Question 1

A ________ gives a complete record of each transaction in one place,and shows debits and credits for each transaction.

Accepted Answer

The answer of A ________ gives a complete record of...

Question 2

A company's chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

Accepted Answer

A) True 
 B)False

Question 3

The balance sheet reports the financial position of a company at a point in time.

Accepted Answer

A) True 
 B)False

Question 4

A business paid $100 cash to Charles Nice (the sole stockholder)for his personal use.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 business paid $100 cash to Charles...

Question 5

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 6

Identify by marking an X in the appropriate column,whether each of the following items would likely serve as a source document.The first one is done as an example
 $$\begin{array} { | c | c | c | c | } 
\hline & & \text { Yes } & \text { No } \
\hline \text { Ex. } & \text { Credit card } & & \text { X } \
\hline \text { a. } & \text { Credit card receipt } & & \
\hline \text { b. } & \text { Purchase order } & & \
\hline \text { c. } & \text { Invoice } & & \
\hline \text { d. } & \text { Balance sheet } & & \
\hline \text { e. } & \text { Bank statement } & & \
\hline \text { f. } & \text { Journal entry } & & \
\hline \text { g. } & \text { Telephone bill } & & \
\hline \text { h. } & \text { Employee earnings record } & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | c | c | c | c | } 
\

Question 7

A law firm collected $1,800 for work to be performed in the following month.Which of the following general journal entries will the firm make to record this transaction?

Accepted Answer

A)  Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800. 
B)  Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800. 
C)  Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800. 
D)  Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800. 
E)  Debit Cash, $1,800; credit Accounts Receivable, $1,800. 
A)  Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800. 
B)  Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800. 
C)  Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800. 
D)  Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800. 
E)  Debit Cash, $1,800; credit Accounts Receivable, $1,800.

Question 8

The heading on every financial statement lists the three W's-Who (the name of the business); What (the name of the statement); and Where (the organization's address).

Accepted Answer

A) True 
 B)False

Question 9

Able Graphics received a $400 utility bill for the current month's electricity.It is not due until the end of the next month which is when they intend to pay it.Which of the following general journal entries will Able Graphics make to record this transaction?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Utilities Expense } & 400 & \
\hline \text { Cash } & & 400 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 400 & \
\hline \text { Utilities Expense } & & 400 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | l | } 
\hline \text { Utilities Expense } & 400 & \
\hline \text { Accounts Payable } & & 400 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | l | } 
\hline \text { Accounts Payable } & 400 & \
\hline \text { Utilities Expense } & & 400 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | l | l | } 
\hline \text { No journal entry is required } & & \
\hline & & \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Utilities Expense } & 400 & \
\hline \text { Cash } & & 400 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 400 & \
\hline \text { Utilities Expense } & & 400 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | l | } 
\hline \text { Utilities Expense } & 400 & \
\hline \text { Accounts Payable } & & 400 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | l | } 
\hline \text { Accounts Payable } & 400 & \
\hline \text { Utilities Expense } & & 400 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | l | l | } 
\hline \text { No journal entry is required } & & \
\hline & & \
\hline
\end{array}$$

Question 10

If cash was incorrectly debited for $100 instead of correctly crediting it for $100,the cash account's balance will be overstated (too high).

Accepted Answer

A) True 
 B)False

Question 11

Identify the account used by businesses to record the transfer of assets from a business to its stockholders:

Accepted Answer

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

Question 12

If a company purchases equipment paying cash,the journal entry to record this transaction will include a debit to Cash.

Accepted Answer

A) True 
 B)False

Question 13

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS).
-Unearned Fees Revenues

Accepted Answer

A) BS 
B) IS 
A) BS 
B) IS

Question 14

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.
 $$\begin{array} { | l | l | l | } 
\hline \text { Account Title } & \text { Account Type } & \begin{array} { l } 
\text { Normal Balance } \
\text { (Debit or Credit) }
\end{array} \
\hline \text { a. Prepaid Insurance } & & \
\hline \text { b. Accounts Payable } & & \
\hline \text { c. Common Stock } & & \
\hline \text { d. Utilities Expense } & & \
\hline \text { e. Land } & & \
\hline \text { f. Services Revenue } & & \
\hline \text { g. Notes Receivable } & & \
\hline \text { h.dvertising Expense } \
\hline\text { i. Unearned Revenue } & & \
\hline \text {j. Service Revenue } & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | l | l | } 
\hlin

Question 15

ABC Catering received $800 cash from a customer for catering services to be provided next month.Given the choices below,determine the general journal entry that ABC 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)  $$\begin{array} { | l | r | r | } 
\hline \text { Unearned Catering Revenue } & \mathbf { 8 0 0 } & \
\hline \text { Catering Revenue } & & 800 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 800 & \
\hline \text { Accounts Receivable } & & 800 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 800 & \
\hline \text { Unearned Catering Revenue } & & 800 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 800 & \
\hline \text { Catering Revenue } & & 800 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Receivable } & 800 & \
\hline \text { Catering Revenue } & & 800 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Unearned Catering Revenue } & \mathbf { 8 0 0 } & \
\hline \text { Catering Revenue } & & 800 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 800 & \
\hline \text { Accounts Receivable } & & 800 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 800 & \
\hline \text { Unearned Catering Revenue } & & 800 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 800 & \
\hline \text { Catering Revenue } & & 800 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Receivable } & 800 & \
\hline \text { Catering Revenue } & & 800 \
\hline
\end{array}$$

Question 16

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS).
-Notes Receivable

Accepted Answer

A) BS 
B) IS 
A) BS 
B) IS

Question 17

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 18

Explain how accounts are used in recording information about a business's transactions.

Accepted Answer

Accounts are classified into three gener

Question 19

Prepaid accounts (also called prepaid expenses)are generally:

Accepted Answer

A)  Payments made for products and services that never expire. 
B)  Classified as liabilities on the balance sheet. 
C)  Decreases in equity. 
D)  Assets that represent prepayments of future expenses. 
E)  Promises of payments by customers. 
A)  Payments made for products and services that never expire. 
B)  Classified as liabilities on the balance sheet. 
C)  Decreases in equity. 
D)  Assets that represent prepayments of future expenses. 
E)  Promises of payments by customers.

Question 20

While in the process of posting from the journal to the ledger,a company failed to post a $500 debit to the Equipment account.The effect of this error will be that:

Accepted Answer

A)  The Equipment account balance will be overstated. 
B)  The trial balance will not balance. 
C)  The error will overstate the debits listed in the journal. 
D)  The total debits in the trial balance will be larger than the total credits. 
E)  The error will overstate the credits listed in the journal. 
A)  The Equipment account balance will be overstated. 
B)  The trial balance will not balance. 
C)  The error will overstate the debits listed in the journal. 
D)  The total debits in the trial balance will be larger than the total credits. 
E)  The error will overstate the credits listed in the journal.

A ________ gives a complete record of each transaction in one place,and shows debits and credits for each transaction.

A company's chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

The balance sheet reports the financial position of a company at a point in time.

A business paid $100 cash to Charles Nice (the sole stockholder)for his personal use.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

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

A law firm collected $1,800 for work to be performed in the following month.Which of the following general journal entries will the firm make to record this transaction?

The heading on every financial statement lists the three W's-Who (the name of the business); What (the name of the statement); and Where (the organization's address).

Able Graphics received a $400 utility bill for the current month's electricity.It is not due until the end of the next month which is when they intend to pay it.Which of the following general journal entries will Able Graphics make to record this transaction?

If cash was incorrectly debited for $100 instead of correctly crediting it for $100,the cash account's balance will be overstated (too high).

Identify the account used by businesses to record the transfer of assets from a business to its stockholders:

If a company purchases equipment paying cash,the journal entry to record this transaction will include a debit to Cash.

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS). -Unearned Fees Revenues

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS). -Notes Receivable

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

Explain how accounts are used in recording information about a business's transactions.

Prepaid accounts (also called prepaid expenses)are generally:

While in the process of posting from the journal to the ledger,a company failed to post a $500 debit to the Equipment account.The effect of this error will be that:

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

A ________ gives a complete record of each transaction in one place,and shows debits and credits for each transaction.

A company's chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

The balance sheet reports the financial position of a company at a point in time.

A business paid $100 cash to Charles Nice (the sole stockholder)for his personal use.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

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

A law firm collected $1,800 for work to be performed in the following month.Which of the following general journal entries will the firm make to record this transaction?

The heading on every financial statement lists the three W's-Who (the name of the business); What (the name of the statement); and Where (the organization's address).

Able Graphics received a $400 utility bill for the current month's electricity.It is not due until the end of the next month which is when they intend to pay it.Which of the following general journal entries will Able Graphics make to record this transaction?

If cash was incorrectly debited for $100 instead of correctly crediting it for $100,the cash account's balance will be overstated (too high).

Identify the account used by businesses to record the transfer of assets from a business to its stockholders:

If a company purchases equipment paying cash,the journal entry to record this transaction will include a debit to Cash.

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS). -Unearned Fees Revenues

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS). -Notes Receivable

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

Explain how accounts are used in recording information about a business's transactions.

Prepaid accounts (also called prepaid expenses)are generally:

While in the process of posting from the journal to the ledger,a company failed to post a $500 debit to the Equipment account.The effect of this error will be that:

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