Question 1

A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 2

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

Accepted Answer

A) double-entry system. 
B) debit. 
C) dredit. 
D) None of these are correct. 
A) double-entry system. 
B) debit. 
C) dredit. 
D) None of these are correct.

Question 3

Described below are several transactions that an organization like the Hummingbird Co.might record.Several accounts from the organization's financial statements also are listed below.Using these account titles,record each transaction in proper journal entry format in the general journal provided.A written explanation for each journal entry is not required.
?
 $$\begin{array} { l l } 
\text { Accounts: } \
\text { Cash } & \text { Common Stock } \
\text { Accounts Receivable } & \text { Sales Revenue } \
\text { Musical Instruments } & \text { Selling Expenses } \
& \text { General \& Administrative Salaries } \
\text { Accounts Payable } & \text { Expense }\
\text { Deposits Received in Advance }
\end{array}$$ ?
 A) Customers are mailed bills for tickets, $\$ 225,000$.
B) Customers pay for tickets in advance, $\$ 130,000$.
C) Administrative employees are paid their monthly sal aries, $\$ 14,000$.
D) An invoice is received for new musical instruments purchased, $\$ 15,200$; payment is due in 30 days.
E) Payments received from customers for amounts billed in a previous transaction amount to $\$ 135,000$.
F) Payment is made for the instruments invoice received in a previous transaction. ?

Accepted Answer

The answer of Described below are several transactions that an...

Question 4

A company's chart of accounts will reflect the nature of its business.

Accepted Answer

A) True 
 B)False

Question 5

XYZ Corp.made cash sales to customers.What effect does this transaction have on the accounting equation?

Accepted Answer

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

Question 6

The issuance of common stock increases both ____________________ and stockholders' equity.

Accepted Answer

The answer of The issuance of common stock increases both...

Question 7

Rise Corp.received payment from its customers for previous sales on credit.What was the impact on its working capital?

Accepted Answer

A) Increase in working capital 
B) Decrease in working capital 
C) No effect on working capital 
D) Unable to determine 
A) Increase in working capital 
B) Decrease in working capital 
C) No effect on working capital 
D) Unable to determine

Question 8

Dividends are a determinant of net income.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would be a case where an event as a transaction is not supported by a source document?

Accepted Answer

A) Purchase of inventory on credit 
B) Cash sale 
C) Credit sale 
D) None of these are correct 
A) Purchase of inventory on credit 
B) Cash sale 
C) Credit sale 
D) None of these are correct

Question 10

All transactions refer to external events.

Accepted Answer

A) True 
 B)False

Question 11

Several terms that represent components of a bookkeeping system are listed below.For each term,write a brief explanation of how that component is used in a bookkeeping system.Space is provided for your answer immediately below each term.
 A) Accounts
B) Chart of accounts
C) Double-entry system with debits and credits
D) General journal
E) General ledger
F) Trial balance

Accepted Answer

Brief explanations o

Question 12

A trial balance can be distributed to stockholders in place of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

When making a general journal entry,there can only be one debit and one credit.

Accepted Answer

A) True 
 B)False

Question 14

Which pair of accounts has the same set of rules for debit and credit entries?

Accepted Answer

A) Service Revenue and Rent Expense 
B) Dividends and Retained Earnings 
C) Equipment and Salaries Expense 
D) Accounts Receivable and Accounts Payable 
A) Service Revenue and Rent Expense 
B) Dividends and Retained Earnings 
C) Equipment and Salaries Expense 
D) Accounts Receivable and Accounts Payable

Question 15

Services are provided for customers who are sent bills for the amount they owe.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 16

Match between columns
                        Premises:  Supplies are purchased on credit.
 Cash sales are made to customers.
 Land is acquired by signing an agreement to pay a stated amount plus interest in one year.
 Utilities expense is recorded for the current month.
 The weekly payroll is paid.
 Merchandise is sold to a customer on account.
 Payment is made for utility bills that were recorded earlier.
 Investors purchase additional shares of the company's stock directly from the company.

Accepted Answer

The Answer of Purchase invoice and Sales invoice and Cash is...

Question 17

The payment of wages to employees is an internal event.

Accepted Answer

A) True 
 B)False

Question 18

Blake and Ryan each invest $30,000 in a business and are given shares of stock in Jones Industries as evidence of their ownership interests.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 19

Wolfe Inc.
Wolfe Inc.reports these account balances at January 1,2017:
?
 $$\begin{array} { l r } 
\text { Retained Earnings } & \$ 49,000 \
\text { Accounts Receivable } & 20,000 \
\text { Accounts Payable } & 24,000 \
\text { Capital Stock } & 185,000 \
\text { Land } & 153,000 \
\text { Cash } & 13,000 \
\text { Equipment } & 20,000 \
\text { Notes Payable } & 28,000 \
\text { Buildings } & 80,000
\end{array}$$ ?
-See the account balances for Wolfe Inc. ?
In Wolfe's trial balance prepared on January 1,2017,the total of the credit column is

Accepted Answer

A) $182,000. 
B) $286,000. 
C) $196,000. 
D) $166,000. 
A) $182,000. 
B) $286,000. 
C) $196,000. 
D) $166,000.

Question 20

Which of the following transactions does not affect the total assets of Vertican Sailing Corp.?

Accepted Answer

A) A bill is received for the telephone service used by Vertican Sailing during the past month. 
B) Cash dividends are paid by Vertican Sailing. 
C) Customers are billed for sales made on credit by Vertican Sailing. 
D) A new computer is purchased on credit by Vertican Sailing. 
A) A bill is received for the telephone service used by Vertican Sailing during the past month. 
B) Cash dividends are paid by Vertican Sailing. 
C) Customers are billed for sales made on credit by Vertican Sailing. 
D) A new computer is purchased on credit by Vertican Sailing.

A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger.

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

A company's chart of accounts will reflect the nature of its business.

XYZ Corp.made cash sales to customers.What effect does this transaction have on the accounting equation?

The issuance of common stock increases both ____________________ and stockholders' equity.

Rise Corp.received payment from its customers for previous sales on credit.What was the impact on its working capital?

Dividends are a determinant of net income.

Which of the following would be a case where an event as a transaction is not supported by a source document?

All transactions refer to external events.

A trial balance can be distributed to stockholders in place of the balance sheet.

When making a general journal entry,there can only be one debit and one credit.

Which pair of accounts has the same set of rules for debit and credit entries?

Services are provided for customers who are sent bills for the amount they owe.For this transaction,identify the effect on the accounting equation.

The payment of wages to employees is an internal event.

Blake and Ryan each invest $30,000 in a business and are given shares of stock in Jones Industries as evidence of their ownership interests.For this transaction,identify the effect on the accounting equation.

Which of the following transactions does not affect the total assets of Vertican Sailing Corp.?

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

A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger.

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

A company's chart of accounts will reflect the nature of its business.

XYZ Corp.made cash sales to customers.What effect does this transaction have on the accounting equation?

The issuance of common stock increases both ____________________ and stockholders' equity.

Rise Corp.received payment from its customers for previous sales on credit.What was the impact on its working capital?

Dividends are a determinant of net income.

Which of the following would be a case where an event as a transaction is not supported by a source document?

All transactions refer to external events.

A trial balance can be distributed to stockholders in place of the balance sheet.

When making a general journal entry,there can only be one debit and one credit.

Which pair of accounts has the same set of rules for debit and credit entries?

Services are provided for customers who are sent bills for the amount they owe.For this transaction,identify the effect on the accounting equation.

The payment of wages to employees is an internal event.

Blake and Ryan each invest $30,000 in a business and are given shares of stock in Jones Industries as evidence of their ownership interests.For this transaction,identify the effect on the accounting equation.

Which of the following transactions does not affect the total assets of Vertican Sailing Corp.?

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