) The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550. 
E) An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

Question 4

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 5

The general journal provides a place for recording all of the following except:

Accepted Answer

A) The transaction date. 
B) The names of the accounts involved. 
C) The amount of each debit and credit. 
D) An explanation of the transaction. 
E) The balance in each account. 
A) The transaction date. 
B) The names of the accounts involved. 
C) The amount of each debit and credit. 
D) An explanation of the transaction. 
E) The balance in each account.

Question 6

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Accepted Answer

A) True 
 B)False

Question 7

The balance sheet provides a link between beginning and ending income statements.

Accepted Answer

A) True 
 B)False

Question 8

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):

Accepted Answer

A) Account. 
B) Trial balance. 
C) Journal. 
D) T-account. 
E) Balance column account. 
A) Account. 
B) Trial balance. 
C) Journal. 
D) T-account. 
E) Balance column account.

Question 9

Credits always increase account balances.

Accepted Answer

A) True 
 B)False

Question 10

An income statement reports the revenues earned less expenses incurred by a business over a period of time.

Accepted Answer

A) True 
 B)False

Question 11

An account format that is similar to a T-account in that it has columns for debits and credits,but that is different in that it has columns for transaction date,explanation,and the account balance is the _____________________.

Accepted Answer

balance co

Question 12

Debit means the right side of an account.

Accepted Answer

A) True 
 B)False

Question 13

The chart of accounts is a list of all the accounts used by a company and includes an identification number assigned to each account.

Accepted Answer

A) True 
 B)False

Question 14

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _______________ for $25,000 and the cash account is _______________ for $25,000.

Accepted Answer

answers need to app

Question 15

If the Debit and Credit column totals of a trial balance are equal,then:

Accepted Answer

A) All transactions have been recorded correctly. 
B) All entries from the journal have been posted to the ledger correctly. 
C) All ledger account balances are correct. 
D) The total debit entries and total credit entries are equal. 
E) The balance sheet would be correct. 
A) All transactions have been recorded correctly. 
B) All entries from the journal have been posted to the ledger correctly. 
C) All ledger account balances are correct. 
D) The total debit entries and total credit entries are equal. 
E) The balance sheet would be correct.

Question 16

The numbering system used in a company's chart of accounts:

Accepted Answer

A) Is the same for all companies. 
B) Is determined by generally accepted accounting principles. 
C) Depends on the source documents used in the accounting process. 
D) Typically begins with balance sheet accounts. 
E) Typically begins with income statement accounts. 
A) Is the same for all companies. 
B) Is determined by generally accepted accounting principles. 
C) Depends on the source documents used in the accounting process. 
D) Typically begins with balance sheet accounts. 
E) Typically begins with income statement accounts.

Question 17

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers 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 18

The process of transferring general journal information to the ledger is:

Accepted Answer

A) Double-entry accounting. 
B) Posting. 
C) Balancing an account. 
D) Journalizing. 
E) Not required unless debits do not equal credits. 
A) Double-entry accounting. 
B) Posting. 
C) Balancing an account. 
D) Journalizing. 
E) Not required unless debits do not equal credits.

Question 19

On September 30,the Cash account of Value Company had a normal balance of $5,000.During September,the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Accepted Answer

A) A $0 balance. 
B) A $4,300 debit balance. 
C) A $4,300 credit balance. 
D) A $5,700 debit balance. 
E) A $5,700 credit balance. 
A) A $0 balance. 
B) A $4,300 debit balance. 
C) A $4,300 credit balance. 
D) A $5,700 debit balance. 
E) A $5,700 credit balance.

Question 20

A record of the increases and decreases in a specific asset,liability,equity,revenue,or expense is a(n):

Accepted Answer

A) Journal. 
B) Posting. 
C) Trial balance. 
D) Account. 
E) Chart of accounts. 
A) Journal. 
B) Posting. 
C) Trial balance. 
D) Account. 
E) Chart of accounts.

Exam 2: Analyzing and Recording Transactions

___________________ are promises of payment from customers to sellers.

A trial balance taken at year-end showed total credits exceed total debits by $4,950.This discrepancy could have been caused by:

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.

The general journal provides a place for recording all of the following except:

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

The balance sheet provides a link between beginning and ending income statements.

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):

Credits always increase account balances.

An income statement reports the revenues earned less expenses incurred by a business over a period of time.

An account format that is similar to a T-account in that it has columns for debits and credits,but that is different in that it has columns for transaction date,explanation,and the account balance is the _____________________.

Debit means the right side of an account.

The chart of accounts is a list of all the accounts used by a company and includes an identification number assigned to each account.

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _______________ for $25,000 and the cash account is _______________ for $25,000.

If the Debit and Credit column totals of a trial balance are equal,then:

The numbering system used in a company's chart of accounts:

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

The process of transferring general journal information to the ledger is:

On September 30,the Cash account of Value Company had a normal balance of $5,000.During September,the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

A record of the increases and decreases in a specific asset,liability,equity,revenue,or expense is a(n):

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

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _ for $25,000 and the cash account is _ for $25,000.