Question 1

What would be the appropriate entry for the following transaction?
Bill Co.performed $5,200 in consulting services on account.

Accepted Answer

A)  Credit to Cash, debit to Accounts Receivable. 
B)  Debit to Service Revenue, debit to Cash. 
C)  Debit to Accounts Receivable, credit to Cash. 
D)  Debit to Service Revenue, credit to Cash. 
E)  Debit to Accounts Receivable, credit to Service Revenue. 
A)  Credit to Cash, debit to Accounts Receivable. 
B)  Debit to Service Revenue, debit to Cash. 
C)  Debit to Accounts Receivable, credit to Cash. 
D)  Debit to Service Revenue, credit to Cash. 
E)  Debit to Accounts Receivable, credit to Service Revenue.

Question 2

An account balance is:

Accepted Answer

A)  The total of the credit side of the account. 
B)  The total of the debit side of the account. 
C)  The difference between the total debits and total credits for an account including the beginning balance. 
D)  Assets = Liabilities + Equity 
E)  Always a credit. 
A)  The total of the credit side of the account. 
B)  The total of the debit side of the account. 
C)  The difference between the total debits and total credits for an account including the beginning balance. 
D)  Assets = Liabilities + Equity 
E)  Always a credit.

Question 3

On September 30,the Cash account of Value Company had a normal balance of $5,000.During September,the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Accepted Answer

A)  $0 balance 
B)  $4,300 debit balance 
C)  $4,300 credit balance 
D)  $5,700 debit balance 
E)  $5,700 credit balance 
A)  $0 balance 
B)  $4,300 debit balance 
C)  $4,300 credit balance 
D)  $5,700 debit balance 
E)  $5,700 credit balance

Question 4

Revenues and expenses are two categories of ____________________ accounts.

Accepted Answer

The answer of Revenues and expenses are two categories of...

Question 5

A ___________________________ gives a complete record of each transaction in one place and shows debits and credits for each transaction.

Accepted Answer

general jo

Question 6

A company had total assets of $350,000; total liabilities of $101,500; and total equity of $248,500.Calculate its debt ratio.

Accepted Answer

$101,500/$

Question 7

Posting is the transfer of the information from each journal entry to the ledger.

Accepted Answer

A) True 
 B)False

Question 8

A ___________________ is a record containing all accounts for a company along with their balances.

Accepted Answer

general le

Question 9

Which of the following is a TRUE statement concerning a company's financial statements?

Accepted Answer

A)  Balance sheet and income statement data combined contain the complete financial picture of a given company. 
B)  A trial balance is another name for a balance sheet. 
C)  Another name for the income statement is the earnings statement. 
D)  Dividends paid to a company's shareholders are shown on the income statement. 
E)  The balance sheet shows the financial position of a company for a period of time. 
A)  Balance sheet and income statement data combined contain the complete financial picture of a given company. 
B)  A trial balance is another name for a balance sheet. 
C)  Another name for the income statement is the earnings statement. 
D)  Dividends paid to a company's shareholders are shown on the income statement. 
E)  The balance sheet shows the financial position of a company for a period of time.

Question 10

The process of transferring general journal information to the ledger is:

Accepted Answer

A)  Double-entry accounting. 
B)  Posting. 
C)  Balancing an account. 
D)  Journalizing. 
E)  Not required unless debits do not equal credits. 
A)  Double-entry accounting. 
B)  Posting. 
C)  Balancing an account. 
D)  Journalizing. 
E)  Not required unless debits do not equal credits.

Question 11

The debt ratio reflects the risk of a company to both its owners and creditors.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is false with regard to the debt ratio?

Accepted Answer

A)  It is of use to both internal and external users of accounting information. 
B)  A relatively high ratio is always desirable. 
C)  The dividing line for a high and low ratio varies from industry to industry. 
D)  Many factors such as the company's age, stability, profitability, and cash flow influence the determination of what would be interpreted as a high versus a low ratio. 
E)  The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt. 
A)  It is of use to both internal and external users of accounting information. 
B)  A relatively high ratio is always desirable. 
C)  The dividing line for a high and low ratio varies from industry to industry. 
D)  Many factors such as the company's age, stability, profitability, and cash flow influence the determination of what would be interpreted as a high versus a low ratio. 
E)  The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt.

Question 13

An account is a record of increases and decreases in a specific asset,liability,equity,revenue,or expense item.

Accepted Answer

A) True 
 B)False

Question 14

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.
$$\begin{array} { l r l r } 
\text { Accounts payable } & \$ 6,400 & \text { Wages expense } & \$ 35,000 \
\text { Accounts receivable } & 7,000 & \text { Rent expense } & 5,000 \
\text { Cash } & 10,000 & \text { Retained earnings } & 68,700 \
\text { Office supplies } & 1,000 & \text { Land } & 53,000 \
\text { Building } & 99,000 & \text { Unearned revenue } & 7,000 \
\text { Supplies expense } & 15,000 & \text { Dividends } & 20,000 \
\text { Consulting revenue } & 150,000 & \text { Common stock } & 12,900
\end{array}$$
Calculate total assets.

Accepted Answer

$7,000 + 10,000 + 1,

Question 15

An account used to record the owners' investments in the business is called:

Accepted Answer

A)  Dividends 
B)  Common Stock 
C)  Revenue 
D)  Expense 
E)  Liability 
A)  Dividends 
B)  Common Stock 
C)  Revenue 
D)  Expense 
E)  Liability

Question 16

On April 30,Holden Company had an Accounts Receivable balance of $18,000.During the month of May,total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

Accepted Answer

A)  $5,000 
B)  $47,000 
C)  $52,000 
D)  $57,000 
E)  $32,000 
A)  $5,000 
B)  $47,000 
C)  $52,000 
D)  $57,000 
E)  $32,000

Question 17

List the steps in processing transactions.

Accepted Answer

Business transactions and events are the

Question 18

_______________ is the process of transferring journal entry information to the ledger.

Accepted Answer

The answer of _______________ is the process of transferring journal...

Question 19

Match between columns
                        Premises:  An increase in an asset, dividend, and expense account and a decrease in a liability, common stock, and revenue account; recorded on the left side of a T-account.
 A written promise to pay a definite sum of money on a specified future date.
 A file containing all accounts of a company and their balances.
 A complete record of all transactions in one place that shows debits and credits for each transaction.
 The ratio of total liabilities to total assets; used to reflect the risk associated with the company's debts.
 A list of all accounts used by a company and the identification number assigned to each account.
 A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.
 A decrease in an asset, dividend, and expense account and an increase in a liability, common stock, and revenue account; recorded on the right side of a T-account.
 The difference between total debits and total credits for an account including the beginning balance.
 An account with debit and credit columns for recording entries and a third column for showing the balance of the account after each entry.

Accepted Answer

The Answer of Balance column account and Debt ratio and is...

Question 20

Misa Chien and Jennifer Green founded Nom Nom Truck.What are some accounting challenges they faced when starting their business?

Accepted Answer

They had to account for many a

Exam 2: Analyzing and Recording Transactions

What would be the appropriate entry for the following transaction? Bill Co.performed $5,200 in consulting services on account.

An account balance is:

On September 30,the Cash account of Value Company had a normal balance of $5,000.During September,the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Revenues and expenses are two categories of ____________________ accounts.

A ___________________________ gives a complete record of each transaction in one place and shows debits and credits for each transaction.

A company had total assets of $350,000; total liabilities of $101,500; and total equity of $248,500.Calculate its debt ratio.

Posting is the transfer of the information from each journal entry to the ledger.

A ___________________ is a record containing all accounts for a company along with their balances.

Which of the following is a TRUE statement concerning a company's financial statements?

The process of transferring general journal information to the ledger is:

The debt ratio reflects the risk of a company to both its owners and creditors.

Which of the following statements is false with regard to the debt ratio?

An account is a record of increases and decreases in a specific asset,liability,equity,revenue,or expense item.

An account used to record the owners' investments in the business is called:

On April 30,Holden Company had an Accounts Receivable balance of $18,000.During the month of May,total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?

List the steps in processing transactions.

_______________ is the process of transferring journal entry information to the ledger.

Misa Chien and Jennifer Green founded Nom Nom Truck.What are some accounting challenges they faced when starting their business?

Introducing Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Accounting With Special Journals

Time Value of Money

Investments and International Operations

Accounting for Partnerships

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