Question 1

A trial balance is the listing of each account and its balance at a specific point in time.

Accepted Answer

A) True 
 B)False  True

Question 2

Monaco & Associates
Use the following five transactions for Monaco & Associates to answer the following question.
 Oct. 1$\quad $ Bills are sent to clients for services provided in September in the amount of $\$ 800$.

9$\quad $ Dravo Co. delivers office furniture $( \$ 1,060 )$ and office supplies $( \$ 160 )$ to Monaco leaving an invoice for $\$ 1,220$.

15 $\quad $Payment is made to Dravo Co. for the furniture and office supplies delivered on October 9 .

23$\quad $A bill for $\$ 430$ for electricity for the month of September is received and will be paid on its due date in November.

31 $\quad $Salaries of $\$ 850$ are paid to employees.
-See the transactions for Monaco & Associates. ?
The journal entry to record the October 23 transaction will include a credit of $430 to

Accepted Answer

A) Salaries Expense. 
B) Cash. 
C) Prepaid Expenses. 
D) Accounts Payable. 
A) Salaries Expense. 
B) Cash. 
C) Prepaid Expenses. 
D) Accounts Payable. D

Question 3

Credits are always on the _____________________ side of the T account.

Accepted Answer

right

Question 4

All of the following accounts have normal credit balances except

Accepted Answer

A) Investments. 
B) Common Stock (Capital Stock). 
C) Accounts Payable. 
D) Service Revenue. 
A) Investments. 
B) Common Stock (Capital Stock). 
C) Accounts Payable. 
D) Service Revenue.

Question 5

An internal or external event must be ____________________ to be recognized.

Accepted Answer

The answer of An internal or external event must be...

Question 6

Would errors made by a bookkeeper in recording journal entries and in posting journal entries to the general ledger be discovered by preparing a trial balance? Explain why or why not for both the journal entry errors and the posting errors.

Accepted Answer

If equal dollar amounts were recorded in

Question 7

All of the following events (transactions)would be identified from standard source documents except for

Accepted Answer

A) freight charges for merchandise purchased from suppliers. 
B) the amount to be paid to settle a lawsuit for discrimination in hiring employees. 
C) wages to be paid to hourly employees. 
D) commissions earned by sales employees. 
A) freight charges for merchandise purchased from suppliers. 
B) the amount to be paid to settle a lawsuit for discrimination in hiring employees. 
C) wages to be paid to hourly employees. 
D) commissions earned by sales employees.

Question 8

Monaco & Associates
Use the following five transactions for Monaco & Associates to answer the following question.
 Oct. 1$\quad $ Bills are sent to clients for services provided in September in the amount of $\$ 800$.

9$\quad $ Dravo Co. delivers office furniture $( \$ 1,060 )$ and office supplies $( \$ 160 )$ to Monaco leaving an invoice for $\$ 1,220$.

15 $\quad $Payment is made to Dravo Co. for the furniture and office supplies delivered on October 9 .

23$\quad $A bill for $\$ 430$ for electricity for the month of September is received and will be paid on its due date in November.

31 $\quad $Salaries of $\$ 850$ are paid to employees.
-See the transactions for Monaco & Associates. ?
The journal entry to record the October 9 transaction will include a credit of $1,220 to

Accepted Answer

A) Furniture and Supplies. 
B) Cash. 
C) Accounts Payable. 
D) Administrative Expenses. 
A) Furniture and Supplies. 
B) Cash. 
C) Accounts Payable. 
D) Administrative Expenses.

Question 9

If the company has an _________ from a client,then the client has an ________ to the company.

Accepted Answer

A) account receivable;account receivable 
B) account payable;account payable 
C) account receivable;account payable 
D) account payable;account receivable 
A) account receivable;account receivable 
B) account payable;account payable 
C) account receivable;account payable 
D) account payable;account receivable

Question 10

Owners of Tri-States Industries,Ralph and Maureen,are sent a dividend check from the company.For this transaction,what is the effect on the accounting equation for Tri-States Industries?

Accepted Answer

A) Assets decrease and stockholders' equity decreases. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities decrease and stockholders' equity increases. 
A) Assets decrease and stockholders' equity decreases. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities decrease and stockholders' equity increases.

Question 11

A T account for Cash cannot contain any credits.

Accepted Answer

A) True 
 B)False

Question 12

Hennigan Company
Use the five transactions below for Hennigan Rentals to answer the questions that follow.
 Dec. 1 $\quad $Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days.

8 $\quad $Hennigan accepts advance deposits for tool rentals of $\$ 75$.

15 $\quad $Hennigan receives a bill from Farmer's Electric Company for $\$ 150$. Payment is due in 30 days.

20 $\quad $Customers are charged $\$ 750$ by Hennigan for tool rentals. Payment is due from the customers in 30 days.

31$\quad $ Hennigan receives $\$ 500$ in payments from the customers that were billed for rentals on December 20.
-Refer to the transactions for Hennigan Rentals. ?
Based on the December 8 transaction,Hennigan will record which of the following in its accounting records?

Accepted Answer

A) A credit in Accounts Payable for $75 
B) A credit in Accounts Receivable for $75 
C) A debit in Accounts Payable for $75 
D) A debit in Accounts Receivable for $75 
A) A credit in Accounts Payable for $75 
B) A credit in Accounts Receivable for $75 
C) A debit in Accounts Payable for $75 
D) A debit in Accounts Receivable for $75

Question 13

How frequently should entries be posted from the journal to the ledger? How have computers improved the posting process?

Accepted Answer

There is no standard rule about the freq

Question 14

Which of the following statements is true?

Accepted Answer

A) If a debit entry is made to an account in the general journal,the same account will receive a credit entry when the amount is posted to the general ledger. 
B) If all transactions are correctly posted to the general ledger,the sum of the debit balances will be equal to the sum of the credit balances. 
C) Posting occurs when numbers in the general ledger accounts are transferred to the general journal. 
D) If the sum of the debit balances equals the sum of the credit balances,then there were no mistakes made in the posting process. 
A) If a debit entry is made to an account in the general journal,the same account will receive a credit entry when the amount is posted to the general ledger. 
B) If all transactions are correctly posted to the general ledger,the sum of the debit balances will be equal to the sum of the credit balances. 
C) Posting occurs when numbers in the general ledger accounts are transferred to the general journal. 
D) If the sum of the debit balances equals the sum of the credit balances,then there were no mistakes made in the posting process.

Question 15

Monaco & Associates
Use the following five transactions for Monaco & Associates to answer the following question.
 Oct. 1$\quad $ Bills are sent to clients for services provided in September in the amount of $\$ 800$.

9$\quad $ Dravo Co. delivers office furniture $( \$ 1,060 )$ and office supplies $( \$ 160 )$ to Monaco leaving an invoice for $\$ 1,220$.

15 $\quad $Payment is made to Dravo Co. for the furniture and office supplies delivered on October 9 .

23$\quad $A bill for $\$ 430$ for electricity for the month of September is received and will be paid on its due date in November.

31 $\quad $Salaries of $\$ 850$ are paid to employees.
-See the transactions for Monaco & Associates. ?
The journal entry to record the October 1 transaction will include a debit of $800 to

Accepted Answer

A) Sales Revenue. 
B) Accounts Receivable. 
C) Cash. 
D) Retained Earnings. 
A) Sales Revenue. 
B) Accounts Receivable. 
C) Cash. 
D) Retained Earnings.

Question 16

Payment is made for land purchased earlier on credit.For this transaction,identify the effect on the accounting equation.

Accepted Answer

A) Assets increase and liabilities increase. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities decrease and assets decrease. 
A) Assets increase and liabilities increase. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities decrease and assets decrease.

Question 17

Sunnyside Vacations has a $1,200 account receivable from John Smith.On September 18,John makes a partial payment of $1,100 to Sunnyside.The journal entry made on September 18 by Sunnyside to record this transaction includes

Accepted Answer

A) a debit to the Cash account of $1,150. 
B) a debit to the Accounts Receivable account of $1,150. 
C) a credit to the Accounts Receivable account of $1,100. 
D) a credit to the Accounts Receivable account of $1,050. 
A) a debit to the Cash account of $1,150. 
B) a debit to the Accounts Receivable account of $1,150. 
C) a credit to the Accounts Receivable account of $1,100. 
D) a credit to the Accounts Receivable account of $1,050.

Question 18

Dividends are not a(n)__________________ but a direct reduction of retained earnings.

Accepted Answer

The answer of Dividends are not a(n)__________________ but a direct...

Question 19

Explain what the chart of accounts is and how its numbering system works.

Accepted Answer

Companies need a way to organize the lar

Question 20

From an accounting perspective,what are source documents? Give examples of at least three source documents.

Accepted Answer

Source documents are the basis for recor

A trial balance is the listing of each account and its balance at a specific point in time.

Credits are always on the _____________________ side of the T account.

All of the following accounts have normal credit balances except

An internal or external event must be ____________________ to be recognized.

Would errors made by a bookkeeper in recording journal entries and in posting journal entries to the general ledger be discovered by preparing a trial balance? Explain why or why not for both the journal entry errors and the posting errors.

All of the following events (transactions)would be identified from standard source documents except for

If the company has an _ from a client,then the client has an to the company.

Owners of Tri-States Industries,Ralph and Maureen,are sent a dividend check from the company.For this transaction,what is the effect on the accounting equation for Tri-States Industries?

A T account for Cash cannot contain any credits.

How frequently should entries be posted from the journal to the ledger? How have computers improved the posting process?

Which of the following statements is true?

Payment is made for land purchased earlier on credit.For this transaction,identify the effect on the accounting equation.

Sunnyside Vacations has a $1,200 account receivable from John Smith.On September 18,John makes a partial payment of $1,100 to Sunnyside.The journal entry made on September 18 by Sunnyside to record this transaction includes

Dividends are not a(n)__________________ but a direct reduction of retained earnings.

Explain what the chart of accounts is and how its numbering system works.

From an accounting perspective,what are source documents? Give examples of at least three source documents.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 3: Processing Accounting Information

A trial balance is the listing of each account and its balance at a specific point in time.

Credits are always on the _____________________ side of the T account.

All of the following accounts have normal credit balances except

An internal or external event must be ____________________ to be recognized.

Would errors made by a bookkeeper in recording journal entries and in posting journal entries to the general ledger be discovered by preparing a trial balance? Explain why or why not for both the journal entry errors and the posting errors.

All of the following events (transactions)would be identified from standard source documents except for

If the company has an _________ from a client,then the client has an ________ to the company.

Owners of Tri-States Industries,Ralph and Maureen,are sent a dividend check from the company.For this transaction,what is the effect on the accounting equation for Tri-States Industries?

A T account for Cash cannot contain any credits.

How frequently should entries be posted from the journal to the ledger? How have computers improved the posting process?

Which of the following statements is true?

Payment is made for land purchased earlier on credit.For this transaction,identify the effect on the accounting equation.

Sunnyside Vacations has a $1,200 account receivable from John Smith.On September 18,John makes a partial payment of $1,100 to Sunnyside.The journal entry made on September 18 by Sunnyside to record this transaction includes

Dividends are not a(n)__________________ but a direct reduction of retained earnings.

Explain what the chart of accounts is and how its numbering system works.

From an accounting perspective,what are source documents? Give examples of at least three source documents.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

If the company has an _ from a client,then the client has an to the company.