Question 1

On December 3,the Matador Company paid $5,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

Accepted Answer

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Question 2

Which of the following is the appropriate journal entry if a company purchases equipment costing $100,000 by paying cash of $10,000?

Accepted Answer

A)  Debit to Cash, debit to Equipment, credit to Notes Payable. 
B)  No entry should be made. 
C)  Debit to Equipment, credit to Notes Payable, credit to Cash. 
D)  Debit to Cash, debit to Notes Payable, credit to Equipment. 
E)  Debit to Equipment, debit to Notes Payable, credit to Cash. 
A)  Debit to Cash, debit to Equipment, credit to Notes Payable. 
B)  No entry should be made. 
C)  Debit to Equipment, credit to Notes Payable, credit to Cash. 
D)  Debit to Cash, debit to Notes Payable, credit to Equipment. 
E)  Debit to Equipment, debit to Notes Payable, credit to Cash.

Question 3

Generally,the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets,liabilities,equity,revenues,and expenses.

Accepted Answer

A) True 
 B)False

Question 4

Transactions are first recorded in the ledger.

Accepted Answer

A) True 
 B)False

Question 5

According to IFRS,comparative information on financial statements is:

Accepted Answer

A)  Not required. 
B)  Required for publicly traded companies only. 
C)  Required for the preceding period only. 
D)  Required for the last five years. 
E)  Not required, but considered a hallmark for companies of excellence. 
A)  Not required. 
B)  Required for publicly traded companies only. 
C)  Required for the preceding period only. 
D)  Required for the last five years. 
E)  Not required, but considered a hallmark for companies of excellence.

Question 6

The posting process is the link between the _______________ and the _____________.

Accepted Answer

The answer of The posting process is the link between...

Question 7

On October 31,a company's Cash account had a normal balance of $7,000.During October,the account was debited for a total of $4,250 and credited for a total of $5,340.What was the balance in the Cash account at the beginning of October?

Accepted Answer

A)  $0 balance 
B)  $1,090 debit balance 
C)  $2,590 credit balance 
D)  $8,090 debit balance 
E)  $9,590 credit balance 
A)  $0 balance 
B)  $1,090 debit balance 
C)  $2,590 credit balance 
D)  $8,090 debit balance 
E)  $9,590 credit balance

Question 8

What would be the account balance in Accounts Receivable 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 
B)  $10,900 
C)  $14,400 
D)  $ 4,500 
E)  $ 2,000 
A)  $17,400 
B)  $10,900 
C)  $14,400 
D)  $ 4,500 
E)  $ 2,000

Question 9

A debit is:

Accepted Answer

A)  An increase in an account. 
B)  The right-hand side of a T-account. 
C)  A decrease in an account. 
D)  The left-hand side of a T-account. 
E)  An increase to a liability account. 
A)  An increase in an account. 
B)  The right-hand side of a T-account. 
C)  A decrease in an account. 
D)  The left-hand side of a T-account. 
E)  An increase to a liability account.

Question 10

Hamilton Industries has total liabilities of $105 million and total assets of $350 million.Its debt ratio is 333.3%.

Accepted Answer

A) True 
 B)False

Question 11

Debits increase both asset and expense accounts.

Accepted Answer

A) True 
 B)False

Question 12

Common Stock normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 13

Match between columns
                        Premises:  The most flexible type of journal, it can be used to record any kind of transaction.
 A list of all accounts used by a company and the identification number assigned to each account.
 A written promise from a customer to pay a definite sum of money on a specified future date.
 A simple form used as a helpful tool in understanding the effect of transactions and events on specific accounts.
 Liabilities created when customers pay in advance for products or services; satisfied by delivering the products or services in the future.
 A journal entry that affects at least three accounts.
 A column in journals where individual account numbers are entered when entries are posted to ledger accounts.
 The process of transferring journal entry information to the ledger.
 A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense account.
 A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.

Accepted Answer

The Answer of Unearned revenues and Chart of accounts and is...

Question 14

A written promise to pay a definite sum of money on a specific future date is a(n):

Accepted Answer

A)  Unearned revenue 
B)  Prepaid expense 
C)  Credit account 
D)  Note payable 
E)  Account receivable 
A)  Unearned revenue 
B)  Prepaid expense 
C)  Credit account 
D)  Note payable 
E)  Account receivable

Question 15

Wisconsin Rentals purchased office supplies on credit.The journal entry made by Wisconsin Rentals to record this transaction will include a:

Accepted Answer

A)  Debit to Accounts Payable. 
B)  Debit to Accounts Receivable. 
C)  Credit to Cash. 
D)  Credit to Accounts Payable. 
E)  Credit to Retained Earnings. 
A)  Debit to Accounts Payable. 
B)  Debit to Accounts Receivable. 
C)  Credit to Cash. 
D)  Credit to Accounts Payable. 
E)  Credit to Retained Earnings.

Question 16

If a company pays cash to purchase land,the journal entry to record this transaction will include a debit to Cash.

Accepted Answer

A) True 
 B)False

Question 17

Match the following definitions and terms by placing the number that identifies the best definition in the blank space next to the term:

Accepted Answer

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Question 18

Management Services,Inc.provides services to clients.On May 1,a client prepaid Management Services $60,000 for a six-month contract in advance.Management Services' journal entry to record this transaction will include a:

Accepted Answer

A)  Debit to Unearned Management Fees for $60,000. 
B)  Credit to Management Fees Earned for $60,000. 
C)  Credit to Cash for $60,000. 
D)  Credit to Unearned Management Fees for $60,000. 
E)  Debit to Management Fees Earned for $60,000. 
A)  Debit to Unearned Management Fees for $60,000. 
B)  Credit to Management Fees Earned for $60,000. 
C)  Credit to Cash for $60,000. 
D)  Credit to Unearned Management Fees for $60,000. 
E)  Debit to Management Fees Earned for $60,000.

Question 19

A $130 credit to Office Equipment was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Accepted Answer

A)  Office Equipment, understated $130; Fees Earned, overstated $130. 
B)  Office Equipment, understated $260; Fees Earned, overstated $130. 
C)  Office Equipment, overstated $130; Fees Earned, overstated $130. 
D)  Office Equipment, overstated $130; Fees Earned, understated $130. 
E)  Office Equipment, overstated $260; Fees Earned, understated $130. 
A)  Office Equipment, understated $130; Fees Earned, overstated $130. 
B)  Office Equipment, understated $260; Fees Earned, overstated $130. 
C)  Office Equipment, overstated $130; Fees Earned, overstated $130. 
D)  Office Equipment, overstated $130; Fees Earned, understated $130. 
E)  Office Equipment, overstated $260; Fees Earned, understated $130.

Question 20

A revenue account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing and Recording Transactions

On December 3,the Matador Company paid $5,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

Which of the following is the appropriate journal entry if a company purchases equipment costing $100,000 by paying cash of $10,000?

Generally,the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets,liabilities,equity,revenues,and expenses.

Transactions are first recorded in the ledger.

According to IFRS,comparative information on financial statements is:

The posting process is the link between the _______________ and the _____________.

On October 31,a company's Cash account had a normal balance of $7,000.During October,the account was debited for a total of $4,250 and credited for a total of $5,340.What was the balance in the Cash account at the beginning of October?

A debit is:

Hamilton Industries has total liabilities of $105 million and total assets of $350 million.Its debt ratio is 333.3%.

Debits increase both asset and expense accounts.

Common Stock normally has a debit balance.

A written promise to pay a definite sum of money on a specific future date is a(n):

Wisconsin Rentals purchased office supplies on credit.The journal entry made by Wisconsin Rentals to record this transaction will include a:

If a company pays cash to purchase land,the journal entry to record this transaction will include a debit to Cash.

Match the following definitions and terms by placing the number that identifies the best definition in the blank space next to the term:

Management Services,Inc.provides services to clients.On May 1,a client prepaid Management Services $60,000 for a six-month contract in advance.Management Services' journal entry to record this transaction will include a:

A $130 credit to Office Equipment was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

A revenue account normally has a debit balance.

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

Filters

The posting process is the link between the ___ and the _.