Question 1

Which of the following events does not result in the recording of an expense?

Accepted Answer

A)  Payment of insurance six months in advance 
B)  Purchase of gasoline for fill-up of a company car 
C)  Receipt of a bill from the electricity company 
D)  Payment of wages 
A)  Payment of insurance six months in advance 
B)  Purchase of gasoline for fill-up of a company car 
C)  Receipt of a bill from the electricity company 
D)  Payment of wages A

Question 2

Generally,before Accounts Payable is credited,it is debited.

Accepted Answer

A) True 
 B)False  False

Question 3

The general journal makes finding accounts in the ledger easier.

Accepted Answer

A) True 
 B)False  False

Question 4

Unearned revenues are classified as assets on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

A company receives money in advance of performing a service.What is the journal entry for the transaction?

Accepted Answer

A)  Unearned Revenue - Debit; Accounts Payable - Credit 
B)  Cash - Debit; Unearned Revenue - Credit 
C)  Cash - Debit; Prepaid Fees - Credit 
D)  Cash - Debit; Accounts Receivable.- Credit 
A)  Unearned Revenue - Debit; Accounts Payable - Credit 
B)  Cash - Debit; Unearned Revenue - Credit 
C)  Cash - Debit; Prepaid Fees - Credit 
D)  Cash - Debit; Accounts Receivable.- Credit

Question 6

Which account does not affect retained earnings?

Accepted Answer

A)  Dividends 
B)  Sales Revenue 
C)  Rent Expense 
D)  Common Stock 
A)  Dividends 
B)  Sales Revenue 
C)  Rent Expense 
D)  Common Stock

Question 7

The chart of accounts is the starting point for a

Accepted Answer

A)  journal. 
B)  trial balance. 
C)  ledger. 
D)  financial statement. 
A)  journal. 
B)  trial balance. 
C)  ledger. 
D)  financial statement.

Question 8

Given the following ledger account and postings,complete the Balance column.Assume no previous postings in the account.

Accepted Answer

The answer of Given the following ledger account and postings,complete...

Question 9

The journal account form has a Balance column.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following accounts will eventually be followed with an inflow of cash?

Accepted Answer

A)  Prepaid Insurance 
B)  Unearned Revenue 
C)  Dividends 
D)  Accounts Receivable 
A)  Prepaid Insurance 
B)  Unearned Revenue 
C)  Dividends 
D)  Accounts Receivable

Question 11

Match each definition with the correct term below.
-Accounts

Accepted Answer

A) A journal entry that involves more than two accounts. 
B) A list of account numbers with corresponding account titles. 
C) The difficulty of deciding when a business transaction should be recorded. 
D) The difference in dollars between the total debit footing and the total credit footing. 
E) The chronological accounting record sometimes known as the book of original entry.
F)The basic storage units for accounting data.
G)The item that is prepared at the end of the accounting period to test if total debits equals total credits.
H)The process of transferring information from the journal to the ledger.
I)The exchange price of an actual or potential business transaction.
J)The practice of recording transactions at the exchange price at the point of recognition. 
A) A journal entry that involves more than two accounts. 
B) A list of account numbers with corresponding account titles. 
C) The difficulty of deciding when a business transaction should be recorded. 
D) The difference in dollars between the total debit footing and the total credit footing. 
E) The chronological accounting record sometimes known as the book of original entry.
F)The basic storage units for accounting data.
G)The item that is prepared at the end of the accounting period to test if total debits equals total credits.
H)The process of transferring information from the journal to the ledger.
I)The exchange price of an actual or potential business transaction.
J)The practice of recording transactions at the exchange price at the point of recognition.

Question 12

Which of the following statements is not necessarily true about a journal entry?

Accepted Answer

A)  Assets are indented. 
B)  The date of the journal entry is always recorded. 
C)  The Post.Ref.column is left blank until the entry is posted. 
D)  All debits must be recorded before any credits. 
A)  Assets are indented. 
B)  The date of the journal entry is always recorded. 
C)  The Post.Ref.column is left blank until the entry is posted. 
D)  All debits must be recorded before any credits.

Question 13

The ledger is a chronological record of all transactions.

Accepted Answer

A) True 
 B)False

Question 14

For which of the following accounts would a related Accumulated Depreciation account be recorded?

Accepted Answer

A)  Office Equipment 
B)  Land 
C)  Office Supplies 
D)  Prepaid Rent 
A)  Office Equipment 
B)  Land 
C)  Office Supplies 
D)  Prepaid Rent

Question 15

A $4,000 machine is purchased by paying $1,000 cash and issuing a promissory note for the remainder.The journal entry should include a

Accepted Answer

A)  credit to Machinery. 
B)  credit to Notes Payable. 
C)  credit to Notes Receivable. 
D)  debit to Cash. 
A)  credit to Machinery. 
B)  credit to Notes Payable. 
C)  credit to Notes Receivable. 
D)  debit to Cash.

Question 16

Which of the following accounts is an asset?

Accepted Answer

A)  Retained Earnings 
B)  Notes Payable 
C)  Prepaid Rent 
D)  Supplies Expense 
A)  Retained Earnings 
B)  Notes Payable 
C)  Prepaid Rent 
D)  Supplies Expense

Question 17

Match each definition with the correct term below.
-Recognition

Accepted Answer

A) A journal entry that involves more than two accounts. 
B) A list of account numbers with corresponding account titles. 
C) The difficulty of deciding when a business transaction should be recorded. 
D) The difference in dollars between the total debit footing and the total credit footing. 
E) The chronological accounting record sometimes known as the book of original entry.
F)The basic storage units for accounting data.
G)The item that is prepared at the end of the accounting period to test if total debits equals total credits.
H)The process of transferring information from the journal to the ledger.
I)The exchange price of an actual or potential business transaction.
J)The practice of recording transactions at the exchange price at the point of recognition. 
A) A journal entry that involves more than two accounts. 
B) A list of account numbers with corresponding account titles. 
C) The difficulty of deciding when a business transaction should be recorded. 
D) The difference in dollars between the total debit footing and the total credit footing. 
E) The chronological accounting record sometimes known as the book of original entry.
F)The basic storage units for accounting data.
G)The item that is prepared at the end of the accounting period to test if total debits equals total credits.
H)The process of transferring information from the journal to the ledger.
I)The exchange price of an actual or potential business transaction.
J)The practice of recording transactions at the exchange price at the point of recognition.

Question 18

Retained Earnings has a normal debit balance.

Accepted Answer

A) True 
 B)False

Question 19

Explain why the dollar amount of total stockholders' equity probably will not equal the dollar amount that would remain if all the assets were sold and all the liabilities were then settled.

Accepted Answer

The valuation of assets on the balance s

Question 20

Post the following transaction.

Accepted Answer

The answer of Post the following transaction.
   ...

Which of the following events does not result in the recording of an expense?

Generally,before Accounts Payable is credited,it is debited.

The general journal makes finding accounts in the ledger easier.

Unearned revenues are classified as assets on the balance sheet.

A company receives money in advance of performing a service.What is the journal entry for the transaction?

Which account does not affect retained earnings?

The chart of accounts is the starting point for a

Given the following ledger account and postings,complete the Balance column.Assume no previous postings in the account.

The journal account form has a Balance column.

Which of the following accounts will eventually be followed with an inflow of cash?

Match each definition with the correct term below. -Accounts

Which of the following statements is not necessarily true about a journal entry?

The ledger is a chronological record of all transactions.

For which of the following accounts would a related Accumulated Depreciation account be recorded?

A $4,000 machine is purchased by paying $1,000 cash and issuing a promissory note for the remainder.The journal entry should include a

Which of the following accounts is an asset?

Match each definition with the correct term below. -Recognition

Retained Earnings has a normal debit balance.

Explain why the dollar amount of total stockholders' equity probably will not equal the dollar amount that would remain if all the assets were sold and all the liabilities were then settled.

Post the following transaction.

Uses of Accounting Information and the Financial Statements

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters

Exam 2: Analyzing Business Transactions

Which of the following events does not result in the recording of an expense?

Generally,before Accounts Payable is credited,it is debited.

The general journal makes finding accounts in the ledger easier.

Unearned revenues are classified as assets on the balance sheet.

A company receives money in advance of performing a service.What is the journal entry for the transaction?

Which account does not affect retained earnings?

The chart of accounts is the starting point for a

Given the following ledger account and postings,complete the Balance column.Assume no previous postings in the account.

The journal account form has a Balance column.

Which of the following accounts will eventually be followed with an inflow of cash?

Match each definition with the correct term below. -Accounts

Which of the following statements is not necessarily true about a journal entry?

The ledger is a chronological record of all transactions.

For which of the following accounts would a related Accumulated Depreciation account be recorded?

A $4,000 machine is purchased by paying $1,000 cash and issuing a promissory note for the remainder.The journal entry should include a

Which of the following accounts is an asset?

Match each definition with the correct term below. -Recognition

Retained Earnings has a normal debit balance.

Explain why the dollar amount of total stockholders' equity probably will not equal the dollar amount that would remain if all the assets were sold and all the liabilities were then settled.

Post the following transaction.

Uses of Accounting Information and the Financial Statements

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters