Question 1

A $190 credit item is posted as a debit.The trial balance column totals therefore will differ by

Accepted Answer

A)  $380. 
B)  $760. 
C)  $190. 
D)  $0. 
A)  $380. 
B)  $760. 
C)  $190. 
D)  $0.

Question 2

Payment on a portion of Accounts Payable will

Accepted Answer

A)  not affect stockholders' equity. 
B)  decrease net income. 
C)  increase total liabilities. 
D)  not affect total assets. 
A)  not affect stockholders' equity. 
B)  decrease net income. 
C)  increase total liabilities. 
D)  not affect total assets.

Question 3

A transaction in which six months' rent is paid in advance results in which of the following journal entries?

Accepted Answer

A)  Prepaid Rent - Debit; Cash - Credit 
B)  Rent Receivable - Debit; Cash - Credit 
C)  Rent Revenue - Debit; Cash - Credit 
D)  Rent Expense- Debit; Cash - Credit 
A)  Prepaid Rent - Debit; Cash - Credit 
B)  Rent Receivable - Debit; Cash - Credit 
C)  Rent Revenue - Debit; Cash - Credit 
D)  Rent Expense- Debit; Cash - Credit

Question 4

Which of the following transactions increases both assets and stockholders' equity?

Accepted Answer

A)  Payment received from a credit customer 
B)  Received a bank loan 
C)  Rendered a service, payment not yet received 
D)  Declared and paid a dividend 
A)  Payment received from a credit customer 
B)  Received a bank loan 
C)  Rendered a service, payment not yet received 
D)  Declared and paid a dividend

Question 5

A $70 credit item is accidentally posted as a debit.The trial balance column totals will therefore differ by

Accepted Answer

A)  $0. 
B)  $35. 
C)  $70. 
D)  $140. 
A)  $0. 
B)  $35. 
C)  $70. 
D)  $140.

Question 6

The process of transferring journal entry information from the journal to the ledger is called

Accepted Answer

A)  journalizing. 
B)  posting. 
C)  footing. 
D)  analyzing. 
A)  journalizing. 
B)  posting. 
C)  footing. 
D)  analyzing.

Question 7

Explain why the dollar amount of total stockholders' equity probably will not equal the dollar amount that would remain if all the assets were sold and all the liabilities were then settled.

Accepted Answer

The valuation of assets on the balance s

Question 8

The Unearned Fees account is classified as a(n)

Accepted Answer

A)  liability. 
B)  revenue. 
C)  asset. 
D)  expense. 
A)  liability. 
B)  revenue. 
C)  asset. 
D)  expense.

Question 9

Generally,before Accounts Receivable is debited,it is credited.

Accepted Answer

A) True 
 B)False

Question 10

A company that receives money in advance of performing a service.What is the journal entry for the transaction?

Accepted Answer

A)  Unearned Revenue - Debit; Accounts Payable - Credit 
B)  Cash - Debit; Unearned Revenue - Credit 
C)  Cash - Debit; Prepaid Fees - Credit 
D)  Cash - Debit; Accounts Receivable. - Credit 
A)  Unearned Revenue - Debit; Accounts Payable - Credit 
B)  Cash - Debit; Unearned Revenue - Credit 
C)  Cash - Debit; Prepaid Fees - Credit 
D)  Cash - Debit; Accounts Receivable. - Credit

Question 11

Amalgamated Campus Stores,Inc.(ACS)employed student representatives to market grooming aids,casual clothes,and other such products on college campuses.The representatives organized parties at which they displayed samples of all the products.Students who bought products paid the representative,who in turn ordered the products and paid ACS for them.When the products arrived,the student representatives delivered them to the buyers.The representatives paid ACS less than they charged the buyers.The difference represented the earnings of the representatives,who were not employees of ACS.Wall Street investors admired ACS because the company had enjoyed several years of rapid growth in sales and earnings.
Last year,the president of ACS predicted further increases in sales of 30 percent.By December,however,it was apparent that the forecasted sales goals would not be met.So during the last two weeks of December,ACS shipped $23 million of merchandise to the sales representatives to be held for future sales parties.The company billed the student representatives and recorded the shipments as sales.In this way,ACS was able to meet its sales goal for the year.
Were these merchandise shipments properly recorded as sales?

Accepted Answer

The shipments were improperly recorded a

Question 12

Accounts Payable has a normal credit balance.

Accepted Answer

A) True 
 B)False

Question 13

Column totals are called footings.

Accepted Answer

A) True 
 B)False

Question 14

Revenues have a normal credit balance.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Business Transactions

A $190 credit item is posted as a debit.The trial balance column totals therefore will differ by

Payment on a portion of Accounts Payable will

A transaction in which six months' rent is paid in advance results in which of the following journal entries?

Which of the following transactions increases both assets and stockholders' equity?

A $70 credit item is accidentally posted as a debit.The trial balance column totals will therefore differ by

The process of transferring journal entry information from the journal to the ledger is called

Explain why the dollar amount of total stockholders' equity probably will not equal the dollar amount that would remain if all the assets were sold and all the liabilities were then settled.

The Unearned Fees account is classified as a(n)

Generally,before Accounts Receivable is debited,it is credited.

A company that receives money in advance of performing a service.What is the journal entry for the transaction?

Accounts Payable has a normal credit balance.

Column totals are called footings.

Revenues have a normal credit balance.

Uses of Accounting Information and the Financial Statements

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Contributed Capital

Investments

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

The Changing Business Environment - a Managers Perspective

Cost Concepts and Cost Allocation

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions,incltarget Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

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