Question 1

Which of the following statements is correct?

Accepted Answer

A) The left side of a T-account is the credit side. 
B) Debits decrease asset and expense accounts and increase liability, equity, and revenue accounts. 
C) The left side of a T-account is the debit side. 
D) Credits increase asset and expense accounts and decrease liability, equity, and revenue accounts. 
E) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction. 
A) The left side of a T-account is the credit side. 
B) Debits decrease asset and expense accounts and increase liability, equity, and revenue accounts. 
C) The left side of a T-account is the debit side. 
D) Credits increase asset and expense accounts and decrease liability, equity, and revenue accounts. 
E) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.

Question 2

The right side of a T-account is a(n):

Accepted Answer

A) Debit 
B) Increase 
C) Credit 
D) Decrease 
E) Account balance 
A) Debit 
B) Increase 
C) Credit 
D) Decrease 
E) Account balance

Question 3

The account used to record the transfers of assets from a business to its stockholders is:

Accepted Answer

A) A revenue account 
B) The dividends account 
C) Common stock account 
D) An expense account 
E) A liability account 
A) A revenue account 
B) The dividends account 
C) Common stock account 
D) An expense account 
E) A liability account

Question 4

Revenues and expenses are two categories of ____________________ accounts.

Accepted Answer

The answer of Revenues and expenses are two categories of...

Question 5

Hamilton Industries has total liabilities of $105 million and total assets of $350 million.Its debt ratio is 333.3%.

Accepted Answer

A) True 
 B)False

Question 6

Based on the following trial balance for Sal's Beauty Shop, prepare an income statement, statement of retained earnings and a balance sheet.Sal made no additional investments in the company during the year.
 $\begin{array}{c}
 \text {SAL'S BEAUTY SHOP  }\
 \text { Trial Balance }\
 \text {December 31  }\
\begin{array}{|l|r|r|}
\hline \text { Cash } & \$ 6,500 & \
\hline \text { Accounts receivable } & 475 & \
\hline \text { Beauty supplies } & 2,500 & \
\hline \text { Beauty shop equipment } & 17,000 & \
\hline \text { Accounts payable } & & \$ 745 \
\hline \text { Common stock } & & 10,000 \
\hline \text { Retained earnings } & & 11,155 \
\hline \text { Dividends } & 36,000 & \
\hline \text { Revenue earned } & & 72,000 \
\hline \text { Beauty supplies expense } & 3,425 & \
\hline \text { Rent expense } & 6,000 & \
\hline \text { Wages expense } & 22,000 & \
\hline \text { Totals } & \$ 93,900 & \$ 93,900 \
\hline
\end{array}\end{array}$

Accepted Answer

The answer of Based on the following trial balance for...

Question 7

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 8

The chart of accounts is a list of all the accounts used by a company and a corresponding identification number.

Accepted Answer

A) True 
 B)False

Question 9

The difference between total debits and total credits for an account, including any beginning balance, is the ________________________.

Accepted Answer

The answer of The difference between total debits and total...

Question 10

Which of the following formulas can be used to calculate the debt ratio?

Accepted Answer

A) Total equity/Total liabilities 
B) Total liabilities/Total equity 
C) Total liabilities/Total assets 
D) Total assets/Total liabilities 
E) Total equity/Total assets 
A) Total equity/Total liabilities 
B) Total liabilities/Total equity 
C) Total liabilities/Total assets 
D) Total assets/Total liabilities 
E) Total equity/Total assets

Question 11

Which of the following is a TRUE statement concerning a company's financial statements?

Accepted Answer

A) Balance sheet and income statement data combined contain the complete financial picture of a given company. 
B) A trial balance is another name for a balance sheet. 
C) Another name for the income statement is the earnings statement. 
D) Dividends paid to a company's shareholders are shown on the income statement. 
E) The balance sheet shows the financial position of a company for a period of time. 
A) Balance sheet and income statement data combined contain the complete financial picture of a given company. 
B) A trial balance is another name for a balance sheet. 
C) Another name for the income statement is the earnings statement. 
D) Dividends paid to a company's shareholders are shown on the income statement. 
E) The balance sheet shows the financial position of a company for a period of time.

Question 12

A company had total assets of $350,000; total liabilities of $101,500; and total equity of $248,500.Calculate its debt ratio.

Accepted Answer

$101,500/$

Question 13

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

Accepted Answer

A) $17,400 
B) $10,900 
C) $14,400 
D) $ 4,500 
E) $ 2,000 
A) $17,400 
B) $10,900 
C) $14,400 
D) $ 4,500 
E) $ 2,000

Question 14

Unearned revenues are:

Accepted Answer

A) Revenues that have been earned and received in cash. 
B) Revenues that have been earned but not yet collected in cash. 
C) Liabilities created when a customer pays in advance for products or services before the revenue is earned. 
D) Recorded as an asset in the accounting records. 
E) Increases to retained earnings. 
A) Revenues that have been earned and received in cash. 
B) Revenues that have been earned but not yet collected in cash. 
C) Liabilities created when a customer pays in advance for products or services before the revenue is earned. 
D) Recorded as an asset in the accounting records. 
E) Increases to retained earnings.

Question 15

Which of the following items would appear on the income statement?

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 16

Explain how accounts are used in recording information about transactions.

Accepted Answer

Accounts are classified into three gener

Question 17

An asset created by prepayment of an expense is:

Accepted Answer

A) Recorded as a debit to an unearned revenue account. 
B) Recorded as a debit to a prepaid expense account. 
C) Recorded as a credit to an unearned revenue account. 
D) Recorded as a credit to a prepaid expense account. 
E) Not recorded in the accounting records until the earnings process is complete. 
A) Recorded as a debit to an unearned revenue account. 
B) Recorded as a debit to a prepaid expense account. 
C) Recorded as a credit to an unearned revenue account. 
D) Recorded as a credit to a prepaid expense account. 
E) Not recorded in the accounting records until the earnings process is complete.

Question 18

_______________ is the process of transferring journal entry information to the ledger.

Accepted Answer

The answer of _______________ is the process of transferring journal...

Question 19

Which of the following is the appropriate journal entry if a company hires a new employee?

Accepted Answer

A) Debit to Cash, credit to Wages Revenue. 
B) No entry should be made. 
C) Debit to Wages Expense, credit to Cash. 
D) Debit to Cash, credit to Wages Expense. 
E) Debit to Wages Payable, credit to Wages Expense. 
A) Debit to Cash, credit to Wages Revenue. 
B) No entry should be made. 
C) Debit to Wages Expense, credit to Cash. 
D) Debit to Cash, credit to Wages Expense. 
E) Debit to Wages Payable, credit to Wages Expense.

Question 20

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year:
 $\begin{array}{|l|r|r|}
\hline & \text { Assets } & \text { Liabilities } \
\hline \text { Beginning of the year } & \$ 114,000 & \$ 68,000 \
\hline \text { End of the year } & 135,000 & 73,000 \
\hline
\end{array}$ If the owners invested an additional $12,000 in the business during the year, but no dividends were paid, what was the amount of net income earned by Josephine's Bakery during the current year?

Accepted Answer

Beginning owner's equity = $114,000 - $6

Which of the following statements is correct?

The right side of a T-account is a(n):

The account used to record the transfers of assets from a business to its stockholders is:

Revenues and expenses are two categories of ____________________ accounts.

Hamilton Industries has total liabilities of $105 million and total assets of $350 million.Its debt ratio is 333.3%.

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

The chart of accounts is a list of all the accounts used by a company and a corresponding identification number.

The difference between total debits and total credits for an account, including any beginning balance, is the ________________________.

Which of the following formulas can be used to calculate the debt ratio?

Which of the following is a TRUE statement concerning a company's financial statements?

A company had total assets of $350,000; total liabilities of $101,500; and total equity of $248,500.Calculate its debt ratio.

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

Unearned revenues are:

Which of the following items would appear on the income statement?

Explain how accounts are used in recording information about transactions.

An asset created by prepayment of an expense is:

_______________ is the process of transferring journal entry information to the ledger.

Which of the following is the appropriate journal entry if a company hires a new employee?

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

Which of the following statements is correct?

The right side of a T-account is a(n):

The account used to record the transfers of assets from a business to its stockholders is:

Revenues and expenses are two categories of ____________________ accounts.

Hamilton Industries has total liabilities of $105 million and total assets of $350 million.Its debt ratio is 333.3%.

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

The chart of accounts is a list of all the accounts used by a company and a corresponding identification number.

The difference between total debits and total credits for an account, including any beginning balance, is the ________________________.

Which of the following formulas can be used to calculate the debt ratio?

Which of the following is a TRUE statement concerning a company's financial statements?

A company had total assets of $350,000; total liabilities of $101,500; and total equity of $248,500.Calculate its debt ratio.

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

Unearned revenues are:

Which of the following items would appear on the income statement?

Explain how accounts are used in recording information about transactions.

An asset created by prepayment of an expense is:

_______________ is the process of transferring journal entry information to the ledger.

Which of the following is the appropriate journal entry if a company hires a new employee?

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