Question 1

A source document is a record used to accumulate amounts for each individual asset,liability,revenue,expense,and component of stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 2

The initial step in the recording process is posting.

Accepted Answer

A) True 
 B)False

Question 3

Not all recognizable events are supported by a standard source document.

Accepted Answer

A) True 
 B)False

Question 4

The payment of employee salaries has what effect on the accounting equation?

Accepted Answer

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

Question 5

Services are provided for customers who pay for the services immediately.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 6

Copper Corp.
Use the selected accounts for Copper Corp.presented below to answer the following question(s).
   ​
 $\text { DEPOSITS RECEIVED IN ADVANCE }$ ​
  
-Read the information on Copper Corp..  
On which date did the company collect an advance deposit?

Accepted Answer

A) August 2 
B) August 3 
C) August 5 
D) August 7 
A) August 2 
B) August 3 
C) August 5 
D) August 7

Question 7

Which of the following accounts is increased by a credit entry?

Accepted Answer

A)  Interest Revenue 
B) Salary Expense 
C) Accounts Receivable 
D) Dividends 
A)  Interest Revenue 
B) Salary Expense 
C) Accounts Receivable 
D) Dividends

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 15 transaction will include a debit of $1,220 to

Accepted Answer

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

Question 9

An external event involves interaction between an entity and its environment.

Accepted Answer

A) True 
 B)False

Question 10

The issuance of stock decreases a company's assets and increases its stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 11

The record in which transactions are initially recorded in chronological order as they occur is a(n)

Accepted Answer

A) general journal. 
B) account of events. 
C) general Ledger. 
D) chart of accounts. 
A) general journal. 
B) account of events. 
C) general Ledger. 
D) chart of accounts.

Question 12

The purchase of office equipment on credit has what effect on the accounting equation?

Accepted Answer

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

Question 13

Several transactions are listed below,with the accounting equation stated to the right side of each.Use the following identification codes to indicate the effects of each transaction on the accounting equation.Write your answers in the space provided under the accounting equation.You need an identification code for each element of the accounting equation.An example is given before the first transaction.
?
 $$\text { I-Increase } \quad \text { D-Decrease } \quad \text { NE-No Effect }$$

Accepted Answer

The answer of Several transactions are listed below,with the accounting...

Question 14

An entry made to the right side of an account is called a

Accepted Answer

A) debit. 
B) credit. 
C) double-entry system. 
D) journal entry. 
A) debit. 
B) credit. 
C) double-entry system. 
D) journal entry.

Question 15

Which one of the following best defines an internal event in terms of accounting?

Accepted Answer

A) Every type of transaction is an internal event 
B) An event recognized in a set of financial statements 
C) A happening of consequence to an entity 
D) An event occurring entirely within an entity 
A) Every type of transaction is an internal event 
B) An event recognized in a set of financial statements 
C) A happening of consequence to an entity 
D) An event occurring entirely within an entity

Question 16

Union Inc. was organized on June 1, 2017, by two students majoring in education. The two entrepreneurs provided entertainment for children’s birthday parties to supplement their college career. The following transactions occurred during the first month of operations:

June 1: Received contribution of $6,000 from each of the two principal owners of the new business in exchange for shares of stock.
June 1: Purchased lighting equipment for $300 on an open account. The company has 30 days to pay for the equipment.
June 5: Registered as a vendor with the city and paid the $25 monthly fee.
June 9: Purchased an event tent to set up at parties for $2,400 cash.
June 10: Purchased $100 in miscellaneous supplies on account. The company has 30 days to pay for the supplies.
June 15: Paid a $75 bill from a local printer for advertisement signs.
June 17: Customers paid for services with cash of $1,500.
June 24: Billed the local park district $800 entertainment provided to a summer camp.
The park district is to pay one-half of the bill within five working days and the rest within 30 days.
June 29: Received 50% of the amount billed to the park district.
June 30: Customers paid cash for parties of $2,000.
June 30: Paid cash wages of $300 to a friend who helped over the weekend.
June 30: Paid the balance due on the supplies.
1. Prepare a table to summarize the preceding transactions as they affect the accounting
equation. Use the following format. Identify each transaction with the date.
 
2.Prepare an income statement for the month ended June 30,2017.
3.Prepare a classified balance sheet at June 30,2017.
4.Why do you think the two students decided to incorporate their business rather than operate it as a partnership?

Accepted Answer

1.?
 11ea857b_5d0d_d31b_935d_233753e8a5bc

Question 17

A debit entry increases assets,decreases liabilities,or decreases stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 18

The ledgers are an example of an accounting book of original entry.

Accepted Answer

A) True 
 B)False

Question 19

Karen's Flower Shop began business as a corporation in 2017.Several transactions which occurred early in 2017 are described below.Record each transaction in proper form,excluding written explanations,in the general journal provided.
?
 A) January 23, 2017: Stockholders invested cash of $\$ 70,000$ in the business and received 7,000 shares common stock as evidence of their ownership interest.

B) February 1,2017: Rent of $\$ 1,600$ was paid for the month of February.

C) February 7,2017: Equipment with a cost of $\$ 3,000$ was purchased on credit; payment is due within 30 days.

D) February 14,2017: Bills totaling $\$ 5,400$ were presented to customers for flower arrangements created and delivered; $\$ 2,900$ was received in cash immediately; the balance of $\$ 2,500$ is due within 10 days.

E) February 18,2017: Full payment was made for the equipment purchased on February 7 .

F) February 22, 2017: Payment of $\$ 1,900$ was received from customers with balances due from February 14.

G) February 28,2017: Employee salaries of $\$ 3,300$ were paid. ?
 $\begin{array}{llr}
&&\text { General Journal }\
  \text { Date  } & \text {Account Titles and Explanations  } &\text {Post Ref.  } & \text {  Debit} \
\end{array}$

Accepted Answer

None

Question 20

If the landlord has rent _________,then the tenant has rent _________.

Accepted Answer

A) revenue;revenue 
B) revenue;expense 
C) expense;revenue 
D) expense;expense 
A) revenue;revenue 
B) revenue;expense 
C) expense;revenue 
D) expense;expense

A source document is a record used to accumulate amounts for each individual asset,liability,revenue,expense,and component of stockholders' equity.

The initial step in the recording process is posting.

Not all recognizable events are supported by a standard source document.

The payment of employee salaries has what effect on the accounting equation?

Services are provided for customers who pay for the services immediately.For this transaction,identify the effect on the accounting equation.

Which of the following accounts is increased by a credit entry?

An external event involves interaction between an entity and its environment.

The issuance of stock decreases a company's assets and increases its stockholders' equity.

The record in which transactions are initially recorded in chronological order as they occur is a(n)

The purchase of office equipment on credit has what effect on the accounting equation?

An entry made to the right side of an account is called a

Which one of the following best defines an internal event in terms of accounting?

A debit entry increases assets,decreases liabilities,or decreases stockholders' equity.

The ledgers are an example of an accounting book of original entry.

If the landlord has rent _,then the tenant has rent _.

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 source document is a record used to accumulate amounts for each individual asset,liability,revenue,expense,and component of stockholders' equity.

The initial step in the recording process is posting.

Not all recognizable events are supported by a standard source document.

The payment of employee salaries has what effect on the accounting equation?

Services are provided for customers who pay for the services immediately.For this transaction,identify the effect on the accounting equation.

Which of the following accounts is increased by a credit entry?

An external event involves interaction between an entity and its environment.

The issuance of stock decreases a company's assets and increases its stockholders' equity.

The record in which transactions are initially recorded in chronological order as they occur is a(n)

The purchase of office equipment on credit has what effect on the accounting equation?

An entry made to the right side of an account is called a

Which one of the following best defines an internal event in terms of accounting?

A debit entry increases assets,decreases liabilities,or decreases stockholders' equity.

The ledgers are an example of an accounting book of original entry.

If the landlord has rent _________,then the tenant has rent _________.

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 landlord has rent _,then the tenant has rent _.