Question 1

A double-entry accounting system is an accounting system:

Accepted Answer

A) That records each transaction twice. 
B) That records the effect of each transaction in at least two accounts with equal debits and credits. 
C) In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. 
D) That allows total credits to be greater than total debits. 
E) That allows total debits to be greater than total credits. 
A) That records each transaction twice. 
B) That records the effect of each transaction in at least two accounts with equal debits and credits. 
C) In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. 
D) That allows total credits to be greater than total debits. 
E) That allows total debits to be greater than total credits.

Question 2

A $130 credit to Supplies was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Accepted Answer

A) Supplies,understated $130; Fees Earned,overstated $130. 
B) Supplies,understated $260; Fees Earned,overstated $130. 
C) Supplies,overstated $130; Fees Earned,overstated $130. 
D) Supplies,overstated $130; Fees Earned,understated $130. 
E) Supplies,overstated $260; Fees Earned,understated $130. 
A) Supplies,understated $130; Fees Earned,overstated $130. 
B) Supplies,understated $260; Fees Earned,overstated $130. 
C) Supplies,overstated $130; Fees Earned,overstated $130. 
D) Supplies,overstated $130; Fees Earned,understated $130. 
E) Supplies,overstated $260; Fees Earned,understated $130.

Question 3

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

Accepted Answer

A) Accounts Payable; Cash; Supplies. 
B) Unearned Revenue; Accounts Payable; Dividends. 
C) Building; Prepaid Insurance; Supplies Expense. 
D) Cash; Prepaid Insurance; Equipment. 
E) Notes Payable; Cash; Dividends. 
A) Accounts Payable; Cash; Supplies. 
B) Unearned Revenue; Accounts Payable; Dividends. 
C) Building; Prepaid Insurance; Supplies Expense. 
D) Cash; Prepaid Insurance; Equipment. 
E) Notes Payable; Cash; Dividends.

Question 4

A debit:

Accepted Answer

A) Always increases an account. 
B) Is the right-hand side of a T-account. 
C) Always decreases an account. 
D) Is the left-hand side of a T-account. 
E) Always increases liability accounts. 
A) Always increases an account. 
B) Is the right-hand side of a T-account. 
C) Always decreases an account. 
D) Is the left-hand side of a T-account. 
E) Always increases liability accounts.

Question 5

The ________ is a collection of all accounts and their balances.

Accepted Answer

general le

Question 6

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):

Accepted Answer

A) Account. 
B) Trial balance. 
C) Journal. 
D) T-account. 
E) Balance column account. 
A) Account. 
B) Trial balance. 
C) Journal. 
D) T-account. 
E) Balance column account.

Question 7

Ted Catering received $800 cash in advance from a customer for catering services to be provided in three months.Determine the general journal entry that Ted Catering will make to record the cash receipt.Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 8

Match between columns
                        Premises: Double-entry accounting
Credit
Journal
Debit
Account
Trial balance
Posting
Ledger
Source documents
T-account

Accepted Answer

The Answer of A list of accounts and their balances is...

Question 9

A credit is used to record an increase in all of the following accounts except:

Accepted Answer

A) Accounts Payable 
B) Service Revenue 
C) Unearned Revenue 
D) Wages Expense 
E) Common Stock 
A) Accounts Payable 
B) Service Revenue 
C) Unearned Revenue 
D) Wages Expense 
E) Common Stock

Question 10

Debit means increase and credit means decrease for all accounts.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

On February 5,Kirkland Co.purchased equipment that cost $35,000.The firm paid $5,000 cash and signed a long-term note payable for $30,000.Show the general journal entry to record this transaction.

Accepted Answer

The answer of On February 5,Kirkland Co.purchased equipment that cost...

Question 13

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Accepted Answer

The answer of For each of the accounts in the...

Question 14

Review the transactions below and identify with an "X" those that would be posted as a credit in the ledger (The first one has been done for you):
__X_1.Salary Payable was increased.
____ 2.Cash was decreased
____ 3.Equipment was increased
____ 4.Common Stock was increased
____ 5.Salaries Expense was increased
____ 6.Accounts Receivable was decreased
____ 7.Unearned Revenue was increased
____ 8.Dividends was increased
____ 9.Supplies was increased
____ 10.Building was increased
____ 11.Utilities Expense was increased
____ 12.Service Revenue was increased

Accepted Answer

__X_ 1.Salary Payable was increased.
__X

Question 15

A credit entry:

Accepted Answer

A) Increases asset and expense accounts,and decreases liability,common stock,and revenue accounts. 
B) Always decreases an account. 
C) Decreases asset and expense accounts,and increases liability,common stock,and revenue accounts. 
D) Is recorded on the left side of a T-account. 
E) Always increases an account. 
A) Increases asset and expense accounts,and decreases liability,common stock,and revenue accounts. 
B) Always decreases an account. 
C) Decreases asset and expense accounts,and increases liability,common stock,and revenue accounts. 
D) Is recorded on the left side of a T-account. 
E) Always increases an account.

Question 16

Unearned revenues are classified as liabilities.

Accepted Answer

A) True 
 B)False

Question 17

Unearned revenues are generally:

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 common stock. 
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 common stock.

Question 18

A company paid $100 in cash dividends.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of A company paid $100 in cash dividends.Set...

Question 19

On December 3,the XFL Company paid $1,400 cash in salaries to employees.Prepare the general journal entry to record this transaction.

Accepted Answer

The answer of On December 3,the XFL Company paid $1,400...

Question 20

In a seller's accounting records,________ are promises of payment waiting to be received from customers.

Accepted Answer

The answer of In a seller's accounting records,________ are promises...

Exam 2: Accounting for Business Transactions

A double-entry accounting system is an accounting system:

A $130 credit to Supplies was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

A debit:

The ________ is a collection of all accounts and their balances.

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):

A credit is used to record an increase in all of the following accounts except:

Debit means increase and credit means decrease for all accounts.

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

On February 5,Kirkland Co.purchased equipment that cost $35,000.The firm paid $5,000 cash and signed a long-term note payable for $30,000.Show the general journal entry to record this transaction.

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

A credit entry:

Unearned revenues are classified as liabilities.

Unearned revenues are generally:

A company paid $100 in cash dividends.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

On December 3,the XFL Company paid $1,400 cash in salaries to employees.Prepare the general journal entry to record this transaction.

In a seller's accounting records,________ are promises of payment waiting to be received from customers.

Accounting in Business

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

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 Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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