Question 1

In accounting,to recognize means to record a transaction or event.

Accepted Answer

A) True 
 B)False

Question 2

When a business erroneously records expenses as assets,it has violated the measurement issue of

Accepted Answer

A)  communication. 
B)  classification. 
C)  valuation. 
D)  recognition. 
A)  communication. 
B)  classification. 
C)  valuation. 
D)  recognition.

Question 3

Entering transactions into the journal is called posting.

Accepted Answer

A) True 
 B)False

Question 4

In a financial report,a double line is placed below the final total(s).

Accepted Answer

A) True 
 B)False

Question 5

Given the following ledger account and postings,complete the Balance column.Assume no previous postings in the account.

Accepted Answer

The answer of Given the following ledger account and postings,complete...

Question 6

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 7

An increase in revenue is recorded with a credit.

Accepted Answer

A) True 
 B)False

Question 8

Despite the advantages of a computer accounting information system,posting still must be done manually.

Accepted Answer

A) True 
 B)False

Question 9

A credit to an asset account means that asset account has been increased.

Accepted Answer

A) True 
 B)False

Question 10

One can obtain a clear picture of a company's liquidity by referring to its statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 11

Another name for the ledger is the book of original entry.

Accepted Answer

A) True 
 B)False

Question 12

Another word for expense is debt.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following accounts might be placed first in a journal entry?

Accepted Answer

A)  Bonds Payable, when it has been decreased 
B)  Cash, when it has been decreased 
C)  Unearned Revenue, when it has been increased 
D)  Interest Income, when it has been increased 
A)  Bonds Payable, when it has been decreased 
B)  Cash, when it has been decreased 
C)  Unearned Revenue, when it has been increased 
D)  Interest Income, when it has been increased

Question 14

All of the following actions can help a business manage its cash flows except

Accepted Answer

A)  convince its creditors to allow payment over a period of time. 
B)  pay for all expenditures immediately. 
C)  be efficient in making collections from its customers. 
D)  arrange for a line of credit at the bank, should the funds be needed. 
A)  convince its creditors to allow payment over a period of time. 
B)  pay for all expenditures immediately. 
C)  be efficient in making collections from its customers. 
D)  arrange for a line of credit at the bank, should the funds be needed.

Question 15

When a business reports an asset at an inflated dollar amount,it has violated the measurement issue of

Accepted Answer

A)  recognition. 
B)  valuation. 
C)  classification. 
D)  realization. 
A)  recognition. 
B)  valuation. 
C)  classification. 
D)  realization.

Question 16

Liabilities are established with debits and eliminated with credits.

Accepted Answer

A) True 
 B)False

Question 17

Wages payable is a type of expense.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a business event that is not considered a recordable transaction?

Accepted Answer

A)  A company receives a product previously ordered. 
B)  A company pays an employee for work performed. 
C)  A customer inquires about the availability of a service. 
D)  A customer purchases a service. 
A)  A company receives a product previously ordered. 
B)  A company pays an employee for work performed. 
C)  A customer inquires about the availability of a service. 
D)  A customer purchases a service.

Question 19

The issue of deciding when to record a transaction is solved by

Accepted Answer

A)  properly classifying the transaction. 
B)  deciding on a point of recognition. 
C)  assigning historical cost to the transaction. 
D)  analyzing the intent of management. 
A)  properly classifying the transaction. 
B)  deciding on a point of recognition. 
C)  assigning historical cost to the transaction. 
D)  analyzing the intent of management.

Question 20

If office equipment is sold at cost in exchange for a promissory note,

Accepted Answer

A)  total liabilities increase. 
B)  total liabilities and stockholders' equity decrease. 
C)  total assets decrease. 
D)  total assets remain the same. 
A)  total liabilities increase. 
B)  total liabilities and stockholders' equity decrease. 
C)  total assets decrease. 
D)  total assets remain the same.

Exam 2: Analyzing Business Transactions

In accounting,to recognize means to record a transaction or event.

When a business erroneously records expenses as assets,it has violated the measurement issue of

Entering transactions into the journal is called posting.

In a financial report,a double line is placed below the final total(s).

Given the following ledger account and postings,complete the Balance column.Assume no previous postings in the account.

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

An increase in revenue is recorded with a credit.

Despite the advantages of a computer accounting information system,posting still must be done manually.

A credit to an asset account means that asset account has been increased.

One can obtain a clear picture of a company's liquidity by referring to its statement of cash flows.

Another name for the ledger is the book of original entry.

Another word for expense is debt.

Which of the following accounts might be placed first in a journal entry?

All of the following actions can help a business manage its cash flows except

When a business reports an asset at an inflated dollar amount,it has violated the measurement issue of

Liabilities are established with debits and eliminated with credits.

Wages payable is a type of expense.

Which of the following is a business event that is not considered a recordable transaction?

The issue of deciding when to record a transaction is solved by

If office equipment is sold at cost in exchange for a promissory note,

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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