Question 1

Source documents:

Accepted Answer

A) Include the ledger. 
B) Are the origins of accounting information. 
C) Must be in electronic form. 
D) Are based on accounting entries. 
E) Include the chart of accounts. 
A) Include the ledger. 
B) Are the origins of accounting information. 
C) Must be in electronic form. 
D) Are based on accounting entries. 
E) Include the chart of accounts.

Question 2

Debit means the right-hand side of any account.

Accepted Answer

A) True 
 B)False

Question 3

Dolly Barton began Barton Office Services in October and during the month completed the following transactions:
a.Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock.
b.Paid $500 cash for an insurance premium covering the next 12 months.
c.Completed a word processing assignment for a customer and collected $1,000 cash.
d.Paid $200 cash for office supplies.
e.Paid $2,000 for October's rent.
Prepare journal entries to record the above transactions.Explanations are unnecessary.

Accepted Answer

a.
 @#IMG-DLM&_TB6311_00_TB6311_00_TB631

Question 4

Identify which of the following items would likely serve as a source document by marking an X in the appropriate column.The first one is done as an example.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 5

Other names for the income statement are earnings statement, statement of operations, or profit and loss statement.

Accepted Answer

A) True 
 B)False

Question 6

A debit is:

Accepted Answer

A) An increase in an account. 
B) The right-hand side of a T-account. 
C) A decrease in an account. 
D) The left-hand side of a T-account. 
E) An increase to a liability account. 
A) An increase in an account. 
B) The right-hand side of a T-account. 
C) A decrease in an account. 
D) The left-hand side of a T-account. 
E) An increase to a liability account.

Question 7

For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items?

Accepted Answer

A) The receipt contains coded information that the seller needs to prepare and analyze the trial balance. 
B) Sellers wish to ensure that the sale in question was rung up on the register in the first place. 
C) This is a legal requirement mandated by a federal law. 
D) The receipt is serving as a promissory note. 
E) To create an environment in which customers do not want to return items. 
A) The receipt contains coded information that the seller needs to prepare and analyze the trial balance. 
B) Sellers wish to ensure that the sale in question was rung up on the register in the first place. 
C) This is a legal requirement mandated by a federal law. 
D) The receipt is serving as a promissory note. 
E) To create an environment in which customers do not want to return items.

Question 8

Given the trial balance amounts below, compute net income.

Accepted Answer

A) $19,578 
B) $20,528 
C) $23,728 
D) $49,578 
E) $24,578 
A) $19,578 
B) $20,528 
C) $23,728 
D) $49,578 
E) $24,578

Question 9

What is total debits on this trial balance?

Accepted Answer

A) $291,340 
B) $106,964 
C) $199,152 
D) $193,390 
E) $203.152 
A) $291,340 
B) $106,964 
C) $199,152 
D) $193,390 
E) $203.152

Question 10

The balances for the accounts of Lance's Consulting Firm, Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.
$\begin{array}{lrlr}
\text { Accounts payable } & \$ 6,400 & \text { Wages expense } & \$ 35,000 \
\text { Accounts receivable } & 7,000 & \text { Rent expense } & 5,000 \
\text { Cash } & 10,000 & \text { Retained earnings } & 68,700 \
\text { Office supplies } & 1,000 & \text { Land } & 53,000 \
\text { Building } & 99,000 & \text { Unearned revenue } & 7,000 \
\text { Supplies expense } & 15,000 & \text { Dividends } & 20,000 \
\text { Consulting revenue } & 150,000 & \text { Common stock } & 12,900
\end{array}$
Calculate total assets.

Accepted Answer

$7,000 + 10,000 + 1,

Question 11

An account format that is similar to a T-account in that it has columns for debits and credits but that is different in that it has columns for transaction date, explanation, and the account balance is the ___________________________________.

Accepted Answer

balance co

Question 12

A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable.Assuming this journal entry was posted, what correcting entry (if any)is needed?

Accepted Answer

A) Debit Cash and credit Accounts Receivable for $72,000 each. 
B) Debit Cash and credit Accounts Receivable for $144,000 each. 
C) Credit Cash and debit Accounts Receivable for $72,000 each. 
D) Credit Cash and debit Accounts Receivable for $144,000 each. 
E) No correcting entry is needed for this transaction. 
A) Debit Cash and credit Accounts Receivable for $72,000 each. 
B) Debit Cash and credit Accounts Receivable for $144,000 each. 
C) Credit Cash and debit Accounts Receivable for $72,000 each. 
D) Credit Cash and debit Accounts Receivable for $144,000 each. 
E) No correcting entry is needed for this transaction.

Question 13

Explain the recording and posting processes.

Accepted Answer

Information from business transactions a

Question 14

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 credit 
B) $14,400 credit 
C) $14,400 debit 
D) $15,900 credit 
E) $15,900 debit 
A) $17,400 credit 
B) $14,400 credit 
C) $14,400 debit 
D) $15,900 credit 
E) $15,900 debit

Question 15

The record in which business transactions are first recorded is the:

Accepted Answer

A) Account balance 
B) Ledger 
C) General journal 
D) Trial balance 
E) Cash account 
A) Account balance 
B) Ledger 
C) General journal 
D) Trial balance 
E) Cash account

Question 16

Which of the following items would appear on the balance sheet?

Accepted Answer

A) Common stock, service revenue, retained earnings, accounts payable, and unearned revenue. 
B) Cash, supplies, prepaid rent, accounts receivable, office equipment, utilities expense, and shaving equipment. 
C) Common stock, cash, supplies, prepaid rent, retained earnings, accounts payable, accounts receivable, office equipment, unearned revenue, and shaving equipment. 
D) Service revenue and utilities expense. 
E) Service revenue, unearned revenue, and utilities expense. 
A) Common stock, service revenue, retained earnings, accounts payable, and unearned revenue. 
B) Cash, supplies, prepaid rent, accounts receivable, office equipment, utilities expense, and shaving equipment. 
C) Common stock, cash, supplies, prepaid rent, retained earnings, accounts payable, accounts receivable, office equipment, unearned revenue, and shaving equipment. 
D) Service revenue and utilities expense. 
E) Service revenue, unearned revenue, and utilities expense.

Question 17

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

Accepted Answer

A) Dividend account 
B) Common stock account 
C) Drawing account 
D) T-account 
E) Balance column sheet 
A) Dividend account 
B) Common stock account 
C) Drawing account 
D) T-account 
E) Balance column sheet

Question 18

Increases in liability accounts are recorded as debits.

Accepted Answer

A) True 
 B)False

Question 19

Krenz Car Care, which is owned and operated by Karl Krenz, began business as a corporation in September of the current year.Karl, a master mechanic, had no experience with keeping a set of books.As a result, Karl entered all of September's transactions directly to the ledger accounts.When he tried to locate a particular entry he found it to be confusing and time consuming.He has hired you to improve his accounting procedures.The accounts in his general ledger are as follows:

Prepare the general journal entries, in chronological order (a)through (e), from the T-account entries shown.Include a brief description of the probable nature of each transaction.

Accepted Answer

a.
 @#IMG-DLM&_TB6311_00_TB6311_00_TB631

Question 20

A ___________________ is a record containing all accounts for a company along with their balances.

Accepted Answer

general le

Source documents:

Debit means the right-hand side of any account.

Identify which of the following items would likely serve as a source document by marking an X in the appropriate column.The first one is done as an example.

Other names for the income statement are earnings statement, statement of operations, or profit and loss statement.

A debit is:

For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items?

Given the trial balance amounts below, compute net income.

What is total debits on this trial balance?

An account format that is similar to a T-account in that it has columns for debits and credits but that is different in that it has columns for transaction date, explanation, and the account balance is the ___________________________________.

A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable.Assuming this journal entry was posted, what correcting entry (if any)is needed?

Explain the recording and posting processes.

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

The record in which business transactions are first recorded is the:

Which of the following items would appear on the balance sheet?

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

Increases in liability accounts are recorded as debits.

A ___________________ is a record containing all accounts for a company along with their balances.

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

Exam 15: Basic Accounting for Transactions

Source documents:

Debit means the right-hand side of any account.

Identify which of the following items would likely serve as a source document by marking an X in the appropriate column.The first one is done as an example.

Other names for the income statement are earnings statement, statement of operations, or profit and loss statement.

A debit is:

For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items?

Given the trial balance amounts below, compute net income.

What is total debits on this trial balance?

An account format that is similar to a T-account in that it has columns for debits and credits but that is different in that it has columns for transaction date, explanation, and the account balance is the ___________________________________.

A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable.Assuming this journal entry was posted, what correcting entry (if any)is needed?

Explain the recording and posting processes.

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

The record in which business transactions are first recorded is the:

Which of the following items would appear on the balance sheet?

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

Increases in liability accounts are recorded as debits.

A ___________________ is a record containing all accounts for a company along with their balances.

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