Question 1

Which of the following statements is incorrect?

Accepted Answer

A)  The normal balance of accounts receivable is a debit. 
B)  The normal balance of dividends is a debit. 
C)  The normal balance of unearned revenues is a credit. 
D)  The normal balance of an expense account is a credit. 
E)  The normal balance of common stock is a credit. 
A)  The normal balance of accounts receivable is a debit. 
B)  The normal balance of dividends is a debit. 
C)  The normal balance of unearned revenues is a credit. 
D)  The normal balance of an expense account is a credit. 
E)  The normal balance of common stock is a credit.

Question 2

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year:
 $\begin{array}{|l|r|r|} 
\hline& \text { Assets } & \text { Liabilities } \
\hline \text { Beginning of the year } & \$ 114,000 & \$ 68,000 \
\hline \text { End of the year } & 135,000 & 73,000\
\hline
\end{array}$ 
If the owners made no investments in the business and no dividends were paid during the year,what was the amount of net income earned by Josephine's Bakery during the current year?

Accepted Answer

Beginning owner's equity = $114,000 - $6

Question 3

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 ending retained earnings.

Accepted Answer

$68,700 +

Question 4

When a company bills a customer for $600 for services rendered,the journal entry to record this transaction will include a $600 debit to Services Revenue.

Accepted Answer

A) True 
 B)False

Question 5

Given the trial balance amounts below,compute net income.
Common stock…….$120,000 Accounts payable…...$25,000
Cash………………..$116,640 Accounts receivable..$22,450
Supplies………........$ 1,500 Office equipment…...$23,300
Prepaid rent……….$ 3,200 Unearned revenue….$ 4,152
Service revenue…...$ 20,000 Utilities expense…....$ 422
Beginning Shaving equipment… $31,640
Retained earnings.$ 30,000

Accepted Answer

A)  $19,578 
B)  $20,528 
C)  $23,728 
D)  $49,578 
E)  $24,578 
A)  $19,578 
B)  $20,528 
C)  $23,728 
D)  $49,578 
E)  $24,578

Question 6

Explain debits and credits and their role in the accounting system.

Accepted Answer

Debit refers to the left side of an acco

Question 7

Match between columns
                        Premises:  The sources of accounting information.
 An increase in an asset, dividend and expense account and decrease in a liability, common stock, and revenue account; recorded on the left side of a T-account.
 The process of transferring journal entry information to the ledger.
 An accounting system where the impact of each transaction is recorded in at least two accounts; the sum of the debits for each entry must equal its credits.
 A file containing all accounts of a company and their balances.
 A company's record of all transactions in one place that shows debits and credits for each transaction.
 A record of the increases and decreases in a specific asset, liability, equity, revenue or expense account.
 Decrease in an asset, dividend and expense account and increase in a liability, common stock and revenue account; recorded on the right side of a T-account.
 A simple account form used as a helpful tool in showing the effects of transactions and events on specific accounts.
 Another name for the accounting books or simply the books.

Accepted Answer

The Answer of Credit and Journal and Account and Ledger is...

Question 8

The three general categories of accounts in a general ledger are __________________,_________________ and __________________________.

Accepted Answer

assets,lia

Question 9

A _______________ is a list of all the accounts used by a company and their identification codes.

Accepted Answer

The answer of A _______________ is a list of all...

Question 10

Explain the debt ratio and its use in analyzing a company's financial condition.

Accepted Answer

The debt ratio is calculated by dividing

Question 11

Flora Accounting Services completed these transactions in February:
a.Purchased office supplies on account,$300.
b.Completed work for a client on credit,$500.
c.Paid cash for the office supplies purchased in (a).
d.Completed work for a client and received $800 cash.
e.Received $500 cash for the work described in (b).
f.Received $1,000 from a client for accounting services to be performed in March.
Prepare journal entries to record the above transactions.Explanations are not necessary.

Accepted Answer

None

Question 12

What is total debits on this trial balance?
Common stock…….$120,000 Accounts payable…...$25,000
Cash………………..$116,640 Accounts receivable..$22,450
Supplies………........$ 1,500 Office equipment…...$23,300
Prepaid rent……….$ 3,200 Unearned revenue….$ 4,152
Service revenue…...$ 20,000 Utilities expense…....$ 422
Beginning Shaving equipment…$31,640
Retained earnings.$ 30,000

Accepted Answer

A)  $291,340 
B)  $106,964 
C)  $199,152 
D)  $193,390 
E)  $203.152 
A)  $291,340 
B)  $106,964 
C)  $199,152 
D)  $193,390 
E)  $203.152

Question 13

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 
B)  $10,900 
C)  $14,400 
D)  $ 9,000 
E)  $15,900 
A)  $17,400 
B)  $10,900 
C)  $14,400 
D)  $ 9,000 
E)  $15,900

Question 14

The balances for the accounts of Mike's Maintenance,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.
 $\begin{array}{|l|r|l|r|}
\hline \text { Accounts payable } & \$ 6,500 & \text { Wages expense } & \$ 36,000 \
\hline \text { Accounts receivable } & 7,000 & \text { Rent expense } & 6,000 \
\hline \text { Cash } & ? & \text { Retained earnings } & 68,700\
\hline \text { Maintenance supplies } & 1,200 & & \
\hline \text { Building } & 125,000 & \text { Land } & 50,000 \
\hline \text { Supplies expense } & 21,500 & \text { Unearned maintenance fees } & 4,000 \
\hline \text { Common stock } & 50,000 & &\ 
\hline \text { Maintenance revenue } & 175,000 & \text { Dividends } &  48,000  \
\hline
\end{array}$ 
Calculate the correct balance for Cash and prepare a trial balance.

Accepted Answer

@#IMG-DLM&_TB6312_00

Question 15

Accounting records are also referred to as the books.

Accepted Answer

A) True 
 B)False

Question 16

A business paid a $100 cash dividend.Assume the company had a $2,000 balance in cash immediately prior to this transaction and that this was the first time dividends had ever been paid.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.Show ending account balances.

Accepted Answer

@#IMG-DLM&_TB6312_00

Question 17

An asset created by prepayment of an expense 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 18

Of the following accounts,the one that normally has a credit balance is:

Accepted Answer

A)  Cash 
B)  Office Equipment 
C)  Sales Salaries Payable 
D)  Dividends 
E)  Sales Salaries Expense 
A)  Cash 
B)  Office Equipment 
C)  Sales Salaries Payable 
D)  Dividends 
E)  Sales Salaries Expense

Question 19

What would be the account balance in the Cash account after the following transactions,assuming a zero beginning balance?
$\begin{array}{|l|l|}
\hline \text { Owner invested cash. } & \$ 100,000 \
\hline \text { Purchased supplies with cash. } & \$ 20,000 \
\hline \text { Received bill for one month of rent. } & \$ 2,200 \
\hline \text { Paid wages. } & \$ 800 \
\hline \text { Billed customer for services performed services } & \$ 1,250\
\hline 
\end{array}$

Accepted Answer

A)  $124,250 
B)  $80,150 
C)  $78,250 
D)  $79,200 
E)  $80,450 
A)  $124,250 
B)  $80,150 
C)  $78,250 
D)  $79,200 
E)  $80,450

Question 20

Preparation of a trial balance is the first step in the analyzing and recording process.

Accepted Answer

A) True 
 B)False

Which of the following statements is incorrect?

When a company bills a customer for $600 for services rendered,the journal entry to record this transaction will include a $600 debit to Services Revenue.

Explain debits and credits and their role in the accounting system.

The three general categories of accounts in a general ledger are __________,_ and __________________.

A _______________ is a list of all the accounts used by a company and their identification codes.

Explain the debt ratio and its use in analyzing a company's financial condition.

Accounting records are also referred to as the books.

An asset created by prepayment of an expense is:

Of the following accounts,the one that normally has a credit balance is:

Preparation of a trial balance is the first step in the analyzing and recording process.

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

Exam 2: Analyzing and Recording Transactions

Which of the following statements is incorrect?

When a company bills a customer for $600 for services rendered,the journal entry to record this transaction will include a $600 debit to Services Revenue.

Explain debits and credits and their role in the accounting system.

The three general categories of accounts in a general ledger are __________________,_________________ and __________________________.

A _______________ is a list of all the accounts used by a company and their identification codes.

Explain the debt ratio and its use in analyzing a company's financial condition.

Accounting records are also referred to as the books.

An asset created by prepayment of an expense is:

Of the following accounts,the one that normally has a credit balance is:

Preparation of a trial balance is the first step in the analyzing and recording process.

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 three general categories of accounts in a general ledger are __________,_ and __________________.