Question 1

A _______________ is a list of all the accounts used by a company and their identification codes.

Accepted Answer

The answer of A _______________ is a list of all...

Question 2

IFRS requires that companies report four financial statements with explanatory notes: balance sheet; income statement; statement of changes in equity, and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

The posting process is the link between the _______________ and the _____________.

Accepted Answer

The answer of The posting process is the link between...

Question 4

Increases in assets are _______________, while increases in liabilities are _______________.

Accepted Answer

The answer of Increases in assets are _______________, while increases...

Question 5

For each of the following errors, indicate on the table below the amount by which the trial balance will be out of balance and which trial balance column (debit or credit)will have the larger total as a result of the error.
a.$100 debit to Cash was debited to the Cash account twice.
b.$1,900 credit to Sales was posted as a $190 credit.
c.$5,000 debit to Office Equipment was debited to Office Supplies.
d.$625 debit to Prepaid Insurance was posted as a $62.50 debit.
e.$520 credit to Accounts Payable was not posted.
 $\begin{array}{|c|c|c|}
\hline \text { Error } & \begin{array}{c}
\text { Amount Out of } \
\text { Balance }
\end{array} & \begin{array}{c}
\text { Column Having } \
\text { Larger Total }
\end{array} \
\hline \text { a. } & \
\hline \text { b. } & \
\hline \text { c. } &  \
\hline \text { d. } & \
\hline \text { e. } &  \
\hline
\end{array}$

Accepted Answer

None

Question 6

The accounting process begins with:

Accepted Answer

A) Analysis of business transactions and events. 
B) Preparation of financial statements and other reports. 
C) Summarizing the recorded effects of business transactions. 
D) Presentation of financial information to decision-makers. 
E) Preparation of the trial balance. 
A) Analysis of business transactions and events. 
B) Preparation of financial statements and other reports. 
C) Summarizing the recorded effects of business transactions. 
D) Presentation of financial information to decision-makers. 
E) Preparation of the trial balance.

Question 7

Transactions are first recorded in the ledger.

Accepted Answer

A) True 
 B)False

Question 8

A credit is used to record:

Accepted Answer

A) An increase in an expense account. 
B) An increase in an asset account. 
C) An increase in an unearned revenue account. 
D) A decrease in a revenue account. 
E) A decrease to retained earnings. 
A) An increase in an expense account. 
B) An increase in an asset account. 
C) An increase in an unearned revenue account. 
D) A decrease in a revenue account. 
E) A decrease to retained earnings.

Question 9

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

Accepted Answer

A) True 
 B)False

Question 10

Of the following errors, which one will cause the trial balance to be out of balance?

Accepted Answer

A) A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense. 
B) A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable. 
C) A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash. 
D) A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash. 
E) An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash. 
A) A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense. 
B) A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable. 
C) A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash. 
D) A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash. 
E) An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.

Question 11

Generally, the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets, liabilities, equity, revenues, and expenses.

Accepted Answer

A) True 
 B)False

Question 12

What would be the appropriate entry for the following transaction? 
Bill Co.performed $5,200 in consulting services on account.

Accepted Answer

A) Credit to Cash, debit to Accounts Receivable. 
B) Debit to Service Revenue, debit to Cash. 
C) Debit to Accounts Receivable, credit to Cash. 
D) Debit to Service Revenue, credit to Cash. 
E) Debit to Accounts Receivable, credit to Service Revenue. 
A) Credit to Cash, debit to Accounts Receivable. 
B) Debit to Service Revenue, debit to Cash. 
C) Debit to Accounts Receivable, credit to Cash. 
D) Debit to Service Revenue, credit to Cash. 
E) Debit to Accounts Receivable, credit to Service Revenue.

Question 13

Another name for the balance sheet is the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 14

A column in journal and ledger accounts used to cross reference journal and ledger entries is the:

Accepted Answer

A) Account balance column 
B) Debit column 
C) Posting reference column 
D) Credit column 
E) Description column 
A) Account balance column 
B) Debit column 
C) Posting reference column 
D) Credit column 
E) Description column

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A company had the following account balances at year-end: Cash……………………………………… $30,000
Accounts receivable……………………… 32,000
Accounts payable………………………… 20,000
Fees earned…………………………………..65,000
Rent expense…………………………………15,000
Insurance expense……………………………..4,800
Supplies………………………………………..5,000
Common stock……………………………….5,000
Retained earnings………………………….....14,800
Dividends………………………………… 18,000
If all of the accounts have normal balances, what are the total debits on the trial balance?

Accepted Answer

A) $45,200 
B) $67,000 
C) $104,800 
D) $209,600 
E) $186,600 
A) $45,200 
B) $67,000 
C) $104,800 
D) $209,600 
E) $186,600

Question 17

Which of the following statements is incorrect?

Accepted Answer

A) The normal balance of accounts receivable is a debit. 
B) The normal balance of dividends is a debit. 
C) The normal balance of unearned revenues is a credit. 
D) The normal balance of an expense account is a credit. 
E) The normal balance of common stock is a credit. 
A) The normal balance of accounts receivable is a debit. 
B) The normal balance of dividends is a debit. 
C) The normal balance of unearned revenues is a credit. 
D) The normal balance of an expense account is a credit. 
E) The normal balance of common stock is a credit.

Question 18

Source documents include all of the following except:

Accepted Answer

A) Sales tickets 
B) Ledgers 
C) Checks 
D) Purchase orders 
E) Bank statements 
A) Sales tickets 
B) Ledgers 
C) Checks 
D) Purchase orders 
E) Bank statements

Question 19

On September 30, the Cash account of Value Company had a normal balance of $5,000.During September, the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Accepted Answer

A) $0 balance 
B) $4,300 debit balance 
C) $4,300 credit balance 
D) $5,700 debit balance 
E) $5,700 credit balance 
A) $0 balance 
B) $4,300 debit balance 
C) $4,300 credit balance 
D) $5,700 debit balance 
E) $5,700 credit balance

Question 20

A balance column account is:

Accepted Answer

A) An account entered on the balance sheet. 
B) An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted. 
C) An alternate name for the retained earnings account. 
D) An account used to record the transfers of assets from a business to its stockholders. 
E) A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction. 
A) An account entered on the balance sheet. 
B) An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted. 
C) An alternate name for the retained earnings account. 
D) An account used to record the transfers of assets from a business to its stockholders. 
E) A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.

A _______________ is a list of all the accounts used by a company and their identification codes.

IFRS requires that companies report four financial statements with explanatory notes: balance sheet; income statement; statement of changes in equity, and statement of cash flows.

The posting process is the link between the ___ and the _.

Increases in assets are _, while increases in liabilities are _.

The accounting process begins with:

Transactions are first recorded in the ledger.

A credit is used to record:

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

Of the following errors, which one will cause the trial balance to be out of balance?

Generally, the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets, liabilities, equity, revenues, and expenses.

What would be the appropriate entry for the following transaction? Bill Co.performed $5,200 in consulting services on account.

Another name for the balance sheet is the statement of financial position.

A column in journal and ledger accounts used to cross reference journal and ledger entries is the:

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

Which of the following statements is incorrect?

Source documents include all of the following except:

On September 30, the Cash account of Value Company had a normal balance of $5,000.During September, the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

A balance column account is:

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

A _______________ is a list of all the accounts used by a company and their identification codes.

IFRS requires that companies report four financial statements with explanatory notes: balance sheet; income statement; statement of changes in equity, and statement of cash flows.

The posting process is the link between the _______________ and the _____________.

Increases in assets are _______________, while increases in liabilities are _______________.

The accounting process begins with:

Transactions are first recorded in the ledger.

A credit is used to record:

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

Of the following errors, which one will cause the trial balance to be out of balance?

Generally, the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets, liabilities, equity, revenues, and expenses.

What would be the appropriate entry for the following transaction? Bill Co.performed $5,200 in consulting services on account.

Another name for the balance sheet is the statement of financial position.

A column in journal and ledger accounts used to cross reference journal and ledger entries is the:

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

Which of the following statements is incorrect?

Source documents include all of the following except:

On September 30, the Cash account of Value Company had a normal balance of $5,000.During September, the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

A balance column account is:

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

The posting process is the link between the ___ and the _.

Increases in assets are _, while increases in liabilities are _.