Question 1

Stride Rite had total liabilities of $130 million and total assets of $375 million.Its debt ratio was _______________.

Accepted Answer

$130 milli

Question 2

Double-entry accounting requires that the impact of each transaction be recorded in at least two accounts.

Accepted Answer

A) True 
 B)False

Question 3

List all the necessary steps for recording transactions.

Accepted Answer

1.Analyze transactions and sou

Question 4

The right side of a T-account is a(n):

Accepted Answer

A)  Debit 
B)  Increase 
C)  Credit 
D)  Decrease 
E)  Account balance 
A)  Debit 
B)  Increase 
C)  Credit 
D)  Decrease 
E)  Account balance

Question 5

It is not necessary to keep separate accounts for all items of importance for business decisions.

Accepted Answer

A) True 
 B)False

Question 6

An account format that is similar to a T-account in that it has columns for debits and credits but that is different in that it has columns for transaction date,explanation,and the account balance is the ___________________________________.

Accepted Answer

balance co

Question 7

_____________________________ requires that the impact of each transaction be recorded in at least two accounts.It also means that total amounts debited must equal total amounts credited for each transaction.

Accepted Answer

Double-ent

Question 8

The journal is known as a book of original entry.

Accepted Answer

A) True 
 B)False

Question 9

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

Accepted Answer

A)  Dividend account 
B)  Common stock account 
C)  Drawing account 
D)  T-account 
E)  Balance column sheet 
A)  Dividend account 
B)  Common stock account 
C)  Drawing account 
D)  T-account 
E)  Balance column sheet

Question 10

Explain the difference between a general ledger and a chart of accounts.

Accepted Answer

A ledger is a record containing all of t

Question 11

At year-end,Harris Cleaning Service noted the following errors in its trial balance:
1.It understated the total debits to the Cash account by $500 when computing the account
balance.
2.A credit sale for $311 was recorded as a credit to the revenue account,but the offsetting
debit was not posted.
3.A cash payment to a creditor for $2,600 was never recorded.
4.The $680 balance of the Prepaid Insurance account was listed in the credit column of the
trial balance.
5.A $24,900 truck purchase for cash was recorded as a $24,090 debit to Vehicles and a
$24,090 credit to Notes Payable.
6.A purchase of office supplies for $150 was recorded as a debit to Office Equipment.The
offsetting credit entry was correct.
7.An additional investment of $4,000 by Del Harris was recorded as a debit to Common
Stock and as a credit to Cash.
8.The cash payment of the $510 utility bill for December was recorded (but not paid)twice.
9.A revenue account balance of $79,817 was listed on the trial balance as $97,817.
10.A $1,000 cash dividend was recorded as a $100 debit to Dividends and $100 credit to cash.
Using the form below,indicate whether each error would cause the trial balance to be out of balance,the amount of any imbalance and whether a correcting journal entry is required.

Accepted Answer

@#IMG-DLM&_TB6312_00

Question 12

What would be the account balance in the Service Revenue account after the following transactions,assuming a zero beginning balance??
$\begin{array}{|l|l|}
\hline\text { Performed services and left a bill. } & \$ 4,200 \
\hline \text { Performed services and collected immediately. } & \$ 3,500 \
\hline \text { Performed services and billed customer. } & \$ 2,200 \
\hline \text { Performed services on account. } & \$ 6,000 \
\hline \text { Received partial payment on account. } & \$ 1,500\
\hline
\end{array}$

Accepted Answer

A)  $17,400 credit 
B)  $14,400 credit 
C)  $14,400 debit 
D)  $15,900 credit 
E)  $15,900 debit 
A)  $17,400 credit 
B)  $14,400 credit 
C)  $14,400 debit 
D)  $15,900 credit 
E)  $15,900 debit

Question 13

Dividends are a type of business expense.

Accepted Answer

A) True 
 B)False

Question 14

Stride Rite has total assets of $425 million.Its total liabilities are $110 million.Its equity is $315 million.Calculate the debt ratio.

Accepted Answer

A)  38.6% 
B)  13.4% 
C)  34.9% 
D)  25.9% 
E)  14.9% 
A)  38.6% 
B)  13.4% 
C)  34.9% 
D)  25.9% 
E)  14.9%

Question 15

An account balance is the difference between the debits and credits for an account including any beginning balance.

Accepted Answer

A) True 
 B)False

Question 16

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

Accepted Answer

A)  Recorded as a debit to an unearned revenue account. 
B)  Recorded as a debit to a prepaid expense account. 
C)  Recorded as a credit to an unearned revenue account. 
D)  Recorded as a credit to a prepaid expense account. 
E)  Not recorded in the accounting records until the earnings process is complete. 
A)  Recorded as a debit to an unearned revenue account. 
B)  Recorded as a debit to a prepaid expense account. 
C)  Recorded as a credit to an unearned revenue account. 
D)  Recorded as a credit to a prepaid expense account. 
E)  Not recorded in the accounting records until the earnings process is complete.

Question 17

The record in which business transactions are first recorded is the:

Accepted Answer

A)  Account balance 
B)  Ledger 
C)  General journal 
D)  Trial balance 
E)  Cash account 
A)  Account balance 
B)  Ledger 
C)  General journal 
D)  Trial balance 
E)  Cash account

Question 18

Dolly Barton began Barton Office Services in October and during the month completed the following transactions:
a.Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock.
b.Paid $500 cash for an insurance premium covering the next 12 months.
c.Completed a word processing assignment for a customer and collected $1,000 cash.
d.Paid $200 cash for office supplies.
e.Paid $2,000 for October's rent.
Prepare journal entries to record the above transactions.Explanations are unnecessary.

Accepted Answer

a.
 \[\begin{array} { | l | r | r | } 
\

Question 19

Indicate whether a debit or credit entry would be made to record the following changes in each account:
a.To decrease Cash.
b.To increase Common Stock.
c.To decrease Accounts Payable.
d.To increase Salaries Expense.
e.To decrease Supplies.
f.To increase Revenue.
g.To decrease Accounts Receivable.
h.To increase Retained Earnings.

Accepted Answer

a.Credit,b.Credit,c.

Question 20

Explain how accounts are used in recording information about transactions.

Accepted Answer

Accounts are classified into three gener

Exam 2: Analyzing and Recording Transactions

Stride Rite had total liabilities of $130 million and total assets of $375 million.Its debt ratio was _______________.

Double-entry accounting requires that the impact of each transaction be recorded in at least two accounts.

List all the necessary steps for recording transactions.

The right side of a T-account is a(n):

It is not necessary to keep separate accounts for all items of importance for business decisions.

An account format that is similar to a T-account in that it has columns for debits and credits but that is different in that it has columns for transaction date,explanation,and the account balance is the ___________________________________.

_____________________________ requires that the impact of each transaction be recorded in at least two accounts.It also means that total amounts debited must equal total amounts credited for each transaction.

The journal is known as a book of original entry.

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

Explain the difference between a general ledger and a chart of accounts.

Dividends are a type of business expense.

Stride Rite has total assets of $425 million.Its total liabilities are $110 million.Its equity is $315 million.Calculate the debt ratio.

An account balance is the difference between the debits and credits for an account including any beginning balance.

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

The record in which business transactions are first recorded is the:

Explain how accounts are used in recording information about transactions.

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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