Question 1

Which of the following accounts might be used when there is a time delay between a transaction and its related cash flow?

Accepted Answer

A)  Accounts Payable 
B)  Fees Earned 
C)  Cash 
D)  Prepaid Rent 
A)  Accounts Payable 
B)  Fees Earned 
C)  Cash 
D)  Prepaid Rent

Question 2

When a service has been performed,but no cash has been received,which of the following statements is true?

Accepted Answer

A)  The entry would include a debit to Accounts Receivable. 
B)  No journal entry would be made. 
C)  The entry would include a debit to Accounts Payable. 
D)  The entry would include a credit to Unearned Revenue. 
A)  The entry would include a debit to Accounts Receivable. 
B)  No journal entry would be made. 
C)  The entry would include a debit to Accounts Payable. 
D)  The entry would include a credit to Unearned Revenue.

Question 3

A purchase is recognized in the accounting records when

Accepted Answer

A)  payment is made for the item purchased. 
B)  the purchase requisition is sent to the purchasing department. 
C)  title transfers from the seller to the buyer. 
D)  the buyer receives the seller's bill. 
A)  payment is made for the item purchased. 
B)  the purchase requisition is sent to the purchasing department. 
C)  title transfers from the seller to the buyer. 
D)  the buyer receives the seller's bill.

Question 4

Dividends should appear on the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following accounts has a normal debit balance?

Accepted Answer

A)  Art Fees Earned 
B)  Notes Payable 
C)  Prepaid Insurance 
D)  Unearned Art Fees 
A)  Art Fees Earned 
B)  Notes Payable 
C)  Prepaid Insurance 
D)  Unearned Art Fees

Question 6

Which pair of accounts follows the rules of debit and credit in the same manner?

Accepted Answer

A)  Revenue from Services and Equipment 
B)  Prepaid Rent and Advertising Expense 
C)  Repair Expense and Notes Payable 
D)  Common Stock and Rent Expense 
A)  Revenue from Services and Equipment 
B)  Prepaid Rent and Advertising Expense 
C)  Repair Expense and Notes Payable 
D)  Common Stock and Rent Expense

Question 7

In a journal entry,credits are always indented.

Accepted Answer

A) True 
 B)False

Question 8

Indicate whether each account below has a normal debit or a normal credit balance.
a. Cash
b. Wages Payable
c. Wages Expense
d. Unearned Fees
e. Prepaid Insurance
f. Notes Payable
g. Interest Receivable
h. Store Equipment
i. Legal Fees Earned
j. Common Stock
k. Depreciation Expense, Buildings

Accepted Answer

a.Debit
b.Credit
c.D

Question 9

Provide explanations for the following related journal entries:
 a.
$\begin{array}{|l|r|r|}
\hline \text { Cash } & 6,000 & \
\quad \text { Common Stock } & & 6,000 \
\hline
\end{array}$

b.
$\begin{array}{|c|r|r|}
\hline \text { Law Library } & 3,400 & \
\text { Accounts Payable } & & 3,400 \
\hline
\end{array}$

c.
$\begin{array}{|l|r|r|}
\hline \text { Cash } & 600 & \
\text { Accounts Receivable } & 1,000 & \
\quad \text { Legal Fees Earned } & & 1,600 \
\hline
\end{array}$

d.
$\begin{array}{|l|l|l|}
\hline \text { Cash } & 500 & \
\text { Accounts Receivable }& & 500\
\hline 
\end{array}$

e.
$\begin{array}{|l|r|r|}
\hline
\text { Accounts Payable } & 3,400  \
\text { Cash }& & 3,400  \
\hline
\end{array}$

Accepted Answer

a.Stockholders invested cash into the bu

Question 10

Investments by stockholders are recorded in the Common Stock account,not in the Retained Earnings account.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are examples of source documents except

Accepted Answer

A)  checks. 
B)  invoices. 
C)  journals. 
D)  receipts. 
A)  checks. 
B)  invoices. 
C)  journals. 
D)  receipts.

Question 12

Post the following transaction.

Accepted Answer

The answer of Post the following transaction.
   ...

Question 13

In a journal entry,the Post.Ref.column is left blank until the entry has been posted.

Accepted Answer

A) True 
 B)False

Question 14

If Accounts Receivable has debit postings of $29,000,credit postings of $22,000,and a normal ending balance of $24,000,which of the following was its beginning balance?

Accepted Answer

A)  $31,000 Dr. 
B)  $17,000 Dr. 
C)  $17,000 Cr. 
D)  $31,000 Cr. 
A)  $31,000 Dr. 
B)  $17,000 Dr. 
C)  $17,000 Cr. 
D)  $31,000 Cr.

Question 15

Harris Corporation provided monthly waste-removal services for Goble Corporation,which resulted in the following transactions in Harris's records:

Using T accounts,prepare the corresponding entries in Goble's records.

Accepted Answer

Question 16

Which of the following accounts is an asset?

Accepted Answer

A)  Retained Earnings 
B)  Notes Payable 
C)  Prepaid Rent 
D)  Supplies Expense 
A)  Retained Earnings 
B)  Notes Payable 
C)  Prepaid Rent 
D)  Supplies Expense

Question 17

Liabilities are established with debits and eliminated with credits.

Accepted Answer

A) True 
 B)False

Question 18

When a business hires a new employee,a recordable transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 19

Wages payable is a type of expense.

Accepted Answer

A) True 
 B)False

Question 20

Posting is performed by transferring information from the

Accepted Answer

A)  source documents to the journal. 
B)  source documents to the ledger. 
C)  journal to the ledger. 
D)  ledger to the journal. 
A)  source documents to the journal. 
B)  source documents to the ledger. 
C)  journal to the ledger. 
D)  ledger to the journal.

Exam 2: Analyzing Business Transactions

Which of the following accounts might be used when there is a time delay between a transaction and its related cash flow?

When a service has been performed,but no cash has been received,which of the following statements is true?

A purchase is recognized in the accounting records when

Dividends should appear on the statement of retained earnings.

Which of the following accounts has a normal debit balance?

Which pair of accounts follows the rules of debit and credit in the same manner?

In a journal entry,credits are always indented.

Indicate whether each account below has a normal debit or a normal credit balance. a. Cash b. Wages Payable c. Wages Expense d. Unearned Fees e. Prepaid Insurance f. Notes Payable g. Interest Receivable h. Store Equipment i. Legal Fees Earned j. Common Stock k. Depreciation Expense, Buildings

Provide explanations for the following related journal entries: a. Cash 6,000 Common Stock 6,000 b. Law Library 3,400 Accounts Payable 3,400 c. Cash 600 Accounts Receivable 1,000 Legal Fees Earned 1,600 d. Cash 500 Accounts Receivable 500 e. Accounts Payable 3,400 Cash 3,400

Investments by stockholders are recorded in the Common Stock account,not in the Retained Earnings account.

All of the following are examples of source documents except

Post the following transaction.

In a journal entry,the Post.Ref.column is left blank until the entry has been posted.

If Accounts Receivable has debit postings of $29,000,credit postings of $22,000,and a normal ending balance of $24,000,which of the following was its beginning balance?

Harris Corporation provided monthly waste-removal services for Goble Corporation,which resulted in the following transactions in Harris's records: Using T accounts,prepare the corresponding entries in Goble's records.

Which of the following accounts is an asset?

Liabilities are established with debits and eliminated with credits.

When a business hires a new employee,a recordable transaction has occurred.

Wages payable is a type of expense.

Posting is performed by transferring information from the

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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