Question 1

If debits equal credits in a trial balance,then all entries were correctly posted to the accounts.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following will not cause a trial balance to be out of balance?

Accepted Answer

A) The balance for an account is incorrectly computed. 
B) A debit entry is posted as a credit. 
C) A credit entry is posted to the wrong account as a credit. 
D) An account is accidentally omitted from the trial balance. 
A) The balance for an account is incorrectly computed. 
B) A debit entry is posted as a credit. 
C) A credit entry is posted to the wrong account as a credit. 
D) An account is accidentally omitted from the trial balance.

Question 3

A trial balance is a financial statement.

Accepted Answer

A) True 
 B)False

Question 4

From an accounting perspective,explain how an external event differs from an internal event and give an example of each.

Accepted Answer

Both external and internal events affect

Question 5

The normal balance of revenue is a(n)____________________.

Accepted Answer

The answer of The normal balance of revenue is a(n)____________________....

Question 6

Given a current ratio of 5 to 1,what is the effect of paying an accounts payable to a supplier?

Accepted Answer

A) The current ratio would increase. 
B) The current ratio would decrease. 
C) The current ratio would remain the same. 
D) The effect of the current ratio cannot be determined. 
A) The current ratio would increase. 
B) The current ratio would decrease. 
C) The current ratio would remain the same. 
D) The effect of the current ratio cannot be determined.

Question 7

All of the following are external events (transactions)except for a department store

Accepted Answer

A) moving goods from the stock-room to the retail floor for sale. 
B) running ads in a local newspaper. 
C) purchasing merchandise from a clothing manufacturer. 
D) selling clothing to customers on credit. 
A) moving goods from the stock-room to the retail floor for sale. 
B) running ads in a local newspaper. 
C) purchasing merchandise from a clothing manufacturer. 
D) selling clothing to customers on credit.

Question 8

Only events that can be measured will be reflected in the journal entries.

Accepted Answer

A) True 
 B)False

Question 9

A bill is received for electric service;the charge for the electricity is recorded,but payment will be made later.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 10

A(n)________________________ is a list of each account and its balance at a specific point in time.

Accepted Answer

trial bala

Question 11

During November,ABC,Inc.purchased office supplies for cash.The supplies will be used in November.What effect does this purchase transaction have on the accounting equation?

Accepted Answer

A) Assets increase and stockholders' equity decreases. 
B) Assets increase and liabilities increase. 
C) Assets decrease and liabilities decrease. 
D) There is no effect on the accounting equation as one asset account increases while another asset account decreases. 
A) Assets increase and stockholders' equity decreases. 
B) Assets increase and liabilities increase. 
C) Assets decrease and liabilities decrease. 
D) There is no effect on the accounting equation as one asset account increases while another asset account decreases.

Question 12

One effect on the accounting equation when a firm lends money is that

Accepted Answer

A) stockholders' equity decreases. 
B) liabilities decrease. 
C) liabilities increase. 
D) total assets remain the same. 
A) stockholders' equity decreases. 
B) liabilities decrease. 
C) liabilities increase. 
D) total assets remain the same.

Question 13

The left or debit side of a liability account is used to record ____________________.

Accepted Answer

The answer of The left or debit side of a...

Question 14

Prepare the journal entry to record each of the following independent transactions. (Use the number of the transaction in place of a date for identification purposes.)
1. Sale of capital stock in exchange for a parcel of land; the land is appraised at $75,000.
2. Cash payment of $3,400 in salaries and wages.
3. Payment of open account in the amount of $850.
4. Issuance of a promissory note for $2,750 cash.
5. Collections on account for $689.
Collections on account for $689.

Accepted Answer

None

Question 15

Several events are listed below.Indicate whether each event is an external event that should be recorded as a transaction,an internal event that should be recorded as a transaction,or an event that should not be recorded.Use the following identification codes for your answers:
E-External event to be recorded as a transaction
I-Internal event to be recorded as a transaction
NR-An event that should NOT be recorded

Accepted Answer

The answer of Several events are listed below.Indicate whether each...

Question 16

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 31 transaction will include a credit to

Accepted Answer

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

Question 17

Which of the following events (transactions)is an internal event for a business entity?

Accepted Answer

A) An accountant provides services for clients. 
B) An accountant purchases computer equipment to maintain business records and prepare legal documents. 
C) An accountant receives cash payments from clients for services performed. 
D) Periodically,the historical cost of the computer equipment used by an accountant is recorded as depreciation expenses. 
A) An accountant provides services for clients. 
B) An accountant purchases computer equipment to maintain business records and prepare legal documents. 
C) An accountant receives cash payments from clients for services performed. 
D) Periodically,the historical cost of the computer equipment used by an accountant is recorded as depreciation expenses.

Question 18

Four journal entries are presented below.Write an explanation for each entry in the space provided below the entry.
 A)
$\begin{array}{lcc}
\text { Cash } & 12,200 & \
\text { Service Revenue } & & 12,200
\end{array}$

B) $\begin{array}{llr}
  \text {  Accounts Receivable } &17,500\
 \text {Service Revenue  } &&17,500\
\end{array}$

C) 
$\begin{array}{lcl}
\text { Cash }& 16,900 \
\text { Accounts Receivable }  & & 16,900
\end{array}$

D)
$\begin{array}{lll}
\text { Cash } & 1,830 & \
\text { Deposits Received in Advance } & &1,830
\end{array}$

Accepted Answer

None

Question 19

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 above transactions,how much is still owed to Hennigan on December 31 from its customers?

Accepted Answer

A) $0 
B) $250 
C) $500 
D) $750 
A) $0 
B) $250 
C) $500 
D) $750

Question 20

Which of the following statements is false?

Accepted Answer

A) Checks and deposit slips are the main source of documents backing up the bank statement. 
B) Retailers use cash register tapes to recognize sales. 
C) Stock certificates are evidence of being a creditor of the company. 
D) Time cards are used as the source of information to record wages. 
A) Checks and deposit slips are the main source of documents backing up the bank statement. 
B) Retailers use cash register tapes to recognize sales. 
C) Stock certificates are evidence of being a creditor of the company. 
D) Time cards are used as the source of information to record wages.

If debits equal credits in a trial balance,then all entries were correctly posted to the accounts.

Which of the following will not cause a trial balance to be out of balance?

A trial balance is a financial statement.

From an accounting perspective,explain how an external event differs from an internal event and give an example of each.

The normal balance of revenue is a(n)____________________.

Given a current ratio of 5 to 1,what is the effect of paying an accounts payable to a supplier?

All of the following are external events (transactions)except for a department store

Only events that can be measured will be reflected in the journal entries.

A bill is received for electric service;the charge for the electricity is recorded,but payment will be made later.For this transaction,identify the effect on the accounting equation.

A(n)________________________ is a list of each account and its balance at a specific point in time.

During November,ABC,Inc.purchased office supplies for cash.The supplies will be used in November.What effect does this purchase transaction have on the accounting equation?

One effect on the accounting equation when a firm lends money is that

The left or debit side of a liability account is used to record ____________________.

Which of the following events (transactions)is an internal event for a business entity?

Four journal entries are presented below.Write an explanation for each entry in the space provided below the entry. A) Cash 12,200 Service Revenue 12,200 B) Accounts Receivable 17,500 Service Revenue 17,500 C) Cash 16,900 Accounts Receivable 16,900 D) Cash 1,830 Deposits Received in Advance 1,830

Which of the following statements is false?

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

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Exam 3: Processing Accounting Information

If debits equal credits in a trial balance,then all entries were correctly posted to the accounts.

Which of the following will not cause a trial balance to be out of balance?

A trial balance is a financial statement.

From an accounting perspective,explain how an external event differs from an internal event and give an example of each.

The normal balance of revenue is a(n)____________________.

Given a current ratio of 5 to 1,what is the effect of paying an accounts payable to a supplier?

All of the following are external events (transactions)except for a department store

Only events that can be measured will be reflected in the journal entries.

A bill is received for electric service;the charge for the electricity is recorded,but payment will be made later.For this transaction,identify the effect on the accounting equation.

A(n)________________________ is a list of each account and its balance at a specific point in time.

During November,ABC,Inc.purchased office supplies for cash.The supplies will be used in November.What effect does this purchase transaction have on the accounting equation?

One effect on the accounting equation when a firm lends money is that

The left or debit side of a liability account is used to record ____________________.

Which of the following events (transactions)is an internal event for a business entity?

Four journal entries are presented below.Write an explanation for each entry in the space provided below the entry. A) Cash 12,200 Service Revenue 12,200 B) Accounts Receivable 17,500 Service Revenue 17,500 C) Cash 16,900 Accounts Receivable 16,900 D) Cash 1,830 Deposits Received in Advance 1,830

Which of the following statements is false?

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