Question 1

Which of the following terms does not mean the same as the others?

Accepted Answer

A)  Footing 
B)  Folio 
C)  LP 
D)  Post. Ref. 
A)  Footing 
B)  Folio 
C)  LP 
D)  Post. Ref. A

Question 2

A trial balance is normally prepared at the end of the day.

Accepted Answer

A) True 
 B)False  False

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

Briefly explain the difference between Unearned Art Fees and Art Fees Earned.

Accepted Answer

Unearned Art Fees appears on the balance

Question 6

Which of the following accounts is classified differently from the others listed?

Accepted Answer

A)  Accounts Receivable 
B)  Retained Earnings 
C)  Prepaid Rent 
D)  Cash 
A)  Accounts Receivable 
B)  Retained Earnings 
C)  Prepaid Rent 
D)  Cash

Question 7

Dividends should appear on the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following events does not require a journal entry?

Accepted Answer

A)  Purchase of a one-year insurance policy 
B)  Agreement to perform a service at a future date 
C)  Performance of a service agreed to at a past date 
D)  Payment for a service performed previously 
A)  Purchase of a one-year insurance policy 
B)  Agreement to perform a service at a future date 
C)  Performance of a service agreed to at a past date 
D)  Payment for a service performed previously

Question 9

Which of the following accounts has a normal credit balance?

Accepted Answer

A)  Dividends 
B)  Automotive Equipment 
C)  Advertising Fees Earned 
D)  Interest Expense 
A)  Dividends 
B)  Automotive Equipment 
C)  Advertising Fees Earned 
D)  Interest Expense

Question 10

Why is the Dividends account increased by a debit? Explain in terms of its relationship to stockholders' equity.

Accepted Answer

Dividends represent a decrease

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The declaration and payment of a dividend will

Accepted Answer

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

Question 13

The classification issue involves the assignment of accounts to business transactions.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following accounts will not affect stockholders' equity?

Accepted Answer

A)  Advertising Expense 
B)  Dividends 
C)  Land 
D)  Sales 
A)  Advertising Expense 
B)  Dividends 
C)  Land 
D)  Sales

Question 15

The cost principle is a solution to the recognition issue.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

All companies use the same standard set of accounts.

Accepted Answer

A) True 
 B)False

Question 18

When a dividend is declared and paid,the Dividends account is debited and Cash is credited.

Accepted Answer

A) True 
 B)False

Question 19

By what amount,if any,would each of the following errors cause a trial balance to be out of balance?
a. A purchase of supplies of $840 was recorded as a debit to Equipment and a credit to Cash for $840.
b. An $890 balance in Prepaid Insurance was copied to the trial balance as a debit of $980.
c. A $600 balance in Accounts Payable was copied to the trial balance as a debit of $600.

Accepted Answer

The answer of By what amount,if any,would each of the...

Question 20

The Office Supplies account is classified as a(n)

Accepted Answer

A)  expense. 
B)  stockholders' equity account. 
C)  asset. 
D)  liability, if the supplies have not yet been paid for. 
A)  expense. 
B)  stockholders' equity account. 
C)  asset. 
D)  liability, if the supplies have not yet been paid for.

Exam 2: Analyzing Business Transactions

Which of the following terms does not mean the same as the others?

A trial balance is normally prepared at the end of the day.

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

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

Briefly explain the difference between Unearned Art Fees and Art Fees Earned.

Which of the following accounts is classified differently from the others listed?

Dividends should appear on the statement of retained earnings.

Which of the following events does not require a journal entry?

Which of the following accounts has a normal credit balance?

Why is the Dividends account increased by a debit? Explain in terms of its relationship to stockholders' equity.

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

The declaration and payment of a dividend will

The classification issue involves the assignment of accounts to business transactions.

Which of the following accounts will not affect stockholders' equity?

The cost principle is a solution to the recognition issue.

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

All companies use the same standard set of accounts.

When a dividend is declared and paid,the Dividends account is debited and Cash is credited.

The Office Supplies account is classified as a(n)

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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