Question 1

If a company provides services to a customer on credit the service provider company should credit Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 2

The dividends account normally has a credit balance since it is an equity account.

Accepted Answer

A) True 
 B)False

Question 3

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 4

What is net income for Shiver Ice House?
$$\begin{array} { l l } 
\text { Common Stock...\$ }  120,000 & \text { Accounts Payable.....\$25,000 } \
\text { Cash..............\$116,640 } & \text { Accounts Receivable..\$22,450 } \
\text { Supplies..........\$ } 1,500 & \text { Office Equipment.....\$23,300 } \
\text { Prepaid Rent......\$ } 3,200 & \text { Unearned Revenue...\$ } 4,152 \
\text { Revenue..........\$ } 20,000 & \text { Utilities Expense......\$ } 422 \
\text { Retained Earnings.\$ } 30,000 & \text { Shaving Equipment...\$31,640 }
\end{array}$$

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 5

The following is a list of accounts and identification letters A through J for Shannon Management Co.:
 $\begin{array}{|l|l|l|l|}
\hline \text { A. } & \text { Common Stock } & \text { F. } & \text { Prepaid Rent } \
\hline \text { B. } & \text { Interest Payable } & \text { G. } & \text { Advertising Expense } \
\hline \text { C. } & \text { Land } & \text { H. } & \text { Unearned Rent Revenue } \
\hline \text { D. } & \text { Dividends } & \text { I. } & \text { Commissions Earned } \
\hline \text { E. } & \text { Fees Earned } & \text { J. } & \text { Notes Receivable } \
\hline
\end{array}$
 
Use the form below to identify the type of account and its normal balance.The first item is filled in as an example.

Accepted Answer

The answer of The following is a list of accounts...

Question 6

For each of the following errors,indicate on the table below the amount by which the trial balance will be out of balance and which trial balance column (debit or credit)will have the larger total as a result of the error.
a. $100 debit to Cash was debited to the Cash account twice
b. $1,900 credit to Sales was posted as a $190 credit
c. $5,000 debit to Office Equipment was debited to Office Supplies
d. $625 debit to Prepaid Insurance was posted as a $62.50 debit
e. $520 credit to Accounts Payable was not posted
 $\begin{array}{|c|c|c|}
\hline \text { Error } & \begin{array}{c}
\text { Amount Out of } \
\text { Balance }
\end{array} & \begin{array}{c}
\text { Column Having } \
\text { Larger Total }
\end{array} \
\hline \text { a. } & & \
\hline \text { b. } & & \
\hline \text { c. } & & \
\hline \text { d. } & & \
\hline \text { e. } & & \
\hline
\end{array}$

Accepted Answer

None

Question 7

Krenz Car Care,which is owned and operated by Karl Krenz,began business as a corporation in September of the current year.Karl,a master mechanic,had no experience with keeping a set of books.As a result,Karl entered all of September's transactions directly to the ledger accounts.When he tried to locate a particular entry he found it to be confusing and time consuming.He has hired you to improve his accounting procedures.The accounts in his General Ledger are as follows:
   
Prepare the general journal entries,in chronological order (a)through (e),from the T-account entries shown.Include a brief description of the probable nature of each transaction.

Accepted Answer

None

Question 8

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

Accepted Answer

A ledger is a record containing all of t

Question 9

Match between columns
                        Premises:  Salary Expense
 Accounts Payable
 Prepaid Insurance
 Unearned Fee Revenue
 Fees Revenue
 Accounts Receivable
 Common Stock
 Supplies
 Retained Earnings
 Cash
 Equipment
 Dividends

Accepted Answer

The Answer of revenue and expense and asset and liability is...

Question 10

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 11

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

-     A record of the increases and decreases in a specific asset, liability, equity, revenue or expense item

Accepted Answer

A)  Credit 
B)  Journal 
C)  Account 
D)  Ledger 
E)  Source documents 
F) Accounting records 
G) Debit 
H) T-account 
I) Posting 
J) Double-entry accounting 
A)  Credit 
B)  Journal 
C)  Account 
D)  Ledger 
E)  Source documents 
F) Accounting records 
G) Debit 
H) T-account 
I) Posting 
J) Double-entry accounting

Question 12

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 13

When a company provides services for which cash will not be received until some future date,the company should record unearned revenue for the amount charged to the customer.

Accepted Answer

A) True 
 B)False

Question 14

_____________________________ 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 15

Match between columns
                        Premises:  Balance column account
 Debt ratio
 Account balance
 Chart of accounts
 Ledger
 Journal
 Note payable
 Trial balance
 Credit
 Debit

Accepted Answer

The Answer of The sources of accounting information. and A is...

Question 16

Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business,RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

Accepted Answer

A) 
$$\begin{array} { | l | c | c | } 
\hline \text { Assets } & 200,000 & \
\hline \text { Comman Stack } & & 200,000 \
\hline
\end{array}$$ 
B) 
$\begin{array}{|l|r|r|}
\hline\text { Cash and Land } & 200,000 & \
\hline \text { Common Stock } & & 200,000 \
\hline
\end{array}$ 
C) 
$$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 70,000 & \
\hline \text { Land } & 130,000 & \
\hline \text { Common Stack } & & 200,000 \
\hline
\end{array}$$ 
D) 
$$\begin{array} { |l | r | r | } 
\hline \text { Common Stock } & 200,000 & \
\hline \text { Cash } & & 70,000 \
\hline \text { Land } & & 130,000 \
\hline
\end{array}$$ 
E) 
$$\begin{array} { | c | r | r | } 
\hline \text { Common Stock } & 200,000 & \
\hline \text { Assets } & & 200,000 \
\hline
\end{array}$$ 
A) 
$$\begin{array} { | l | c | c | } 
\hline \text { Assets } & 200,000 & \
\hline \text { Comman Stack } & & 200,000 \
\hline
\end{array}$$ 
B) 
$\begin{array}{|l|r|r|}
\hline\text { Cash and Land } & 200,000 & \
\hline \text { Common Stock } & & 200,000 \
\hline
\end{array}$ 
C) 
$$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 70,000 & \
\hline \text { Land } & 130,000 & \
\hline \text { Common Stack } & & 200,000 \
\hline
\end{array}$$ 
D) 
$$\begin{array} { |l | r | r | } 
\hline \text { Common Stock } & 200,000 & \
\hline \text { Cash } & & 70,000 \
\hline \text { Land } & & 130,000 \
\hline
\end{array}$$ 
E) 
$$\begin{array} { | c | r | r | } 
\hline \text { Common Stock } & 200,000 & \
\hline \text { Assets } & & 200,000 \
\hline
\end{array}$$

Question 17

Of the following errors,which one on its own will cause the trial balance to be out of balance?

Accepted Answer

A) A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense 
B) A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable 
C) A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash 
D) A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash 
E) An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash 
A) A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense 
B) A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable 
C) A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash 
D) A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash 
E) An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash

Question 18

A ledger is:

Accepted Answer

A) A record containing all accounts (with amounts)for a business 
B) A journal in which transactions are first recorded 
C) A collection of documents that describe transactions and events during the accounting process 
D) A list of all accounts with their debit balances at a point in time 
E) A list of all accounts a company uses and includes an identification number assigned to each account 
A) A record containing all accounts (with amounts)for a business 
B) A journal in which transactions are first recorded 
C) A collection of documents that describe transactions and events during the accounting process 
D) A list of all accounts with their debit balances at a point in time 
E) A list of all accounts a company uses and includes an identification number assigned to each account

Question 19

A trial balance that balances is not proof of complete accuracy in recording transactions.

Accepted Answer

A) True 
 B)False

Question 20

The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

Accepted Answer

A) The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700 
B) The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700 
C) The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400 
D) The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400 
E) The total of the Debit column of the trial balance will equal the total of the Credit column 
A) The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700 
B) The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700 
C) The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400 
D) The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400 
E) The total of the Debit column of the trial balance will equal the total of the Credit column

If a company provides services to a customer on credit the service provider company should credit Accounts Receivable.

The dividends account normally has a credit balance since it is an equity account.

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:

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

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

Match the following definitions and terms by placing the number that identifies the best definition in the blank space next to the term. - A record of the increases and decreases in a specific asset, liability, equity, revenue or expense item

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?

When a company provides services for which cash will not be received until some future date,the company should record unearned revenue for the amount charged to the customer.

_____________________________ 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.

Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business,RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

Of the following errors,which one on its own will cause the trial balance to be out of balance?

A ledger is:

A trial balance that balances is not proof of complete accuracy in recording transactions.

The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

Introducing Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

Exam 2: Analyzing and Recording Transactions

If a company provides services to a customer on credit the service provider company should credit Accounts Receivable.

The dividends account normally has a credit balance since it is an equity account.

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:

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

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

Match the following definitions and terms by placing the number that identifies the best definition in the blank space next to the term. - A record of the increases and decreases in a specific asset, liability, equity, revenue or expense item

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?

When a company provides services for which cash will not be received until some future date,the company should record unearned revenue for the amount charged to the customer.

_____________________________ 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.

Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business,RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

Of the following errors,which one on its own will cause the trial balance to be out of balance?

A ledger is:

A trial balance that balances is not proof of complete accuracy in recording transactions.

The credit purchase of a delivery truck for $4,700 was posted to Delivery Trucks as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

Introducing Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

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.