Question 1

A company purchased Office Supplies for cash. This transaction increased assets and:

Accepted Answer

A) increased equity. 
B) increased liabilities. 
C) increased revenues. 
D) decreased assets. 
A) increased equity. 
B) increased liabilities. 
C) increased revenues. 
D) decreased assets. D

Question 2

A trial balance has which of the following features?

Accepted Answer

A) Totals for balance sheet accounts only 
B) Totals for income statement accounts only 
C) Totals for all accounts listed in the ledger 
D) Both A and B are correct 
A) Totals for balance sheet accounts only 
B) Totals for income statement accounts only 
C) Totals for all accounts listed in the ledger 
D) Both A and B are correct C

Question 3

Consider the following transactions: I. Borrowed cash on a note payable, $80,000
II. Provided services on account, $10,000
III. Received cash from a customer as payment on account, $8,000
IV. Received a utility bill, $1,200
Total liabilities would be:

Accepted Answer

A) $1,200. 
B) $81,200. 
C) $98,000. 
D) $80,000. 
A) $1,200. 
B) $81,200. 
C) $98,000. 
D) $80,000. B

Question 4

The proper order for the accounting process is:

Accepted Answer

A) posting, transaction occurs, journalizing. 
B) transaction occurs, posting, journalizing. 
C) transaction occurs, transaction analyzed, journalizing, and posting. 
D) transaction occurs, posting, transaction analyzed, journalizing. 
A) posting, transaction occurs, journalizing. 
B) transaction occurs, posting, journalizing. 
C) transaction occurs, transaction analyzed, journalizing, and posting. 
D) transaction occurs, posting, transaction analyzed, journalizing.

Question 5

ABC Company had a beginning cash balance of $10,000, received cash of $8,000 and ended the month with a cash balance of $6,000. Cash payments for the month

Accepted Answer

A) were $6,000. 
B) were $24,000. 
C) were $12,000. 
D) cannot be determined from the information given. 
A) were $6,000. 
B) were $24,000. 
C) were $12,000. 
D) cannot be determined from the information given.

Question 6

Consider the following transactions: I. Owners invested $8,000 cash to begin the business
II. Provided services for cash, $6,000
III. Provided services on account, $4,000
IV. Paid cash for expenses, $7,500
How much cash does the business have?

Accepted Answer

A) $ 2,500 
B) $ 4,500 
C) $ 6,500 
D) $10,500 
A) $ 2,500 
B) $ 4,500 
C) $ 6,500 
D) $10,500

Question 7

If Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash, what is the company's net income for the month?

Accepted Answer

A) $8,000 
B) $5,000 
C) $3,000 
D) None of the above 
A) $8,000 
B) $5,000 
C) $3,000 
D) None of the above

Question 8

Every business transaction involves both debits and credits.

Accepted Answer

A) True 
 B)False

Question 9

If the total debits and the total credits of a trial balance are not equal, the error could be due to:

Accepted Answer

A) recording the same transaction twice. 
B) recording both the debit and credit of the journal entry for the same incorrect amount. 
C) an error in determining an account balance. 
D) forgetting to record a transaction. 
A) recording the same transaction twice. 
B) recording both the debit and credit of the journal entry for the same incorrect amount. 
C) an error in determining an account balance. 
D) forgetting to record a transaction.

Question 10

Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. What is the amount of total assets?

Accepted Answer

A) $80,000 
B) $78,000 
C) $88,000 D None of the above 
A) $80,000 
B) $78,000 
C) $88,000 D None of the above

Question 11

The rules for recording accounting transactions do NOT include which of the following?

Accepted Answer

A) Every transaction's net amount on the left side of the equation must equal the net amount on the right side. 
B) Both sides of the accounting equation must be affected. 
C) Every transaction affects the financial statements of the business. 
D) Total assets must always equal total liabilities plus total equity. 
A) Every transaction's net amount on the left side of the equation must equal the net amount on the right side. 
B) Both sides of the accounting equation must be affected. 
C) Every transaction affects the financial statements of the business. 
D) Total assets must always equal total liabilities plus total equity.

Question 12

The accounts receivable account for James Rivers Inc. had a beginning balance of $6,000. During the month, the company received payments of $8,000 and additional accounts of $11,000. The ending balance in accounts receivable is _____ and is a ______.

Accepted Answer

A) $9,000, credit 
B) $9,000, debit 
C) $3,000, debit 
D) $3,000, credit 
A) $9,000, credit 
B) $9,000, debit 
C) $3,000, debit 
D) $3,000, credit

Question 13

Which of the following statements regarding T accounts is FALSE?

Accepted Answer

A) The account title appears at the top of the T account. 
B) The right side is the debit side. 
C) The right side is the credit side. 
D) T accounts are a useful tool in accounting. 
A) The account title appears at the top of the T account. 
B) The right side is the debit side. 
C) The right side is the credit side. 
D) T accounts are a useful tool in accounting.

Question 14

A chart of accounts is:

Accepted Answer

A) prepared as the first step in analyzing transactions. 
B) a source document. 
C) a list of all of the accounts of the organization. 
D) a list of all of the accounts of the organization and their related account numbers. 
A) prepared as the first step in analyzing transactions. 
B) a source document. 
C) a list of all of the accounts of the organization. 
D) a list of all of the accounts of the organization and their related account numbers.

Question 15

Which statement about a trial balance is NOT true?

Accepted Answer

A) The trial balance can be prepared at any time, but is generally prepared at the end of the accounting period. 
B) The trial balance is a list of all accounts with their balances. 
C) The trial balance lists the income statement accounts and their balances first and then the balance sheet accounts and their balances. 
D) The trial balance lists asset accounts and their balances first, then liability accounts and their balances, and then stockholders' equity accounts and their balances. 
A) The trial balance can be prepared at any time, but is generally prepared at the end of the accounting period. 
B) The trial balance is a list of all accounts with their balances. 
C) The trial balance lists the income statement accounts and their balances first and then the balance sheet accounts and their balances. 
D) The trial balance lists asset accounts and their balances first, then liability accounts and their balances, and then stockholders' equity accounts and their balances.

Question 16

A company paid cash for employee wages. This transaction:

Accepted Answer

A) increased cash and increased expenses. 
B) increased cash and decreased expenses. 
C) decreased cash and increased expenses. 
D) decreased cash and decreased revenues. 
A) increased cash and increased expenses. 
B) increased cash and decreased expenses. 
C) decreased cash and increased expenses. 
D) decreased cash and decreased revenues.

Question 17

Receiving a payment from a customer on account would:

Accepted Answer

A) increase stockholders' equity. 
B) have no effect on total assets. 
C) increase stockholders' equity 
D) decrease liabilities. 
A) increase stockholders' equity. 
B) have no effect on total assets. 
C) increase stockholders' equity 
D) decrease liabilities.

Question 18

Which of the following items would NOT be included in the journal entry for a transaction?

Accepted Answer

A) The source documents initiating the transaction 
B) The date the accounting transaction was entered 
C) The titles of the accounts debited 
D) The dollar amount credited 
A) The source documents initiating the transaction 
B) The date the accounting transaction was entered 
C) The titles of the accounts debited 
D) The dollar amount credited

Question 19

Which statement about the journal is NOT true?

Accepted Answer

A) The journal lists transactions in chronological order. 
B) The journal entry lists debits before credits. 
C) The journal entry shows a complete transaction in one place. 
D) The journal entry shows the balance in each account. 
A) The journal lists transactions in chronological order. 
B) The journal entry lists debits before credits. 
C) The journal entry shows a complete transaction in one place. 
D) The journal entry shows the balance in each account.

Question 20

Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. The amount of stockholders' equity at the end of the period is:

Accepted Answer

A) $60,000. 
B) $80,000. 
C) $140,000. 
D) none of the above. 
A) $60,000. 
B) $80,000. 
C) $140,000. 
D) none of the above.

A company purchased Office Supplies for cash. This transaction increased assets and:

A trial balance has which of the following features?

Consider the following transactions: I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200 Total liabilities would be:

The proper order for the accounting process is:

ABC Company had a beginning cash balance of $10,000, received cash of $8,000 and ended the month with a cash balance of $6,000. Cash payments for the month

Consider the following transactions: I. Owners invested $8,000 cash to begin the business II. Provided services for cash, $6,000 III. Provided services on account, $4,000 IV. Paid cash for expenses, $7,500 How much cash does the business have?

If Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash, what is the company's net income for the month?

Every business transaction involves both debits and credits.

If the total debits and the total credits of a trial balance are not equal, the error could be due to:

Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. What is the amount of total assets?

The rules for recording accounting transactions do NOT include which of the following?

The accounts receivable account for James Rivers Inc. had a beginning balance of $6,000. During the month, the company received payments of $8,000 and additional accounts of $11,000. The ending balance in accounts receivable is _ and is a __.

Which of the following statements regarding T accounts is FALSE?

A chart of accounts is:

Which statement about a trial balance is NOT true?

A company paid cash for employee wages. This transaction:

Receiving a payment from a customer on account would:

Which of the following items would NOT be included in the journal entry for a transaction?

Which statement about the journal is NOT true?

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory and Cost of Goods Sold

Plant Assets Intangibles

Liabilities

Stockholders Equity

Long-Term Investments International Operations

The Income Statement the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Transaction Analysis

A company purchased Office Supplies for cash. This transaction increased assets and:

A trial balance has which of the following features?

Consider the following transactions: I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200 Total liabilities would be:

The proper order for the accounting process is:

ABC Company had a beginning cash balance of $10,000, received cash of $8,000 and ended the month with a cash balance of $6,000. Cash payments for the month

Consider the following transactions: I. Owners invested $8,000 cash to begin the business II. Provided services for cash, $6,000 III. Provided services on account, $4,000 IV. Paid cash for expenses, $7,500 How much cash does the business have?

Every business transaction involves both debits and credits.

If the total debits and the total credits of a trial balance are not equal, the error could be due to:

Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. What is the amount of total assets?

The rules for recording accounting transactions do NOT include which of the following?

The accounts receivable account for James Rivers Inc. had a beginning balance of $6,000. During the month, the company received payments of $8,000 and additional accounts of $11,000. The ending balance in accounts receivable is _____ and is a ______.

Which of the following statements regarding T accounts is FALSE?

A chart of accounts is:

Which statement about a trial balance is NOT true?

A company paid cash for employee wages. This transaction:

Receiving a payment from a customer on account would:

Which of the following items would NOT be included in the journal entry for a transaction?

Which statement about the journal is NOT true?

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory and Cost of Goods Sold

Plant Assets Intangibles

Liabilities

Stockholders Equity

Long-Term Investments International Operations

The Income Statement the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

The accounts receivable account for James Rivers Inc. had a beginning balance of $6,000. During the month, the company received payments of $8,000 and additional accounts of $11,000. The ending balance in accounts receivable is _ and is a __.