Question 1

Cost Value is the exchange price associated with a business transaction at the time the transaction is recognized.

Accepted Answer

A) True 
 B)False

Question 2

The recognition issue deals with when a business transaction should be recorded.

Accepted Answer

A) True 
 B)False

Question 3

Provide explanations for the following related journal entries:

Accepted Answer

a.Made advance payment of rent. 
b.Issue

Question 4

A transposition error will cause the trial balance to be out of balance by an amount that is evenly divisible by 7.

Accepted Answer

A) True 
 B)False

Question 5

In a journal entry,debits are always recorded before credits.

Accepted Answer

A) True 
 B)False

Question 6

In the journal provided,prepare journal entries (in good form)for the following transactions.If no entry is required,write "no entry." Omit explanations.

Accepted Answer

The answer of In the journal provided,prepare journal entries (in...

Question 7

The classification issue involves the assignment of accounts to business transactions.

Accepted Answer

A) True 
 B)False

Question 8

In a financial report,a single line is placed below the final total(s).

Accepted Answer

A) True 
 B)False

Question 9

One might see "J2" correctly placed in the Post.Ref.column of the journal.

Accepted Answer

A) True 
 B)False

Question 10

A $95 credit item is posted as a debit.The trial balance column totals therefore will differ by

Accepted Answer

A)  $190. 
B)  $380. 
C)  $95. 
D)  $0. 
A)  $190. 
B)  $380. 
C)  $95. 
D)  $0.

Question 11

In the journal provided,prepare journal entries without explanations for the following transactions.Write "no entry" if none is needed.
a.Received a $3,000 invoice for this month's rent.Payment will not be made right away.
b.Paid $3,200 for insurance premiums to cover the next six months.
c.A $700 dividend is declared and paid.
d.The rent invoice (in a)is paid.
e.Purchased land for $120,000.The company paid half in cash and issued a promissory note for the other half.

Accepted Answer

The answer of In the journal provided,prepare journal entries without...

Question 12

The dividends account has a normal credit balance.

Accepted Answer

A) True 
 B)False

Question 13

Dividends are classified as an expense.

Accepted Answer

A) True 
 B)False

Question 14

When a magazine company receives advance payment for a subscription,what is the required journal entry to be recorded?

Accepted Answer

A)  Cash - Debit; Unearned Subscriptions Revenue - Credit 
B)  Accounts Receivable - Debit; Unearned Subscriptions Revenue - Credit 
C)  Cash - Debit; Subscriptions Revenue - Credit 
D)  Subscriptions Revenue - Debit; Cash - Credit 
A)  Cash - Debit; Unearned Subscriptions Revenue - Credit 
B)  Accounts Receivable - Debit; Unearned Subscriptions Revenue - Credit 
C)  Cash - Debit; Subscriptions Revenue - Credit 
D)  Subscriptions Revenue - Debit; Cash - Credit

Question 15

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

Accepted Answer

A)  Design Revenue 
B)  Notes Receivable 
C)  Accounts Payable 
D)  Prepaid Rent 
A)  Design Revenue 
B)  Notes Receivable 
C)  Accounts Payable 
D)  Prepaid Rent

Question 16

The valuation issue deals with how the components of a transaction should be categorized.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following accounts has a normal debit balance?

Accepted Answer

A)  Revenues Earned 
B)  Accounts Payable 
C)  Inventory 
D)  Retained Earnings 
A)  Revenues Earned 
B)  Accounts Payable 
C)  Inventory 
D)  Retained Earnings

Question 18

A decrease in a liability is recorded by a debit.

Accepted Answer

A) True 
 B)False

Question 19

When a company has performed a service but has not yet received payment,what is the required journal entry to be recorded?

Accepted Answer

A)  Accounts Receivable - Debit; Revenue from Services - Credit 
B)  Revenue from Services - Debit; Cash - Credit 
C)  Unearned Revenue from Services - Debit; Accounts Receivable - Credit 
D)  Revenue from Services - Debit; Accounts Receivable - Credit 
A)  Accounts Receivable - Debit; Revenue from Services - Credit 
B)  Revenue from Services - Debit; Cash - Credit 
C)  Unearned Revenue from Services - Debit; Accounts Receivable - Credit 
D)  Revenue from Services - Debit; Accounts Receivable - Credit

Question 20

A net income of $10,000 means that the business received $10,000 more in cash from its customers than it spent to run the business.

Accepted Answer

A) True 
 B)False

Cost Value is the exchange price associated with a business transaction at the time the transaction is recognized.

The recognition issue deals with when a business transaction should be recorded.

Provide explanations for the following related journal entries:

A transposition error will cause the trial balance to be out of balance by an amount that is evenly divisible by 7.

In a journal entry,debits are always recorded before credits.

In the journal provided,prepare journal entries (in good form)for the following transactions.If no entry is required,write "no entry." Omit explanations.

The classification issue involves the assignment of accounts to business transactions.

In a financial report,a single line is placed below the final total(s).

One might see "J2" correctly placed in the Post.Ref.column of the journal.

A $95 credit item is posted as a debit.The trial balance column totals therefore will differ by

The dividends account has a normal credit balance.

Dividends are classified as an expense.

When a magazine company receives advance payment for a subscription,what is the required journal entry to be recorded?

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

The valuation issue deals with how the components of a transaction should be categorized.

Which of the following accounts has a normal debit balance?

A decrease in a liability is recorded by a debit.

When a company has performed a service but has not yet received payment,what is the required journal entry to be recorded?

A net income of $10,000 means that the business received $10,000 more in cash from its customers than it spent to run the business.

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

Cost Value is the exchange price associated with a business transaction at the time the transaction is recognized.

The recognition issue deals with when a business transaction should be recorded.

Provide explanations for the following related journal entries:

A transposition error will cause the trial balance to be out of balance by an amount that is evenly divisible by 7.

In a journal entry,debits are always recorded before credits.

In the journal provided,prepare journal entries (in good form)for the following transactions.If no entry is required,write "no entry." Omit explanations.

The classification issue involves the assignment of accounts to business transactions.

In a financial report,a single line is placed below the final total(s).

One might see "J2" correctly placed in the Post.Ref.column of the journal.

A $95 credit item is posted as a debit.The trial balance column totals therefore will differ by

The dividends account has a normal credit balance.

Dividends are classified as an expense.

When a magazine company receives advance payment for a subscription,what is the required journal entry to be recorded?

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

The valuation issue deals with how the components of a transaction should be categorized.

Which of the following accounts has a normal debit balance?

A decrease in a liability is recorded by a debit.

When a company has performed a service but has not yet received payment,what is the required journal entry to be recorded?

A net income of $10,000 means that the business received $10,000 more in cash from its customers than it spent to run the business.

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