Question 1

Of the following accounts, the one that normally has a credit balance is:

Accepted Answer

A) Cash 
B) Office Equipment 
C) Sales Salaries Payable 
D) Dividends 
E) Sales Salaries Expense 
A) Cash 
B) Office Equipment 
C) Sales Salaries Payable 
D) Dividends 
E) Sales Salaries Expense C

Question 2

What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance?

Accepted Answer

A) $17,400 
B) $10,900 
C) $14,400 
D) $ 9,000 
E) $15,900 
A) $17,400 
B) $10,900 
C) $14,400 
D) $ 9,000 
E) $15,900 E

Question 3

An account used to record the owners' investments in the business is called:

Accepted Answer

A) Dividends 
B) Common Stock 
C) Revenue 
D) Expense 
E) Liability 
A) Dividends 
B) Common Stock 
C) Revenue 
D) Expense 
E) Liability B

Question 4

Misa Chien and Jennifer Green founded Nom Nom Truck.What are some accounting challenges they faced when starting their business?

Accepted Answer

They had to account for many a

Question 5

List the steps in processing transactions.

Accepted Answer

Business transactions and events are the

Question 6

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):

Accepted Answer

A) Journal 
B) Posting 
C) Trial balance 
D) Account 
E) Chart of accounts 
A) Journal 
B) Posting 
C) Trial balance 
D) Account 
E) Chart of accounts

Question 7

A $15 credit to Sales was posted as a $150 credit.By what amount is Sales in error?

Accepted Answer

A) $150 understated 
B) $135 overstated 
C) $150 overstated 
D) $15 understated 
E) $135 understated 
A) $150 understated 
B) $135 overstated 
C) $150 overstated 
D) $15 understated 
E) $135 understated

Question 8

Unearned revenues are classified as liabilities.

Accepted Answer

A) True 
 B)False

Question 9

A debit entry is always favorable.

Accepted Answer

A) True 
 B)False

Question 10

The balances for the accounts of Mike's Maintenance, Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.
 $\begin{array}{|l|r|l|r|}
\hline \text { Accounts payable } & \$ 6,500 & \text { Wages expense } & \$ 36,000 \
\hline \text { Accounts receivable } & 7,000 & \text { Rent expense } & 6,000 \
\hline \text { Cash } & ? & \text { Retained earnings } & 68,700 \
\hline \text { Maintenance supplies } & 1,200 & &  \
\hline \text { Building } & 125,000 & \text { Land } & 50,000\
\hline \text { Supplies expense } & 21,500 & \text { Unearned maintenance fees } & 4,000 \
\hline \text { Common stock } &50,000  \
\hline \text {Maintenance revenue}&175,000&\text { Dividends } & 48,000\
\hline
\end{array}$ Calculate the correct balance for Cash and prepare a trial balance.

Accepted Answer

None

Question 11

A debit is used to record:

Accepted Answer

A) A decrease in an asset account. 
B) A decrease in an expense account. 
C) An increase in a revenue account. 
D) An increase in the balance of common stock. 
E) A decrease in the balance of retained earnings. 
A) A decrease in an asset account. 
B) A decrease in an expense account. 
C) An increase in a revenue account. 
D) An increase in the balance of common stock. 
E) A decrease in the balance of retained earnings.

Question 12

A journal gives a complete record of each transaction in one place and shows the debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 13

Land and buildings are generally recorded in the same ledger account.

Accepted Answer

A) True 
 B)False

Question 14

Explain the difference between a general ledger and a chart of accounts.

Accepted Answer

A ledger is a record containing all of t

Question 15

Explain debits and credits and their role in the accounting system.

Accepted Answer

Debit refers to the left side of an acco

Question 16

The trial balance can serve as a replacement for the balance sheet, since debits must balance with credits.

Accepted Answer

A) True 
 B)False

Question 17

Vicki Lake is a computer consultant.Shown below are (a)several accounts in her ledger with each account preceded by an identification number and (b)several transactions completed by Lake.Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 18

Unearned revenue is classified as _______________ that is satisfied by delivering products or services in the future.

Accepted Answer

The answer of Unearned revenue is classified as _______________ that...

Question 19

A transaction that increases an asset and decreases a liability must also affect one or more other accounts.

Accepted Answer

A) True 
 B)False

Question 20

On April 30, Holden Company had an Accounts Receivable balance of $18,000.During the month of May, total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

Accepted Answer

A) $5,000 
B) $47,000 
C) $52,000 
D) $57,000 
E) $32,000 
A) $5,000 
B) $47,000 
C) $52,000 
D) $57,000 
E) $32,000

Of the following accounts, the one that normally has a credit balance is:

What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance?

An account used to record the owners' investments in the business is called:

Misa Chien and Jennifer Green founded Nom Nom Truck.What are some accounting challenges they faced when starting their business?

List the steps in processing transactions.

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):

A $15 credit to Sales was posted as a $150 credit.By what amount is Sales in error?

Unearned revenues are classified as liabilities.

A debit entry is always favorable.

A debit is used to record:

A journal gives a complete record of each transaction in one place and shows the debits and credits for each transaction.

Land and buildings are generally recorded in the same ledger account.

Explain the difference between a general ledger and a chart of accounts.

Explain debits and credits and their role in the accounting system.

The trial balance can serve as a replacement for the balance sheet, since debits must balance with credits.

Unearned revenue is classified as _______________ that is satisfied by delivering products or services in the future.

A transaction that increases an asset and decreases a liability must also affect one or more other accounts.

On April 30, Holden Company had an Accounts Receivable balance of $18,000.During the month of May, total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Accounting for Partnerships

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Exam 15: Basic Accounting for Transactions

Of the following accounts, the one that normally has a credit balance is:

What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance?

An account used to record the owners' investments in the business is called:

Misa Chien and Jennifer Green founded Nom Nom Truck.What are some accounting challenges they faced when starting their business?

List the steps in processing transactions.

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):

A $15 credit to Sales was posted as a $150 credit.By what amount is Sales in error?

Unearned revenues are classified as liabilities.

A debit entry is always favorable.

A debit is used to record:

A journal gives a complete record of each transaction in one place and shows the debits and credits for each transaction.

Land and buildings are generally recorded in the same ledger account.

Explain the difference between a general ledger and a chart of accounts.

Explain debits and credits and their role in the accounting system.

The trial balance can serve as a replacement for the balance sheet, since debits must balance with credits.

Unearned revenue is classified as _______________ that is satisfied by delivering products or services in the future.

A transaction that increases an asset and decreases a liability must also affect one or more other accounts.

On April 30, Holden Company had an Accounts Receivable balance of $18,000.During the month of May, total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Accounting for Partnerships

Filters