Question 1

You decrease the Accounts Payable account on the ________side of its account.

Accepted Answer

The answer of You decrease the Accounts Payable account on...

Question 2

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Debits increase asset and expense accounts.

Accepted Answer

A) True 
 B)False

Question 5

On April 30,Victor Services had an Accounts Receivable balance of $18,000.During the month of May,total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

Accepted Answer

A)  $5,000. 
B)  $47,000. 
C)  $52,000. 
D)  $57,000. 
E)  $32,000. 
A)  $5,000. 
B)  $47,000. 
C)  $52,000. 
D)  $57,000. 
E)  $32,000.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Revenues always increase equity.

Accepted Answer

A) True 
 B)False

Question 8

Mary Martin,the sole stockholder of Martin Consulting,received a $2,000 dividend from the company.Identify the general journal entry below that Martin Consulting will make to record the transaction.

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Dividends } & 2,000 & \
\hline \text { Cash } & & 2,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Common Stock } & 2,000 & \
\hline \text { Cash } & & 2,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Dividends } & 2,000 & \
\hline \text { Common Stock } & & 2,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 2,000 & \
\hline \text { Common Stock } & & 2,000 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 2,000 & \
\hline \text { Dividends } & & 2,000 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Dividends } & 2,000 & \
\hline \text { Cash } & & 2,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Common Stock } & 2,000 & \
\hline \text { Cash } & & 2,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Dividends } & 2,000 & \
\hline \text { Common Stock } & & 2,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 2,000 & \
\hline \text { Common Stock } & & 2,000 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 2,000 & \
\hline \text { Dividends } & & 2,000 \
\hline
\end{array}$$

Question 9

At the beginning of January of the current year,Little Mikey's Catering ledger reflected a normal balance of $52,000 for accounts receivable.During January,the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500.Additionally,during January one customer paid Mikey $5,000 for services to be provided in the future.At the end of January,the balance in the accounts receivable account should be:

Accepted Answer

A)  $54,700. 
B)  $49,700. 
C)  $2,300. 
D)  $54,300. 
E)  $49,300. 
A)  $54,700. 
B)  $49,700. 
C)  $2,300. 
D)  $54,300. 
E)  $49,300.

Question 10

Mary Sunny began business as Sunny Law Firm on November 1.Record the following November transactions by making entries directly to the T-accounts provided.Then,prepare a trial balance,as of November 30.
a)Mary invested $15,000 cash and a law library valued at $6,000 in exchange for common stock.
b)Purchased $7,500 of office equipment from John Bronx on credit.
c)Completed legal work for a client and received $1,500 cash in full payment.
d)Paid John Bronx.$3,500 cash in partial settlement of the amount owed.
e)Completed $4,000 of legal work for a client on credit.
f)The firm paid $2,000 cash in dividends.
g)Received $2,500 cash as partial payment for the legal work completed for the client in (e).
h)Paid $2,500 cash for the legal secretary's salary.

Accepted Answer

@#IMG-DLM& Sunny Law Firm
Trial Balance
November 3

Question 11

At year-end,Henry Laundry Service noted the following errors in its trial balance:
1.It understated the total debits to the Cash account by $500 when computing the account balance.
2.A credit sale for $311 was recorded as a credit to the revenue account,but the offsetting debit was not posted.
3.A cash payment to a creditor for $2,600 was never recorded.
4.The $680 balance of the Prepaid Insurance account was listed in the credit column of the trial balance.
5.A $24,900 van purchase was recorded as a $24,090 debit to Equipment and a $24,090 credit to Notes Payable.
6.A purchase of office supplies for $150 was recorded as a debit to Office Equipment.The offsetting credit entry was correct.
7.An additional investment of $4,000 by the stockholder was recorded as a debit to Common Stock and as a credit to Cash.
8.The cash payment of the $510 utility bill for December was recorded (but not paid)twice.
9.The revenue account balance of $79,817 was listed on the trial balance as $97,817.
10.A $1,000 cash dividend was recorded as a $100 debit to Dividends and $100 credit to Cash.
143.
Using the form below,indicate whether each error would cause the trial balance to be out of balance,the amount of any imbalance,and whether a correcting journal entry is required.

Accepted Answer

The answer of At year-end,Henry Laundry Service noted the following...

Question 12

Explain the difference between a general ledger and a chart of accounts.

Accepted Answer

A ledger is a record containing all of t

Question 13

Match the following terms with the appropriate definition.
-Account balance

Accepted Answer

A) A record containing all accounts of a company and their balances. 
B) A written promise to pay a definite sum of money on a specified future date. 
C) The difference between total debits and total credits for an account including the beginning balance. 
D) An increase in an asset, dividend, and expense account, and a decrease in a liability, common stock, and revenue account; recorded on the left side of a T-account. 
E) A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.
F)An account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
G)The ratio of total liabilities to total assets; used to reflect the risk associated with the company's debts.
H)A list of all accounts used by a company and the identification number assigned to each account.
I)A decrease in an asset, dividend, and expense account, and an increase in a liability, common stock, and revenue account; recorded on the right side of a T-account.
J)A chronological record of each transaction in one place that shows debits and credits for each transaction. 
A) A record containing all accounts of a company and their balances. 
B) A written promise to pay a definite sum of money on a specified future date. 
C) The difference between total debits and total credits for an account including the beginning balance. 
D) An increase in an asset, dividend, and expense account, and a decrease in a liability, common stock, and revenue account; recorded on the left side of a T-account. 
E) A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.
F)An account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
G)The ratio of total liabilities to total assets; used to reflect the risk associated with the company's debts.
H)A list of all accounts used by a company and the identification number assigned to each account.
I)A decrease in an asset, dividend, and expense account, and an increase in a liability, common stock, and revenue account; recorded on the right side of a T-account.
J)A chronological record of each transaction in one place that shows debits and credits for each transaction.

Question 14

HH Consulting & Design provided $800 of consulting work and $100 of design work to the same client.It billed the client for the total amount and is expecting to collect from the customer next month.Which of the following general journal entries will HH Consulting & Design make to record this transaction?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Design Revenue } & 100 & \
\hline \text { Consulting Revenuse } & 800 & \
\hline \text { Accounts Receivable } & & 900 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Payable } & \text { 800 } & \
\hline \text { Design Revenue } & & 100 \
\hline \text { Consulting Revenue } & & 800 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Consulting Revenue } & 800 & \
\hline \text { Design Revenue } & 100 & \
\hline \text { Cash } & & 900 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 900 \
\hline \text { Consulting Revenue } & & 800 \
\hline \text { Design Revenue } & & 100 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Receivable } & 900 \
\hline \text { Consulting Revenue } & & 800 \
\hline \text { Design Revenue } & & 100 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Design Revenue } & 100 & \
\hline \text { Consulting Revenuse } & 800 & \
\hline \text { Accounts Receivable } & & 900 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Payable } & \text { 800 } & \
\hline \text { Design Revenue } & & 100 \
\hline \text { Consulting Revenue } & & 800 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Consulting Revenue } & 800 & \
\hline \text { Design Revenue } & 100 & \
\hline \text { Cash } & & 900 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 900 \
\hline \text { Consulting Revenue } & & 800 \
\hline \text { Design Revenue } & & 100 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Receivable } & 900 \
\hline \text { Consulting Revenue } & & 800 \
\hline \text { Design Revenue } & & 100 \
\hline
\end{array}$$

Question 15

An account's balance is the difference between the total debits and total credits for the account,including any beginning balance.

Accepted Answer

A) True 
 B)False

Question 16

An income statement is also called an earnings statement,a statement of operations or a profit and loss statement.

Accepted Answer

A) True 
 B)False

Question 17

Identify the account below that impacts the Equity of a business:

Accepted Answer

A)  Utilities Expense 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Cash 
E)  Unearned Revenue 
A)  Utilities Expense 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Cash 
E)  Unearned Revenue

Question 18

________ is the process of transferring journal entry information from the journal to the ledger.

Accepted Answer

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

Question 19

Preparation of a trial balance is the first step in processing a financial transaction.

Accepted Answer

A) True 
 B)False

Question 20

If a company provides services to a customer on credit,the company providing the service should credit Accounts Receivable.

Accepted Answer

A) True 
 B)False

You decrease the Accounts Payable account on the ________side of its account.

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

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

Debits increase asset and expense accounts.

On April 30,Victor Services had an Accounts Receivable balance of $18,000.During the month of May,total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

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

Revenues always increase equity.

Mary Martin,the sole stockholder of Martin Consulting,received a $2,000 dividend from the company.Identify the general journal entry below that Martin Consulting will make to record the transaction.

Explain the difference between a general ledger and a chart of accounts.

Match the following terms with the appropriate definition. -Account balance

An account's balance is the difference between the total debits and total credits for the account,including any beginning balance.

An income statement is also called an earnings statement,a statement of operations or a profit and loss statement.

Identify the account below that impacts the Equity of a business:

________ is the process of transferring journal entry information from the journal to the ledger.

Preparation of a trial balance is the first step in processing a financial transaction.

If a company provides services to a customer on credit,the company providing the service should credit Accounts Receivable.

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

Time Value of Money

Investments

Partnership Accounting

Filters

Exam 2: Analyzing for Business Transactions

You decrease the Accounts Payable account on the ________side of its account.

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

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

Debits increase asset and expense accounts.

On April 30,Victor Services had an Accounts Receivable balance of $18,000.During the month of May,total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

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

Revenues always increase equity.

Mary Martin,the sole stockholder of Martin Consulting,received a $2,000 dividend from the company.Identify the general journal entry below that Martin Consulting will make to record the transaction.

Explain the difference between a general ledger and a chart of accounts.

Match the following terms with the appropriate definition. -Account balance

An account's balance is the difference between the total debits and total credits for the account,including any beginning balance.

An income statement is also called an earnings statement,a statement of operations or a profit and loss statement.

Identify the account below that impacts the Equity of a business:

________ is the process of transferring journal entry information from the journal to the ledger.

Preparation of a trial balance is the first step in processing a financial transaction.

If a company provides services to a customer on credit,the company providing the service should credit Accounts Receivable.

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

Time Value of Money

Investments

Partnership Accounting

Filters