Question 1

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 2

A purchase is recognized in the accounting records when

Accepted Answer

A)  an order is placed with the seller 
B)  the purchase requisition is sent to the purchasing department. 
C)  title transfers from the seller to the buyer. 
D)  the buyer receives the bill from the seller 
A)  an order is placed with the seller 
B)  the purchase requisition is sent to the purchasing department. 
C)  title transfers from the seller to the buyer. 
D)  the buyer receives the bill from the seller

Question 3

When collection is made on Accounts Receivable,

Accepted Answer

A)  stockholders' equity increases. 
B)  total assets decrease. 
C)  total assets remain the same. 
D)  total assets increase. 
A)  stockholders' equity increases. 
B)  total assets decrease. 
C)  total assets remain the same. 
D)  total assets increase.

Question 4

Briefly discuss the differences between Prepaid Insurance and Insurance Expense.

Accepted Answer

Prepaid Insurance appears on t

Question 5

Here is the trial balance for Sebastian Corporation:   If the balance of the Dividends account were $72,000 and the balance of the Wages Expense account were $10,000,what would be the amount of B?

Accepted Answer

A)  $96,000 
B)  $122,000 
C)  $164,000 
D)  $124,000 
A)  $96,000 
B)  $122,000 
C)  $164,000 
D)  $124,000

Question 6

Lindsay Company had the following transactions for the month of August.
   Assuming all accounts were zero at the beginning of the month,determine the cash balance after these transactions.

Accepted Answer

Cash balance = $3,50

Question 7

Which of the following errors will not cause the debit and credit columns of a trial balance to be unequal?

Accepted Answer

A)  A debit was posted to an account as a credit. 
B)  A journal entry was posted twice. 
C)  The trial balance was incorrectly summed. 
D)  Only part of a journal entry was posted. 
A)  A debit was posted to an account as a credit. 
B)  A journal entry was posted twice. 
C)  The trial balance was incorrectly summed. 
D)  Only part of a journal entry was posted.

Question 8

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

Accepted Answer

A)  Posting a debit to Land as a debit to Machinery 
B)  Placing a debit balance amount into the credit balance column of the ledger 
C)  Omitting an entire transaction 
D)  Incorrectly recording the purchase of land for cash as a debit to Cash and a credit to Land 
A)  Posting a debit to Land as a debit to Machinery 
B)  Placing a debit balance amount into the credit balance column of the ledger 
C)  Omitting an entire transaction 
D)  Incorrectly recording the purchase of land for cash as a debit to Cash and a credit to Land

Question 9

Provide explanations for the following related journal entries:

Accepted Answer

a.Stockholders invested cash into the bu

Question 10

Which of the following accounts is increased with a credit?

Accepted Answer

A)  Cash 
B)  Revenues Earned 
C)  Rent Expense 
D)  Dividends 
A)  Cash 
B)  Revenues Earned 
C)  Rent Expense 
D)  Dividends

Question 11

A debit has a favorable effect on an account.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following accounts is classified differently from the others listed?

Accepted Answer

A)  Utilities Payable 
B)  Unearned Revenue 
C)  Accounts Payable 
D)  Rent Expense 
A)  Utilities Payable 
B)  Unearned Revenue 
C)  Accounts Payable 
D)  Rent Expense

Question 13

Match each definition with the correct term below.
-Journal

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 14

All of the following actions can help a business manage its cash flows except

Accepted Answer

A)  convince its creditors to allow payment over a period of time. 
B)  pay for all expenditures immediately. 
C)  be efficient in making collections from its customers. 
D)  arrange for a line of credit at the bank,should the funds be needed. 
A)  convince its creditors to allow payment over a period of time. 
B)  pay for all expenditures immediately. 
C)  be efficient in making collections from its customers. 
D)  arrange for a line of credit at the bank,should the funds be needed.

Question 15

Here is the trial balance for Sebastian Corporation:   If the trial balance showed a balance of $8,000 in the Wages Expense account and a balance of $60,000 in the Advertising Fees Earned account,what would be the amount of Dividends?

Accepted Answer

A)  $50,000 
B)  $28,000 
C)  $10,000 
D)  $38,000 
A)  $50,000 
B)  $28,000 
C)  $10,000 
D)  $38,000

Question 16

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

Accepted Answer

Business events become transactions and

Question 17

When a company makes an order,a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 18

Unearned revenues are recorded by companies that

Accepted Answer

A)  receive money in advance of the performance of a service. 
B)  pay money at the time the performance of a service is complete. 
C)  receive money at the time the performance of a service is complete. 
D)  pay money in advance of the performance of a service. 
A)  receive money in advance of the performance of a service. 
B)  pay money at the time the performance of a service is complete. 
C)  receive money at the time the performance of a service is complete. 
D)  pay money in advance of the performance of a service.

Question 19

When a company receives a product previously ordered,a recordable transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 20

The practice of recording transactions at cost is called

Accepted Answer

A)  cost classification. 
B)  the cost principle. 
C)  the valuation issue. 
D)  cost recognition. 
A)  cost classification. 
B)  the cost principle. 
C)  the valuation issue. 
D)  cost recognition.

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

A purchase is recognized in the accounting records when

When collection is made on Accounts Receivable,

Briefly discuss the differences between Prepaid Insurance and Insurance Expense.

Here is the trial balance for Sebastian Corporation: If the balance of the Dividends account were $72,000 and the balance of the Wages Expense account were $10,000,what would be the amount of B?

Lindsay Company had the following transactions for the month of August. Assuming all accounts were zero at the beginning of the month,determine the cash balance after these transactions.

Which of the following errors will not cause the debit and credit columns of a trial balance to be unequal?

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

Provide explanations for the following related journal entries:

Which of the following accounts is increased with a credit?

A debit has a favorable effect on an account.

Which of the following accounts is classified differently from the others listed?

Match each definition with the correct term below. -Journal

All of the following actions can help a business manage its cash flows except

Here is the trial balance for Sebastian Corporation: If the trial balance showed a balance of $8,000 in the Wages Expense account and a balance of $60,000 in the Advertising Fees Earned account,what would be the amount of Dividends?

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

When a company makes an order,a transaction has occurred.

Unearned revenues are recorded by companies that

When a company receives a product previously ordered,a recordable transaction has occurred.

The practice of recording transactions at cost is called

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

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

A purchase is recognized in the accounting records when

When collection is made on Accounts Receivable,

Briefly discuss the differences between Prepaid Insurance and Insurance Expense.

Here is the trial balance for Sebastian Corporation: If the balance of the Dividends account were $72,000 and the balance of the Wages Expense account were $10,000,what would be the amount of B?

Lindsay Company had the following transactions for the month of August. Assuming all accounts were zero at the beginning of the month,determine the cash balance after these transactions.

Which of the following errors will not cause the debit and credit columns of a trial balance to be unequal?

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

Provide explanations for the following related journal entries:

Which of the following accounts is increased with a credit?

A debit has a favorable effect on an account.

Which of the following accounts is classified differently from the others listed?

Match each definition with the correct term below. -Journal

All of the following actions can help a business manage its cash flows except

Here is the trial balance for Sebastian Corporation: If the trial balance showed a balance of $8,000 in the Wages Expense account and a balance of $60,000 in the Advertising Fees Earned account,what would be the amount of Dividends?

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

When a company makes an order,a transaction has occurred.

Unearned revenues are recorded by companies that

When a company receives a product previously ordered,a recordable transaction has occurred.

The practice of recording transactions at cost is called

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