Question 1

When a business correctly records its expenses and assets,it has correctly addressed the measurement issue of

Accepted Answer

A)  communication. 
B)  classification. 
C)  valuation. 
D)  recognition. 
A)  communication. 
B)  classification. 
C)  valuation. 
D)  recognition.

Question 2

The Unearned Fees account is classified as a(n)

Accepted Answer

A)  liability. 
B)  revenue. 
C)  asset. 
D)  dividend. 
A)  liability. 
B)  revenue. 
C)  asset. 
D)  dividend.

Question 3

Despite the advantages of a computer accounting information system,the ledger still must be maintained manually.

Accepted Answer

A) True 
 B)False

Question 4

Post the following transaction.

Accepted Answer

The answer of Post the following transaction.
   ...

Question 5

Expenses should be recorded when they have been incurred,not when they are paid.

Accepted Answer

A) True 
 B)False

Question 6

To find an explanation of a transaction,one should look at the

Accepted Answer

A)  posting entry. 
B)  financial statements. 
C)  journal. 
D)  chart of accounts. 
A)  posting entry. 
B)  financial statements. 
C)  journal. 
D)  chart of accounts.

Question 7

When a company receives an electric bill but does not pay it right away,what is the required journal entry to be recorded?

Accepted Answer

A)  Utilities Expense - Debit; Accounts Receivable - Credit 
B)  No entry is required until the bill is paid. 
C)  Utilities Expense - Debit; Accounts Payable - Credit 
D)  Accounts Payable - Debit; Utilities Expense - Credit 
A)  Utilities Expense - Debit; Accounts Receivable - Credit 
B)  No entry is required until the bill is paid. 
C)  Utilities Expense - Debit; Accounts Payable - Credit 
D)  Accounts Payable - Debit; Utilities Expense - Credit

Question 8

In a journal entry,credits are always indented.

Accepted Answer

A) True 
 B)False

Question 9

By what amount,if any,would each of the following errors cause a trial balance to be out of balance?
a.A purchase of supplies of $840 was recorded as a debit to Equipment and a credit to Cash for $840.
b.An $890 balance in Prepaid Insurance was copied to the trial balance as a debit of $980.
c.A $600 balance in Accounts Payable was copied to the trial balance as a debit of $600.

Accepted Answer

a.$0 
b.$9

Question 10

Which pair of accounts follows the rules of debit and credit in the same manner?

Accepted Answer

A)  Revenue from Services and Equipment 
B)  Inventory and Advertising Expense 
C)  Repair Expense and Accounts Payable 
D)  Common Stock and Cash 
A)  Revenue from Services and Equipment 
B)  Inventory and Advertising Expense 
C)  Repair Expense and Accounts Payable 
D)  Common Stock and Cash

Question 11

From the following alphabetical list of account balances,all of which are normal,for Aloha Corporation on September 30,2013,prepare a trial balance in proper form (the amount of Dividends must be computed).

Accepted Answer

@#IMG-DLM& (Dividends = $3,000

Question 12

Which of the following accounts is not a stockholders' equity account?

Accepted Answer

A)  Common Stock 
B)  Retained Earnings 
C)  Unearned Fees 
D)  Dividends 
A)  Common Stock 
B)  Retained Earnings 
C)  Unearned Fees 
D)  Dividends

Question 13

An increase in revenue is recorded with a credit.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following transactions increases liabilities and decreases stockholders' equity?

Accepted Answer

A)  Declaration and payment of a dividend 
B)  Advance payment made for insurance 
C)  Receipt of a phone bill to be paid at a later time 
D)  Payment of a liability 
A)  Declaration and payment of a dividend 
B)  Advance payment made for insurance 
C)  Receipt of a phone bill to be paid at a later time 
D)  Payment of a liability

Question 15

Using the alphabetical list of account balances presented below,all of which are normal,prepare a trial balance for Garland Corporation at June 30,2013,in proper order.Compute the balance of the Cash account.

Accepted Answer

@#IMG-DLM& (Cash = $

Question 16

Which of the following is not a measurement issue in accounting?

Accepted Answer

A)  Valuation 
B)  Recognition 
C)  Evaluation 
D)  Classification 
A)  Valuation 
B)  Recognition 
C)  Evaluation 
D)  Classification

Question 17

Typically,the chart of accounts begins with

Accepted Answer

A)  stockholders' equity accounts. 
B)  asset accounts. 
C)  liability accounts. 
D)  expense accounts. 
A)  stockholders' equity accounts. 
B)  asset accounts. 
C)  liability accounts. 
D)  expense accounts.

Question 18

Match each definition with the correct term below.
-Fair value

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 19

Another name for the ledger is the book of original entry.

Accepted Answer

A) True 
 B)False

Question 20

What two purposes are served by using the Post.Ref.columns of a journal and ledger?

Accepted Answer

The Post.Ref.columns provide cross-refer

When a business correctly records its expenses and assets,it has correctly addressed the measurement issue of

The Unearned Fees account is classified as a(n)

Despite the advantages of a computer accounting information system,the ledger still must be maintained manually.

Post the following transaction.

Expenses should be recorded when they have been incurred,not when they are paid.

To find an explanation of a transaction,one should look at the

When a company receives an electric bill but does not pay it right away,what is the required journal entry to be recorded?

In a journal entry,credits are always indented.

Which pair of accounts follows the rules of debit and credit in the same manner?

From the following alphabetical list of account balances,all of which are normal,for Aloha Corporation on September 30,2013,prepare a trial balance in proper form (the amount of Dividends must be computed).

Which of the following accounts is not a stockholders' equity account?

An increase in revenue is recorded with a credit.

Which of the following transactions increases liabilities and decreases stockholders' equity?

Using the alphabetical list of account balances presented below,all of which are normal,prepare a trial balance for Garland Corporation at June 30,2013,in proper order.Compute the balance of the Cash account.

Which of the following is not a measurement issue in accounting?

Typically,the chart of accounts begins with

Match each definition with the correct term below. -Fair value

Another name for the ledger is the book of original entry.

What two purposes are served by using the Post.Ref.columns of a journal and ledger?

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

When a business correctly records its expenses and assets,it has correctly addressed the measurement issue of

The Unearned Fees account is classified as a(n)

Despite the advantages of a computer accounting information system,the ledger still must be maintained manually.

Post the following transaction.

Expenses should be recorded when they have been incurred,not when they are paid.

To find an explanation of a transaction,one should look at the

When a company receives an electric bill but does not pay it right away,what is the required journal entry to be recorded?

In a journal entry,credits are always indented.

Which pair of accounts follows the rules of debit and credit in the same manner?

From the following alphabetical list of account balances,all of which are normal,for Aloha Corporation on September 30,2013,prepare a trial balance in proper form (the amount of Dividends must be computed).

Which of the following accounts is not a stockholders' equity account?

An increase in revenue is recorded with a credit.

Which of the following transactions increases liabilities and decreases stockholders' equity?

Using the alphabetical list of account balances presented below,all of which are normal,prepare a trial balance for Garland Corporation at June 30,2013,in proper order.Compute the balance of the Cash account.

Which of the following is not a measurement issue in accounting?

Typically,the chart of accounts begins with

Match each definition with the correct term below. -Fair value

Another name for the ledger is the book of original entry.

What two purposes are served by using the Post.Ref.columns of a journal and ledger?

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