Question 1

A business's source documents:

Accepted Answer

A) Include the ledger. 
B) Provide objective evidence that a transaction has taken place. 
C) Must be in electronic form. 
D) Are records of all increases and decreases in specific asset. 
E) Include the chart of accounts. 
A) Include the ledger. 
B) Provide objective evidence that a transaction has taken place. 
C) Must be in electronic form. 
D) Are records of all increases and decreases in specific asset. 
E) Include the chart of accounts.

Question 2

The posting process is the link between the ________ and the ________.

Accepted Answer

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

Question 3

Dividends paid to stockholders are not reported on a business's income statement.

Accepted Answer

A) True 
 B)False

Question 4

If insurance coverage for the next two years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

Accepted Answer

A) True 
 B)False

Question 5

A company provided $12,000 of consulting services and was immediately paid in cash by the customer.Identify the journal entry below that properly records this transaction.

Accepted Answer

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

Question 6

The debt ratio is calculated by dividing total assets by total liabilities.

Accepted Answer

A) True 
 B)False

Question 7

The issuance of common stock always decrease equity.

Accepted Answer

A) True 
 B)False

Question 8

Jay's Limo Services paid $300 cash to employees for work performed in the current period.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Accepted Answer

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

Question 9

The ________ is found by determining the difference between total debits and total credits for an account,including any beginning balance.

Accepted Answer

The answer of The ________ is found by determining the...

Question 10

On May 31,the Cash account of Tesla had a normal balance of $5,000.During May,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 May?

Accepted Answer

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

Question 11

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

Accepted Answer

A) Assets and expenses. 
B) Assets and revenues. 
C) Revenues and expenses. 
D) Liabilities and expenses. 
E) Liabilities and dividends. 
A) Assets and expenses. 
B) Assets and revenues. 
C) Revenues and expenses. 
D) Liabilities and expenses. 
E) Liabilities and dividends.

Question 12

Posting is the transfer of journal entry information to the ledger.

Accepted Answer

A) True 
 B)False

Question 13

Unearned revenue is a liability that is settled in the future when a company delivers its products or services.

Accepted Answer

A) True 
 B)False

Question 14

A debit entry always increases an account.

Accepted Answer

A) True 
 B)False

Question 15

Alejandro Consulting paid $2,500 cash for a 5-month insurance policy that begins on March 1.Given the choices below,determine the general journal entry that Alejandro Consulting will make to record the cash payment.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 16

Revenues always increase equity.

Accepted Answer

A) True 
 B)False

Question 17

The detail of individual revenue and expense accounts is reported on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

The answer of For each of the following accounts,(1)identify the...

Question 19

A record of the increases and decreases in a specific asset,liability,equity,revenue,or expense is known as 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 20

Adriana Graphic Design receives $1,500 from a client billed in a previous month for services provided.Which of the following general journal entries will Adriana Graphic Design make to record this transaction?

Accepted Answer

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

Exam 2: Accounting for Business Transactions

A business's source documents:

The posting process is the link between the ________ and the ________.

Dividends paid to stockholders are not reported on a business's income statement.

If insurance coverage for the next two years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

A company provided $12,000 of consulting services and was immediately paid in cash by the customer.Identify the journal entry below that properly records this transaction.

The debt ratio is calculated by dividing total assets by total liabilities.

The issuance of common stock always decrease equity.

Jay's Limo Services paid $300 cash to employees for work performed in the current period.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

The ________ is found by determining the difference between total debits and total credits for an account,including any beginning balance.

On May 31,the Cash account of Tesla had a normal balance of $5,000.During May,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 May?

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

Posting is the transfer of journal entry information to the ledger.

Unearned revenue is a liability that is settled in the future when a company delivers its products or services.

A debit entry always increases an account.

Revenues always increase equity.

The detail of individual revenue and expense accounts is reported on the balance sheet.

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

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

Adriana Graphic Design receives $1,500 from a client billed in a previous month for services provided.Which of the following general journal entries will Adriana Graphic Design make to record this transaction?

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

Filters

The posting process is the link between the and the .