Question 1

If the credit portion of a journal entry is posted but the debit side is not,liabilities will always be overstated.

Accepted Answer

A) True 
 B)False

Question 2

Holand,Inc.,determines that depreciation amounts to $900 for the period.The entry includes a

Accepted Answer

A) debit Depreciation Expense and credit Accumulated Depreciation for $900. 
B) debit Accumulated Depreciation and credit Equipment for $900. 
C) debit Depreciation Expense and credit Equipment for $900. 
D) debit Equipment and credit Accumulated Depreciation for $900. 
E) debit Accumulated Depreciation and credit Depreciation Expense for $900. 
A) debit Depreciation Expense and credit Accumulated Depreciation for $900. 
B) debit Accumulated Depreciation and credit Equipment for $900. 
C) debit Depreciation Expense and credit Equipment for $900. 
D) debit Equipment and credit Accumulated Depreciation for $900. 
E) debit Accumulated Depreciation and credit Depreciation Expense for $900.

Question 3

Failure to record depreciation at year-end will

Accepted Answer

A) overstate total liabilities. 
B) understate assets. 
C) overstate assets. 
D) understate owners' equity. 
E) overstate revenue. 
A) overstate total liabilities. 
B) understate assets. 
C) overstate assets. 
D) understate owners' equity. 
E) overstate revenue.

Question 4

Which of the following is a distinguishing feature of a contra account?

Accepted Answer

A) If a contra account has a credit balance,then its companion account will usually have a debit balance. 
B) If a contra account has a credit balance,then its companion account will usually have a credit balance. 
C) A contra account usually has a dollar balance larger than its companion account. 
D) Contra accounts are found only in the liability section of the balance sheet. 
E) Contra accounts do not follow generally accepted accounting principles,while their companion accounts do follow generally accepted accounting principles. 
A) If a contra account has a credit balance,then its companion account will usually have a debit balance. 
B) If a contra account has a credit balance,then its companion account will usually have a credit balance. 
C) A contra account usually has a dollar balance larger than its companion account. 
D) Contra accounts are found only in the liability section of the balance sheet. 
E) Contra accounts do not follow generally accepted accounting principles,while their companion accounts do follow generally accepted accounting principles.

Question 5

A trial balance proves the equality of the total debits and total credits of the accounts listed.

Accepted Answer

A) True 
 B)False

Question 6

Darla Documentation,paid $1,900 to the local newspaper for advertising that will begin in 30 days and continue for the following 6 weeks.How would Darla Documentation record this transaction?

Accepted Answer

A) Debit Cash and credit Advertising Expense for $1,900 
B) Debit Prepaid Advertising and credit Advertising Expense for $1,900 
C) Debit Advertising Expense and credit Prepaid Advertising for $1,900 
D) Debit Cash and credit Prepaid Advertising for $1,900 
E) Debit Prepaid Advertising and credit Cash for $1,900 
A) Debit Cash and credit Advertising Expense for $1,900 
B) Debit Prepaid Advertising and credit Advertising Expense for $1,900 
C) Debit Advertising Expense and credit Prepaid Advertising for $1,900 
D) Debit Cash and credit Prepaid Advertising for $1,900 
E) Debit Prepaid Advertising and credit Cash for $1,900

Question 7

Posting is the process of transferring amounts from the ledger to the financial statements.

Accepted Answer

A) True 
 B)False

Question 8

Prepare the journal entries for each of the six transactions depicted in the following T-accounts,along with a brief explanation as to the nature of the transaction.

Accepted Answer

The answer of Prepare the journal entries for each of...

Question 9

A compound entry is when two or more journal entries are made.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true regarding accounting errors?

Accepted Answer

A) Only the income statement of the second period is affected. 
B) Only the balance sheet of the first period is affected. 
C) Errors in the current period may be offset by errors in the next accounting period. 
D) Only auditors can change them. 
E) Because they reverse,it is not necessary to do anything after the fact. 
A) Only the income statement of the second period is affected. 
B) Only the balance sheet of the first period is affected. 
C) Errors in the current period may be offset by errors in the next accounting period. 
D) Only auditors can change them. 
E) Because they reverse,it is not necessary to do anything after the fact.

Question 11

Given the following account balances for Nelson Communications,prepare a trial balance for March 31,2012.
 $\begin{array}{ll}
\text { Wage Expense } & 19,000 \
\text { Paid-in Capital } & \$ 51,000 \
\text { Cost of Goods Sold } & 21,000 \
\text { Prepaid Rent } & 500 \
\text { Wages Payable } & 2,000 \
\text { Accounts Receivable } & 9,000 \
\text { Sales } & 49,000 \
\text { Equipment } & 64,000 \
\text { Cash } & 6,000 \
\text { Accounts Payable } & 8,000 \
\text { Retained Earnings } & 17,500 \
\text { Rent Expense } & 2,000 \
\text { Merchandise Inventory } & 11,000 \
\text { Accum. Depreciation, Equipment } & 5,000
\end{array}$

Accepted Answer

None

Question 12

Not recognizing depreciation expense in a given month will

Accepted Answer

A) understate total assets. 
B) understate total revenues. 
C) overstate total liabilities. 
D) overstate net income. 
E) have no effect since this is a temporary error. 
A) understate total assets. 
B) understate total revenues. 
C) overstate total liabilities. 
D) overstate net income. 
E) have no effect since this is a temporary error.

Question 13

Small firms use computer software systems such as ________ to process accounting information quickly and efficiently.

Accepted Answer

A) ERP 
B) Oracle 
C) SAP 
D) QuickBooks 
E) H & R Block Tax Filer 
A) ERP 
B) Oracle 
C) SAP 
D) QuickBooks 
E) H & R Block Tax Filer

Question 14

Some errors are counterbalanced by off-setting errors in the ordinary bookkeeping process in the next period.Such errors misstate net income in both periods.

Accepted Answer

A) True 
 B)False

Question 15

T-accounts focus on account balances while journal entries focus on transactions.

Accepted Answer

A) True 
 B)False

Question 16

The purchase of office supplies on account would include a debit to accounts payable and a credit to office supplies.

Accepted Answer

A) True 
 B)False

Question 17

The journal entry to acquire equipment costing $30,000 with a $12,000 down payment and a note issued for the difference would include a

Accepted Answer

A) debit to Cash for $18,000 and a credit to Equipment for $30,000. 
B) debit to Equipment for $30,000 and a credit to Notes Payable for $12,000. 
C) debit to Equipment for $30,000,credit to Notes Payable for $18,000,and a credit to Cash for $12,000. 
D) debit to Equipment for $30,000,credit to Notes Payable for $12,000,and a credit to Cash for $18,000. 
E) debit to Equipment for $30,000 and a credit to Cash for $30,000. 
A) debit to Cash for $18,000 and a credit to Equipment for $30,000. 
B) debit to Equipment for $30,000 and a credit to Notes Payable for $12,000. 
C) debit to Equipment for $30,000,credit to Notes Payable for $18,000,and a credit to Cash for $12,000. 
D) debit to Equipment for $30,000,credit to Notes Payable for $12,000,and a credit to Cash for $18,000. 
E) debit to Equipment for $30,000 and a credit to Cash for $30,000.

Question 18

Negative numbers are never used in the journal or the ledger; the effect on the account is conveyed by the side on which the number appears.

Accepted Answer

A) True 
 B)False

Question 19

Harry Chull purchased supplies from Party Supplies Company on August 14,2012 for $540 cash.Party Supplies Company purchased the supplies for $75 on August 1,2012.What steps must Party Supplies Company follow to record the sale to Harry Chull? After listing the step,describe in detail the specific transaction Party Supplies Company is recording.

Accepted Answer

1.Transaction documentation: Party Suppl

Question 20

The posting reference number in the general journal is obtained from:

Accepted Answer

A) source documents. 
B) the account number for each account posted to the ledger. 
C) the transaction amount. 
D) the Income Summary account. 
E) the normal balance in each account. 
A) source documents. 
B) the account number for each account posted to the ledger. 
C) the transaction amount. 
D) the Income Summary account. 
E) the normal balance in each account.

If the credit portion of a journal entry is posted but the debit side is not,liabilities will always be overstated.

Holand,Inc.,determines that depreciation amounts to $900 for the period.The entry includes a

Failure to record depreciation at year-end will

Which of the following is a distinguishing feature of a contra account?

A trial balance proves the equality of the total debits and total credits of the accounts listed.

Darla Documentation,paid $1,900 to the local newspaper for advertising that will begin in 30 days and continue for the following 6 weeks.How would Darla Documentation record this transaction?

Posting is the process of transferring amounts from the ledger to the financial statements.

Prepare the journal entries for each of the six transactions depicted in the following T-accounts,along with a brief explanation as to the nature of the transaction.

A compound entry is when two or more journal entries are made.

Which of the following is true regarding accounting errors?

Not recognizing depreciation expense in a given month will

Small firms use computer software systems such as ________ to process accounting information quickly and efficiently.

Some errors are counterbalanced by off-setting errors in the ordinary bookkeeping process in the next period.Such errors misstate net income in both periods.

T-accounts focus on account balances while journal entries focus on transactions.

The purchase of office supplies on account would include a debit to accounts payable and a credit to office supplies.

The journal entry to acquire equipment costing $30,000 with a $12,000 down payment and a note issued for the difference would include a

Negative numbers are never used in the journal or the ledger; the effect on the account is conveyed by the side on which the number appears.

The posting reference number in the general journal is obtained from:

Accounting: the Language of Business

Measuring Income to Assess Performance

Accrual Accounting and Financial Statements

Statement of Cash Flows

Accounting for Sales

Inventories and Cost of Goods Sold

Long-Lived Assets

Liabilities and Interest

Stockholders Equity

Intercorporate Investments and Consolidations

Financial Statement Analysis

Filters

Exam 3: Recording Transactions

If the credit portion of a journal entry is posted but the debit side is not,liabilities will always be overstated.

Holand,Inc.,determines that depreciation amounts to $900 for the period.The entry includes a

Failure to record depreciation at year-end will

Which of the following is a distinguishing feature of a contra account?

A trial balance proves the equality of the total debits and total credits of the accounts listed.

Darla Documentation,paid $1,900 to the local newspaper for advertising that will begin in 30 days and continue for the following 6 weeks.How would Darla Documentation record this transaction?

Posting is the process of transferring amounts from the ledger to the financial statements.

Prepare the journal entries for each of the six transactions depicted in the following T-accounts,along with a brief explanation as to the nature of the transaction.

A compound entry is when two or more journal entries are made.

Which of the following is true regarding accounting errors?

Not recognizing depreciation expense in a given month will

Small firms use computer software systems such as ________ to process accounting information quickly and efficiently.

Some errors are counterbalanced by off-setting errors in the ordinary bookkeeping process in the next period.Such errors misstate net income in both periods.

T-accounts focus on account balances while journal entries focus on transactions.

The purchase of office supplies on account would include a debit to accounts payable and a credit to office supplies.

The journal entry to acquire equipment costing $30,000 with a $12,000 down payment and a note issued for the difference would include a

Negative numbers are never used in the journal or the ledger; the effect on the account is conveyed by the side on which the number appears.

The posting reference number in the general journal is obtained from:

Accounting: the Language of Business

Measuring Income to Assess Performance

Accrual Accounting and Financial Statements

Statement of Cash Flows

Accounting for Sales

Inventories and Cost of Goods Sold

Long-Lived Assets

Liabilities and Interest

Stockholders Equity

Intercorporate Investments and Consolidations

Financial Statement Analysis

Filters