Question 1

Entries are listed in the journal:

Accepted Answer

A)  alphabetically. 
B)  chronologically. 
C)  in random order. 
D)  in order of importance. 
A)  alphabetically. 
B)  chronologically. 
C)  in random order. 
D)  in order of importance.

Question 2

Missy's Exotic Vacations, Inc., had the following transactions during its first month of operations:
   REQUIRED:
1. Journalize the entries. Omit the explanations.
2. Post the entries to the T-accounts.
3. Prepare a trial balance at the end of the month.

Accepted Answer

@#IMG-DLM& Part 2.

Question 3

Which of the following is not a typical journal entry made by a company?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 4

Paying a dividend to the company's stockholders would include a debit to:

Accepted Answer

A)  Cash and a credit to Dividends. 
B)  Dividends and a credit to Cash. 
C)  Retained Earnings and a credit to Cash. 
D)  Accounts Payable and a credit to Retained Earnings. 
A)  Cash and a credit to Dividends. 
B)  Dividends and a credit to Cash. 
C)  Retained Earnings and a credit to Cash. 
D)  Accounts Payable and a credit to Retained Earnings.

Question 5

The left hand side of a T account is the debit side and the right hand side is the credit side.

Accepted Answer

A) True 
 B)False

Question 6

A company performed services for a customer for cash. This transaction increased assets and:

Accepted Answer

A)  decreased equity. 
B)  increased liabilities. 
C)  increased expenses. 
D)  increased revenues. 
A)  decreased equity. 
B)  increased liabilities. 
C)  increased expenses. 
D)  increased revenues.

Question 7

Evan Jones started a sports consulting business and completed the following transactions during October, 2012:
1. Evan incorporated the business, Sports, Inc., and invested $15,000 for common stock.
2. Purchased a new computer on account, $2,000.
3. Purchased $1,000 of office supplies, paying cash.
4. Signed a football player to a contract and received service revenue of $8,000 on account.
5. Signed a hockey player to a contract and received service revenue of $3,000 cash.
6. Paid his secretary a salary of $2,500 for the month.
7. Paid the monthly rent of $1,000.
8. Collected cash from the football player on account, $8,000.
REQUIRED:
Set up T-accounts for Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Service Revenue, Rent Expense, and Salaries Expense. Post the transactions to the T-accounts and compute ending account balances.

Accepted Answer

The answer of Evan Jones started a sports consulting business...

Question 8

When preparing the financial statements:

Accepted Answer

A)  assets, liabilities, and revenues are reported on the balance sheet. 
B)  the balance sheet reports the beginning balance of retained earnings. 
C)  assets, liabilities, and stockholders' equity are reported on the balance sheet. 
D)  assets, liabilities, and dividends are reported on the balance sheet. 
A)  assets, liabilities, and revenues are reported on the balance sheet. 
B)  the balance sheet reports the beginning balance of retained earnings. 
C)  assets, liabilities, and stockholders' equity are reported on the balance sheet. 
D)  assets, liabilities, and dividends are reported on the balance sheet.

Question 9

The entry to record the performance of services on account for $8,000 would be:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 10

Which of the following is a correct numbering system for a chart of accounts?

Accepted Answer

A)  Accounts payable is numbered 153. 
B)  Utilities expense is numbered 487. 
C)  Accounts receivable is numbered 104. 
D)  Sales revenue is numbered 809. 
A)  Accounts payable is numbered 153. 
B)  Utilities expense is numbered 487. 
C)  Accounts receivable is numbered 104. 
D)  Sales revenue is numbered 809.

Question 11

A trial balance shows total debits of $540,000 and total credits of $450,000. This discrepancy is most likely due to which type of error?

Accepted Answer

A)  Slide 
B)  Transposition 
C)  Mislabeling 
D)  Failure to post a transaction 
A)  Slide 
B)  Transposition 
C)  Mislabeling 
D)  Failure to post a transaction

Question 12

All business transactions involve an increase in at least one account and a decrease in at least one other account.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a business transaction?

Accepted Answer

A)  The company sells goods on account. 
B)  The company buys land for cash. 
C)  The company is featured in a magazine article. 
D)  The company sells stock for cash. 
A)  The company sells goods on account. 
B)  The company buys land for cash. 
C)  The company is featured in a magazine article. 
D)  The company sells stock for cash.

Question 14

In order to see a complete transaction in one place, you would need to look at the:

Accepted Answer

A)  trial balance. 
B)  ledger. 
C)  journal. 
D)  financial statements. 
A)  trial balance. 
B)  ledger. 
C)  journal. 
D)  financial statements.

Question 15

The trial balance is used to determine if:

Accepted Answer

A)  total assets equal total liabilities. 
B)  total debits equal total credits. 
C)  total revenues equal total expenses. 
D)  total increases in accounts equal total decreases in accounts. 
A)  total assets equal total liabilities. 
B)  total debits equal total credits. 
C)  total revenues equal total expenses. 
D)  total increases in accounts equal total decreases in accounts.

Question 16

The normal balance of the Accounts Payable account is a ________ because it is a(n) ________ account.

Accepted Answer

A)  credit; liability 
B)  debit; stockholders' equity 
C)  credit; expense 
D)  debit; asset 
A)  credit; liability 
B)  debit; stockholders' equity 
C)  credit; expense 
D)  debit; asset

Question 17

Aurora Company had a cash balance On May 1 of $17,000. At the end of May, the cash balance had increased to $28,000. During the month of May, Aurora received cash of $26,000 from various sources.
Based on this information, cash payments for the month of May:

Accepted Answer

A)  were $11,000. 
B)  were $15,000. 
C)  were $19,000. 
D)  cannot be determined from the information given. 
A)  were $11,000. 
B)  were $15,000. 
C)  were $19,000. 
D)  cannot be determined from the information given.

Question 18

The accounts of Amy's Pencil Shop, Inc., follow with their normal balances at May 31, 2012. The accounts are listed in alphabetical order.
   REQUIRED:
Prepare the company's trial balance at May 31, 2012, listing accounts in proper sequence.

Accepted Answer

The answer of The accounts of Amy's Pencil Shop, Inc.,...

Question 19

Which of the following is a liability account?

Accepted Answer

A)  Retained Earnings 
B)  Accrued Liabilities 
C)  Accounts Receivable 
D)  Prepaid Expenses 
A)  Retained Earnings 
B)  Accrued Liabilities 
C)  Accounts Receivable 
D)  Prepaid Expenses

Question 20

Which of the following is a true statement?

Accepted Answer

A)  In most accounting systems, the journal, but not the ledger is computerized. 
B)  In the phrase "keeping the books," books refers to the journals and the ledger. 
C)  The journal entry shows the balance in each account. 
D)  If entries are correctly entered in the journal, the same data does not need to be entered in the ledger. 
A)  In most accounting systems, the journal, but not the ledger is computerized. 
B)  In the phrase "keeping the books," books refers to the journals and the ledger. 
C)  The journal entry shows the balance in each account. 
D)  If entries are correctly entered in the journal, the same data does not need to be entered in the ledger.

Entries are listed in the journal:

Missy's Exotic Vacations, Inc., had the following transactions during its first month of operations: REQUIRED: 1. Journalize the entries. Omit the explanations. 2. Post the entries to the T-accounts. 3. Prepare a trial balance at the end of the month.

Which of the following is not a typical journal entry made by a company?

Paying a dividend to the company's stockholders would include a debit to:

The left hand side of a T account is the debit side and the right hand side is the credit side.

A company performed services for a customer for cash. This transaction increased assets and:

When preparing the financial statements:

The entry to record the performance of services on account for $8,000 would be:

Which of the following is a correct numbering system for a chart of accounts?

A trial balance shows total debits of $540,000 and total credits of $450,000. This discrepancy is most likely due to which type of error?

All business transactions involve an increase in at least one account and a decrease in at least one other account.

Which of the following is NOT a business transaction?

In order to see a complete transaction in one place, you would need to look at the:

The trial balance is used to determine if:

The normal balance of the Accounts Payable account is a because it is a(n) account.

Aurora Company had a cash balance On May 1 of $17,000. At the end of May, the cash balance had increased to $28,000. During the month of May, Aurora received cash of $26,000 from various sources. Based on this information, cash payments for the month of May:

The accounts of Amy's Pencil Shop, Inc., follow with their normal balances at May 31, 2012. The accounts are listed in alphabetical order. REQUIRED: Prepare the company's trial balance at May 31, 2012, listing accounts in proper sequence.

Which of the following is a liability account?

Which of the following is a true statement?

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

The Income Statement, the Statement of Comprehensive Income, the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Transaction Analysis

Entries are listed in the journal:

Missy's Exotic Vacations, Inc., had the following transactions during its first month of operations: REQUIRED: 1. Journalize the entries. Omit the explanations. 2. Post the entries to the T-accounts. 3. Prepare a trial balance at the end of the month.

Which of the following is not a typical journal entry made by a company?

Paying a dividend to the company's stockholders would include a debit to:

The left hand side of a T account is the debit side and the right hand side is the credit side.

A company performed services for a customer for cash. This transaction increased assets and:

When preparing the financial statements:

The entry to record the performance of services on account for $8,000 would be:

Which of the following is a correct numbering system for a chart of accounts?

A trial balance shows total debits of $540,000 and total credits of $450,000. This discrepancy is most likely due to which type of error?

All business transactions involve an increase in at least one account and a decrease in at least one other account.

Which of the following is NOT a business transaction?

In order to see a complete transaction in one place, you would need to look at the:

The trial balance is used to determine if:

The normal balance of the Accounts Payable account is a ________ because it is a(n) ________ account.

Aurora Company had a cash balance On May 1 of $17,000. At the end of May, the cash balance had increased to $28,000. During the month of May, Aurora received cash of $26,000 from various sources. Based on this information, cash payments for the month of May:

The accounts of Amy's Pencil Shop, Inc., follow with their normal balances at May 31, 2012. The accounts are listed in alphabetical order. REQUIRED: Prepare the company's trial balance at May 31, 2012, listing accounts in proper sequence.

Which of the following is a liability account?

Which of the following is a true statement?

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

The Income Statement, the Statement of Comprehensive Income, the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

The normal balance of the Accounts Payable account is a because it is a(n) account.