Question 1

Record the following transactions,using proper form,in the journal provided.

Accepted Answer

The answer of Record the following transactions,using proper form,in the...

Question 2

Which of the following is a business event that is not considered a recordable transaction?

Accepted Answer

A)  A company receives a product previously ordered. 
B)  A company pays an employee for work performed. 
C)  A customer inquires about the availability of a service. 
D)  A customer purchases a service. 
A)  A company receives a product previously ordered. 
B)  A company pays an employee for work performed. 
C)  A customer inquires about the availability of a service. 
D)  A customer purchases a service.

Question 3

Which of the following is a business event that is considered a recordable transaction?

Accepted Answer

A)  A company hires a new employee. 
B)  A customer purchases merchandise. 
C)  A customer inquires about the availability of a product. 
D)  The purchasing department sends a purchase order to the supplier. 
A)  A company hires a new employee. 
B)  A customer purchases merchandise. 
C)  A customer inquires about the availability of a product. 
D)  The purchasing department sends a purchase order to the supplier.

Question 4

Which of the following accounts is decreased with a debit?

Accepted Answer

A)  Accounts Payable 
B)  Accounts Receivable 
C)  Rent Expense 
D)  Dividends 
A)  Accounts Payable 
B)  Accounts Receivable 
C)  Rent Expense 
D)  Dividends

Question 5

A basic storage unit for accounting data is the account.

Accepted Answer

A) True 
 B)False

Question 6

A decrease in a dividend account is recorded with a credit.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following transactions affects retained earnings?

Accepted Answer

A)  Declaration and payment of dividends 
B)  Prepayment of rent 
C)  Investments by stockholders 
D)  Obtaining a new loan 
A)  Declaration and payment of dividends 
B)  Prepayment of rent 
C)  Investments by stockholders 
D)  Obtaining a new loan

Question 8

One can obtain a clear picture of a company's liquidity by referring to its statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 9

Match each definition with the correct term below.
-Cost principle

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 10

When a company purchases goods that it will resell,it must record the goods in an asset account.

Accepted Answer

A) True 
 B)False

Question 11

Accounts Receivable and Accounts Payable are used when there is a time delay between a transaction and its related cash flow.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true about a journal entry?

Accepted Answer

A)  The Post.Ref.column is filled in prior to posting. 
B)  All credits are listed before any debits. 
C)  The name of the month should be repeated for each entry. 
D)  An explanation must follow each journal entry. 
A)  The Post.Ref.column is filled in prior to posting. 
B)  All credits are listed before any debits. 
C)  The name of the month should be repeated for each entry. 
D)  An explanation must follow each journal entry.

Question 13

The most generally accepted value used in accounting is market value.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following errors will cause a trial balance to be out of balance?

Accepted Answer

A)  The bookkeeper forgot to journalize a transaction. 
B)  The bookkeeper forgot to post a journal entry to the ledger. 
C)  A credit was posted to an account as a debit. 
D)  A debit to Office Equipment was incorrectly debited to Office Supplies. 
A)  The bookkeeper forgot to journalize a transaction. 
B)  The bookkeeper forgot to post a journal entry to the ledger. 
C)  A credit was posted to an account as a debit. 
D)  A debit to Office Equipment was incorrectly debited to Office Supplies.

Question 15

It is sometimes correct for a compound entry's debit totals and credit totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 16

Why is the Dividends account increased by a debit? Explain in terms of its relationship to stockholders' equity.

Accepted Answer

Dividends represent a decrease

Question 17

Wages payable is a type of liability.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The issue of deciding when to record a transaction is solved by

Accepted Answer

A)  properly classifying the transaction. 
B)  determining a point of recognition. 
C)  assigning actual cost to the transaction. 
D)  assigning a recurring order date. 
A)  properly classifying the transaction. 
B)  determining a point of recognition. 
C)  assigning actual cost to the transaction. 
D)  assigning a recurring order date.

Question 20

Which of the following events does not require a journal entry?

Accepted Answer

A)  Purchase of a one-year insurance policy 
B)  Agreement to perform a service at a future date 
C)  Performance of a service agreed to at a past date 
D)  Payment for a service performed previously 
A)  Purchase of a one-year insurance policy 
B)  Agreement to perform a service at a future date 
C)  Performance of a service agreed to at a past date 
D)  Payment for a service performed previously

Record the following transactions,using proper form,in the journal provided.

Which of the following is a business event that is not considered a recordable transaction?

Which of the following is a business event that is considered a recordable transaction?

Which of the following accounts is decreased with a debit?

A basic storage unit for accounting data is the account.

A decrease in a dividend account is recorded with a credit.

Which of the following transactions affects retained earnings?

One can obtain a clear picture of a company's liquidity by referring to its statement of cash flows.

Match each definition with the correct term below. -Cost principle

When a company purchases goods that it will resell,it must record the goods in an asset account.

Accounts Receivable and Accounts Payable are used when there is a time delay between a transaction and its related cash flow.

Which of the following statements is true about a journal entry?

The most generally accepted value used in accounting is market value.

Which of the following errors will cause a trial balance to be out of balance?

It is sometimes correct for a compound entry's debit totals and credit totals to be unequal.

Why is the Dividends account increased by a debit? Explain in terms of its relationship to stockholders' equity.

Wages payable is a type of liability.

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

The issue of deciding when to record a transaction is solved by

Which of the following events does not require a journal entry?

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

Record the following transactions,using proper form,in the journal provided.

Which of the following is a business event that is not considered a recordable transaction?

Which of the following is a business event that is considered a recordable transaction?

Which of the following accounts is decreased with a debit?

A basic storage unit for accounting data is the account.

A decrease in a dividend account is recorded with a credit.

Which of the following transactions affects retained earnings?

One can obtain a clear picture of a company's liquidity by referring to its statement of cash flows.

Match each definition with the correct term below. -Cost principle

When a company purchases goods that it will resell,it must record the goods in an asset account.

Accounts Receivable and Accounts Payable are used when there is a time delay between a transaction and its related cash flow.

Which of the following statements is true about a journal entry?

The most generally accepted value used in accounting is market value.

Which of the following errors will cause a trial balance to be out of balance?

It is sometimes correct for a compound entry's debit totals and credit totals to be unequal.

Why is the Dividends account increased by a debit? Explain in terms of its relationship to stockholders' equity.

Wages payable is a type of liability.

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

The issue of deciding when to record a transaction is solved by

Which of the following events does not require a journal entry?

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