Question 1

A list of all accounts used by a company and the identification number assigned to each account is called a:

Accepted Answer

A)  Ledger 
B)  Journal 
C)  Trial balance 
D)  Chart of accounts 
E)  General Journal 
A)  Ledger 
B)  Journal 
C)  Trial balance 
D)  Chart of accounts 
E)  General Journal

Question 2

The second step in the analyzing and recording process is to record the transactions and events in the _____________________________.

Accepted Answer

The answer of The second step in the analyzing and...

Question 3

___________________ is a promise of payment from customers to sellers.

Accepted Answer

The answer of ___________________ is a promise of payment from...

Question 4

The Fireside Country Inn is a very popular destination for tourists.The Inn requires guests to make reservations at least two months in advance of their stay.A 20 percent down payment is required at the time the reservation is made.When should this inn recognize room rental revenue?

Accepted Answer

A)  On the date the reservation is received. 
B)  On the date the money for the reservation is received. 
C)  On the date the guests stay in the inn. 
D)  On the date the guests pay the remaining 80 percent due. 
E)  Once all cash has been received. 
A)  On the date the reservation is received. 
B)  On the date the money for the reservation is received. 
C)  On the date the guests stay in the inn. 
D)  On the date the guests pay the remaining 80 percent due. 
E)  Once all cash has been received.

Question 5

On November 30,a company had an Accounts Receivable balance of $5,100.During the month of December,total credits to Accounts Receivable were $76,000 from customer payments.The December 31 Accounts Receivable balance was $43,000.What was the amount of credit sales during December?

Accepted Answer

A)  $8,100 
B)  $27,900 
C)  $70,900 
D)  $76,000 
E)  $113,900 
A)  $8,100 
B)  $27,900 
C)  $70,900 
D)  $76,000 
E)  $113,900

Question 6

What is a trial balance? What is its purpose?

Accepted Answer

The trial balance is a list of all of th

Question 7

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _______________ for $25,000 and the cash account is _______________ for $25,000.

Accepted Answer

The answer of FastForward purchased $25,000 of equipment for cash.The...

Question 8

A credit entry:

Accepted Answer

A)  Increases asset and expense accounts and decreases liability, common stock, and revenue accounts. 
B)  Is always a decrease in an account. 
C)  Decreases asset and expense accounts and increases liability, common stock, and revenue accounts. 
D)  Is recorded on the left side of a T-account. 
E)  Is always an increase in an account. 
A)  Increases asset and expense accounts and decreases liability, common stock, and revenue accounts. 
B)  Is always a decrease in an account. 
C)  Decreases asset and expense accounts and increases liability, common stock, and revenue accounts. 
D)  Is recorded on the left side of a T-account. 
E)  Is always an increase in an account.

Question 9

Land and buildings are generally recorded in the same ledger account.

Accepted Answer

A) True 
 B)False

Question 10

A collection of all accounts (with account balances)used by a business is called a:

Accepted Answer

A)  Journal 
B)  Book of original entry 
C)  General Journal 
D)  Balance column journal 
E)  General Ledger 
A)  Journal 
B)  Book of original entry 
C)  General Journal 
D)  Balance column journal 
E)  General Ledger

Question 11

Unearned revenues are:

Accepted Answer

A)  Revenues that have been earned and received in cash. 
B)  Revenues that have been earned but not yet collected in cash. 
C)  Liabilities created when a customer pays in advance for products or services before the revenue is earned. 
D)  Recorded as an asset in the accounting records. 
E)  Increases to retained earnings. 
A)  Revenues that have been earned and received in cash. 
B)  Revenues that have been earned but not yet collected in cash. 
C)  Liabilities created when a customer pays in advance for products or services before the revenue is earned. 
D)  Recorded as an asset in the accounting records. 
E)  Increases to retained earnings.

Question 12

Listed below are two pieces of information.Where is the best place to locate this information,in the journal or the ledger?
1)Details of a transaction that took place on October 3.
2)All of the sales activity that took place during the current month.

Accepted Answer

A)  1. Journal 2. Journal 
B)  1. Journal 2. Ledger 
C)  1. Ledger 2. Ledger 
D)  1. Ledger 2. Journal 
E)  This information is only available on the financial statements. 
A)  1. Journal 2. Journal 
B)  1. Journal 2. Ledger 
C)  1. Ledger 2. Ledger 
D)  1. Ledger 2. Journal 
E)  This information is only available on the financial statements.

Question 13

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Accepted Answer

A) True 
 B)False

Question 14

Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings.This error was not discovered before the journal entry was posted.What is the correcting entry?

Accepted Answer

A)  Debit Buildings and credit Equipment for $50,000 each. 
B)  Debit Equipment and credit Buildings for $50,000 each. 
C)  Debit Buildings and credit Equipment for $100,000 each. 
D)  Debit Equipment and credit Buildings for $100,000 each. 
E)  Debit Equipment for $100,000 and credit Buildings for $50,000. 
A)  Debit Buildings and credit Equipment for $50,000 each. 
B)  Debit Equipment and credit Buildings for $50,000 each. 
C)  Debit Buildings and credit Equipment for $100,000 each. 
D)  Debit Equipment and credit Buildings for $100,000 each. 
E)  Debit Equipment for $100,000 and credit Buildings for $50,000.

Question 15

Cash dividends should be treated as an expense to the business.

Accepted Answer

A) True 
 B)False

Question 16

The debt ratio is calculated by dividing total assets by total liabilities.

Accepted Answer

A) True 
 B)False

Question 17

The balance sheet provides a link between beginning and ending income statements.

Accepted Answer

A) True 
 B)False

Question 18

For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items?

Accepted Answer

A)  The receipt contains coded information that the seller needs to prepare and analyze the trial balance. 
B)  Sellers wish to ensure that the sale in question was rung up on the register in the first place. 
C)  This is a legal requirement mandated by a federal law. 
D)  The receipt is serving as a promissory note. 
E)  To create an environment in which customers do not want to return items. 
A)  The receipt contains coded information that the seller needs to prepare and analyze the trial balance. 
B)  Sellers wish to ensure that the sale in question was rung up on the register in the first place. 
C)  This is a legal requirement mandated by a federal law. 
D)  The receipt is serving as a promissory note. 
E)  To create an environment in which customers do not want to return items.

Question 19

A company sends a $1,500 bill to a customer for delivery services rendered.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

@#IMG-DLM&_TB6312_00

Question 20

These transactions were completed by the art gallery opened by Zed Bennett.
A.Bennett started the gallery,Artery,by investing $40,000 cash and equipment valued at $18,000 in exchange for common stock.
B.Purchased $70 of office supplies on credit.
C.Paid $1,200 cash for the receptionist's salary.
D.Sold a painting for an artist and collected a $4,500 cash commission on the sale.
E.Completed an art appraisal and billed the client $200.
What was the balance of the cash account after these transactions were posted?

Accepted Answer

A)  $12,230 
B)  $12,430 
C)  $43,300 
D)  $43,430 
E)  $61,430 
A)  $12,230 
B)  $12,430 
C)  $43,300 
D)  $43,430 
E)  $61,430

Exam 2: Analyzing and Recording Transactions

A list of all accounts used by a company and the identification number assigned to each account is called a:

The second step in the analyzing and recording process is to record the transactions and events in the _____________________________.

___________________ is a promise of payment from customers to sellers.

The Fireside Country Inn is a very popular destination for tourists.The Inn requires guests to make reservations at least two months in advance of their stay.A 20 percent down payment is required at the time the reservation is made.When should this inn recognize room rental revenue?

On November 30,a company had an Accounts Receivable balance of $5,100.During the month of December,total credits to Accounts Receivable were $76,000 from customer payments.The December 31 Accounts Receivable balance was $43,000.What was the amount of credit sales during December?

What is a trial balance? What is its purpose?

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _______________ for $25,000 and the cash account is _______________ for $25,000.

A credit entry:

Land and buildings are generally recorded in the same ledger account.

A collection of all accounts (with account balances)used by a business is called a:

Unearned revenues are:

Listed below are two pieces of information.Where is the best place to locate this information,in the journal or the ledger? 1)Details of a transaction that took place on October 3. 2)All of the sales activity that took place during the current month.

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings.This error was not discovered before the journal entry was posted.What is the correcting entry?

Cash dividends should be treated as an expense to the business.

The debt ratio is calculated by dividing total assets by total liabilities.

The balance sheet provides a link between beginning and ending income statements.

For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items?

A company sends a $1,500 bill to a customer for delivery services rendered.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

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

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _ for $25,000 and the cash account is _ for $25,000.