Question 1

A list of all accounts and their balances that is used to prove the equality of debits and credits as of a specific date is a(n)

Accepted Answer

A) account. 
B) general journal. 
C) trial balance. 
D) chart of accounts. 
A) account. 
B) general journal. 
C) trial balance. 
D) chart of accounts.

Question 2

During the month,services performed for customers on account amounted to $4,500 and collections from customers in payment of their accounts totaled $3,000.At the end of the month,the Accounts Receivable account had a balance of $3,500.What was the Accounts Receivable balance at the beginning of the month? (Show your work using a T account. )

Accepted Answer

Beginning Balance + Services on Account

Question 3

Debit entries are used to

Accepted Answer

A) increase asset accounts. 
B) decrease expense accounts. 
C) increase liability accounts. 
D) increase revenue accounts. 
A) increase asset accounts. 
B) decrease expense accounts. 
C) increase liability accounts. 
D) increase revenue accounts.

Question 4

Debit and credit would best be described as __________ terms.

Accepted Answer

A) abnormal 
B) increasing/decreasing 
C) quantitative 
D) locational 
A) abnormal 
B) increasing/decreasing 
C) quantitative 
D) locational

Question 5

Given that Carlson Corp.'s current ratio is 3 to 2,what is the effect of obtaining a patent from the inventor in exchange for shares of stock in Carlson Corp.?

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 6

Listed below are selected accounts from the financial statements of Bargain Mart for the year ended December 31,2017.In the blank space provided for each account,indicate what type of account it is,its normal balance,and the debit/credit rules for increasing and decreasing it.Use the following abbreviations for your answers:
?
 $\begin{array}{lll}
& \text { Normal Account } & \text { Rules to Increase or } \
\text { Type of Account } & \text { Balance } & \text { Decrease the Account }\ 
\mathrm{A}=\text { Asset } & \mathrm{Dr}=\text { Debit } & \mathrm{Dr}=\text { Debit } \
\mathrm{L}=\text { Liability } & \mathrm{Cr}=\text { Credit } & \mathrm{Cr}=\text { Credit } \
\mathrm{SE}=\text { Stockholders' Equity } & & \
\mathrm{R}=\text { Revenue } & & \
\mathrm{E}=\text { Expense } & &
\end{array}$
 \(\begin{array}{llcccc} 
&&\text { Type of } &\text { Normal }&\text { Rule to }& \text { Rule to }\
&&\text { Account }&\text { Balance }&\text { Increase }&\text { Decrease }
 \
\text { Example}&\text{Cash}&\text { A } & \text { Dr } & \text { Dr } &\mathrm{Cr}\
\text { (a) } & \text { Income Taxes } &\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}\
\text { (b) } & \text { Accounts Payable }&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}  \
\text { (c) } & \text { Retained Earnings } &\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}\
\text { (d) } & \text { Prepaid Expenses } &\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}\
\text { (e) } & \text { Long-Term Debt }&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad} \
\text { (f) } & \text { Revenues }&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad} \
\text { (g) } & \text { Intangibles } &\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}\
\text { (h) } & \text { Common Stock }&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}&\underline{\quad\quad\quad}
\end{array}\)

Accepted Answer

None

Question 7

The origins of single-entry accounting were documented in a book written by Pacioli over 500 years ago.It includes the concepts of bookkeeping that are still applied today.

Accepted Answer

A) True 
 B)False

Question 8

The totaling of each side of a T account is known as ____________________.

Accepted Answer

The answer of The totaling of each side of a...

Question 9

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) Common Stock (Capital Stock)and Accounts Payable 
B) Salaries Expense and Retained Earnings 
C) Cash and Notes Payable 
D) Sales Revenue and Accounts Receivable 
A) Common Stock (Capital Stock)and Accounts Payable 
B) Salaries Expense and Retained Earnings 
C) Cash and Notes Payable 
D) Sales Revenue and Accounts Receivable

Question 11

The following transactions occurred during March, the first month of operations for Canyon Products, Inc.:

1. Issued 50,000 shares of capital stock in exchange for $600,000 cash.
2. Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance.
3. Made a $60,000 cash payment on the note payable from the purchase of land.
4. Purchased equipment on credit from Burton, Inc. for $63,000.

What is the balance in the Cash account at the end of March?

Accepted Answer

A) $810,000 
B) $210,000 
C) $600,000 
D) $390,000 
A) $810,000 
B) $210,000 
C) $600,000 
D) $390,000

Question 12

A debit is a negative entry.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true?

Accepted Answer

A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account. 
B) The posting of an amount recorded in the general journal can be verified by referring to the account number listed in the Posting Reference column on that line in the general journal. 
C) Business transactions are recorded first in the general ledger,and then that information is transferred to the general journal. 
D) No explanation is needed for each entry in the general journal. 
A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account. 
B) The posting of an amount recorded in the general journal can be verified by referring to the account number listed in the Posting Reference column on that line in the general journal. 
C) Business transactions are recorded first in the general ledger,and then that information is transferred to the general journal. 
D) No explanation is needed for each entry in the general journal.

Question 14

The general journal is often used to record repetitive transactions.

Accepted Answer

A) True 
 B)False

Question 15

The _________________________ is the file or book that contains all of a company's accounts.

Accepted Answer

The answer of The _________________________ is the file or book...

Question 16

Various transactions may change the amount and composition of the assets and liabilities,but the ____________________________ must balance after each transaction.

Accepted Answer

balance sh

Question 17

The bookkeeper for B.Sebastian & Company,Inc.prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented.Assume that the dollar amounts and the descriptions of the entries are correct.
Journal entries:
?
 $\begin{array}{llr}
  \text { Dct. 5 \quad Accounts Receivable } &1,600\
 \text {  Service Revenue} &&1,600\
 \text { Customers were billed for services completed } &\
\
 \text { 11 \quad Cash } &500\
 \text { Service Revenue } & &500\
 \text {Payment is received from a custom er billed for services on  } &\
  \text {October 1.  } &\
\
 \text {  15\quad Office Supplies} &700\
 \text { Accounts Payable } &&700\
 \text { Purchased office furniture on credit; payment is due in 30 days. } &\\
 \text { 25\quad Office Furniture } &700\
 \text {  Payment is made for the office furniture bill received on} &&700\
 \text {October 15.  } &\
\end{array}$
 ?
   ?
   See the journal entries and T accounts for B.Sebastian & Company.
   Required
If you assume that all journal entries have been posted correctly,use the above information to answer these questions:
(1)Identify the transactions that the bookkeeper recorded incorrectly in the general journal.
(2)Prepare the journal entry that the bookkeeper should have made for each transaction that you have identified as being made incorrectly.
(3)For each journal entry recorded incorrectly,indicate the impact of the error on the accounting equation.For your answer,indicate whether each element of the accounting equation,Assets,Liabilities,and Stockholders' Equity,has been "Understated" or "Overstated" or there has been "No Effect."

Accepted Answer

(1)The October 11,15,and 25 entries were

Question 18

A trial balance is a(n)

Accepted Answer

A) optional financial statement used only by accountants. 
B) financial statement that can be used in place of a balance sheet. 
C) list of accounts. 
D) document used to prove the equality of debits and credits in the general ledger. 
A) optional financial statement used only by accountants. 
B) financial statement that can be used in place of a balance sheet. 
C) list of accounts. 
D) document used to prove the equality of debits and credits in the general ledger.

Question 19

Double-entry accounting is best characterized as

Accepted Answer

A) the number of debit entries posted to the ledger equals the number of credit entries. 
B) the number of ledger accounts with debit balances is equal to the number with credit balances. 
C) every transaction affects both an asset account and either a liability account or a stockholders' equity account. 
D) the total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries. 
A) the number of debit entries posted to the ledger equals the number of credit entries. 
B) the number of ledger accounts with debit balances is equal to the number with credit balances. 
C) every transaction affects both an asset account and either a liability account or a stockholders' equity account. 
D) the total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries.

Question 20

There are three elements to the accounting equation: assets,liabilities,and stockholders' equity.Below are five possible types of transactions.For each of these five types,write a description of an example that would illustrate this type of transaction.
 $$\begin{array} { | l | c | c | c | c | } 
\hline \text { Type } & \text { Example of Tran saction } & \text { Assets } = & \text { Liabilities } + & \text { Stockholders' Equity } \
\hline 1 . & & \text { Increase } & \text { Increase } & - \
\hline 2 . & & \text { Increase } & - & \text { Increase } \
\hline 3 . & & \text { Decrease } & \text { Decrease } & - \
\hline 4 . & & \text { Decrease } & - & \text { Decrease } \
\hline 5 . & & \begin{array} { c } 
\text { Decrease } \
\text { Increase }
\end{array} & - & - \
\hline
\end{array}$$

Accepted Answer

Student answers may vary but could inclu

A list of all accounts and their balances that is used to prove the equality of debits and credits as of a specific date is a(n)

Debit entries are used to

Debit and credit would best be described as __________ terms.

Given that Carlson Corp.'s current ratio is 3 to 2,what is the effect of obtaining a patent from the inventor in exchange for shares of stock in Carlson Corp.?

The origins of single-entry accounting were documented in a book written by Pacioli over 500 years ago.It includes the concepts of bookkeeping that are still applied today.

The totaling of each side of a T account is known as ____________________.

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

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

A debit is a negative entry.

Which of the following statements is true?

The general journal is often used to record repetitive transactions.

The _________________________ is the file or book that contains all of a company's accounts.

Various transactions may change the amount and composition of the assets and liabilities,but the ____________________________ must balance after each transaction.

A trial balance is a(n)

Double-entry accounting is best characterized as

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 list of all accounts and their balances that is used to prove the equality of debits and credits as of a specific date is a(n)

Debit entries are used to

Debit and credit would best be described as __________ terms.

Given that Carlson Corp.'s current ratio is 3 to 2,what is the effect of obtaining a patent from the inventor in exchange for shares of stock in Carlson Corp.?

The origins of single-entry accounting were documented in a book written by Pacioli over 500 years ago.It includes the concepts of bookkeeping that are still applied today.

The totaling of each side of a T account is known as ____________________.

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

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

A debit is a negative entry.

Which of the following statements is true?

The general journal is often used to record repetitive transactions.

The _________________________ is the file or book that contains all of a company's accounts.

Various transactions may change the amount and composition of the assets and liabilities,but the ____________________________ must balance after each transaction.

A trial balance is a(n)

Double-entry accounting is best characterized as

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