Question 1

At year-end, a trial balance showed total credits exceeding total debits by $4,950. This difference 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 2

________ is the process of transferring journal entry information from the journal to the ledger.

Accepted Answer

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

Question 3

Revenues and expenses are two categories of ________ accounts.

Accepted Answer

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

Question 4

A double-entry accounting system is an accounting system:

Accepted Answer

A)  That records each transaction twice. 
B)  That records the effects of transactions and other events in at least two accounts with equal debits and credits. 
C)  In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. 
D)  That may only be used if T-accounts are used. 
E)  That insures that errors never occur. 
A)  That records each transaction twice. 
B)  That records the effects of transactions and other events in at least two accounts with equal debits and credits. 
C)  In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. 
D)  That may only be used if T-accounts are used. 
E)  That insures that errors never occur.

Question 5

At the end of its first month of operations, Michael's Consulting Services reported net income of $25,000. They also had account balances of: Cash, $18,000; Office Supplies, $2,000 and Accounts Receivable $10,000. The sole stockholder's total investment in exchange for common stock for this first month was $5,000. There were no dividends in the first month. Calculate the amount of total equity to be reported on the balance sheet at the end of the month.

Accepted Answer

A)  $30,000 
B)  $25,000 
C)  $20,000 
D)  $5,000 
E)  $7,000 
A)  $30,000 
B)  $25,000 
C)  $20,000 
D)  $5,000 
E)  $7,000

Question 6

Debits increase asset and expense accounts.

Accepted Answer

A) True 
 B)False

Question 7

Identify the account below that impacts the Equity of a business:

Accepted Answer

A)  Utilities Expense 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Cash 
E)  Unearned Revenue 
A)  Utilities Expense 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Cash 
E)  Unearned Revenue

Question 8

Identify the item below that would cause the trial balance to not balance.

Accepted Answer

A)  A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. 
B)  The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies Normal 0 false false false EN-IN X-NONE X-NONE and $2,350 credit to Accounts Payable. 
C)  A $50 cash receipt for the performance of a service was not recorded at all. 
D)  The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200. 
E)  The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750. 
A)  A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. 
B)  The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies Normal 0 false false false EN-IN X-NONE X-NONE and $2,350 credit to Accounts Payable. 
C)  A $50 cash receipt for the performance of a service was not recorded at all. 
D)  The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200. 
E)  The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

Question 9

Identify the account below that is classified as a liability account:

Accepted Answer

A)  Cash 
B)  Accounts Payable 
C)  Salaries Expense 
D)  Common Stock 
E)  Equipment 
A)  Cash 
B)  Accounts Payable 
C)  Salaries Expense 
D)  Common Stock 
E)  Equipment

Question 10

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

Accepted Answer

Debt Ratio = Total L

Question 11

The four categories of equity accounts are ________, ________, ________, and ________.

Accepted Answer

Common Sto

Question 12

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

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 13

A company's list of accounts and the identification numbers assigned to each account is called a:

Accepted Answer

A)  Source document. 
B)  Journal. 
C)  Trial balance. 
D)  Chart of accounts. 
E)  General Journal. 
A)  Source document. 
B)  Journal. 
C)  Trial balance. 
D)  Chart of accounts. 
E)  General Journal.

Question 14

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: • Andrea invested $13,500 cash in the business in exchange for common stock.
• Andrea contributed $20,000 of photography equipment to the business.
• The company paid $2,100 cash for an insurance policy covering the next 24 months.
• The company received $5,700 cash for services provided during January.
• The company purchased $6,200 of office equipment on credit.
• The company provided $2,750 of services to customers on account.
• The company paid cash of $1,500 for monthly rent.
• The company paid $3,100 on the office equipment purchased in transaction #5 above.
• 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 15

The amount of net income is added on the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 16

Funky Music 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

The answer of Funky Music purchased $25,000 of equipment for...

Question 17

Bologna Lodging had the following accounts and balances as of December 31: $\begin{array}{l}
\begin{array}{lll}
  \text {Account}\
  \text {Cash}\
  \text {Accounts Receivable}\
  \text {Salaries Expense}\
  \text {Accounts Payable}\
  \text {Lodging Revenue}\
  \text {Utilities Expense}\
  \text {Prepaid Insurance}\
  \text {Supplies}\
  \text {Common Stock}\
  \text {Retained Earnings}\
  \text {Totals}\
\end{array}
\begin{array}{lll}
  \text {Debit }&\text {Credit}\
\$ 20,000 & & \
2,000 & & \
500 & & \
& \$  4,000 \
& 7,000 \
500 & & \
1,400 & & \
1,500 & & \
&  10,000 \
\underline { \quad\quad\quad\quad }&  \underline { 4,900}\
\underline { \$ 25,900}&\underline { \$ 25,900}\
\end{array}
\end{array}$ Using the information in the table, calculate the total assets reported on Bologna's balance sheet for the period.

Accepted Answer

A)  $ 24,900. 
B)  $ 25,400. 
C)  $ 22,500. 
D)  $ 25,900. 
E)  $ 23,400. 
A)  $ 24,900. 
B)  $ 25,400. 
C)  $ 22,500. 
D)  $ 25,900. 
E)  $ 23,400.

Question 18

A debit entry is always an increase in the account.

Accepted Answer

A) True 
 B)False

Question 19

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 needed 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 needed to record a transaction.

Question 20

The debt ratio is used:

Accepted Answer

A)  To measure the ratio of equity to expenses. 
B)  To assess the risk associated with a company's use of liabilities. 
C)  Only by banks when a business applies for a loan. 
D)  To determine how much debt a firm should pay off. 
E)  To determine how much debt a company should borrow. 
A)  To measure the ratio of equity to expenses. 
B)  To assess the risk associated with a company's use of liabilities. 
C)  Only by banks when a business applies for a loan. 
D)  To determine how much debt a firm should pay off. 
E)  To determine how much debt a company should borrow.

At year-end, a trial balance showed total credits exceeding total debits by $4,950. This difference could have been caused by:

________ is the process of transferring journal entry information from the journal to the ledger.

Revenues and expenses are two categories of ________ accounts.

A double-entry accounting system is an accounting system:

Debits increase asset and expense accounts.

Identify the account below that impacts the Equity of a business:

Identify the item below that would cause the trial balance to not balance.

Identify the account below that is classified as a liability account:

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

The four categories of equity accounts are , , , and .

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

A company's list of accounts and the identification numbers assigned to each account is called a:

The amount of net income is added on the statement of retained earnings.

Funky Music purchased $25,000 of equipment for cash. The Equipment asset account is for $25,000 and the Cash account is for $25,000.

A debit entry is always an increase in the account.

A debit:

The debt ratio is used:

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Partnership Accounting

Filters

Exam 15: Analyzing for Business Transactions

At year-end, a trial balance showed total credits exceeding total debits by $4,950. This difference could have been caused by:

________ is the process of transferring journal entry information from the journal to the ledger.

Revenues and expenses are two categories of ________ accounts.

A double-entry accounting system is an accounting system:

Debits increase asset and expense accounts.

Identify the account below that impacts the Equity of a business:

Identify the item below that would cause the trial balance to not balance.

Identify the account below that is classified as a liability account:

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

The four categories of equity accounts are ________, ________, ________, and ________.

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

A company's list of accounts and the identification numbers assigned to each account is called a:

The amount of net income is added on the statement of retained earnings.

Funky Music purchased $25,000 of equipment for cash. The Equipment asset account is ________ for $25,000 and the Cash account is ________ for $25,000.

A debit entry is always an increase in the account.

A debit:

The debt ratio is used:

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Partnership Accounting

Filters

The four categories of equity accounts are , , , and .

Funky Music purchased $25,000 of equipment for cash. The Equipment asset account is for $25,000 and the Cash account is for $25,000.