Question 1

Given the following ledger account and postings, complete the Balance column. Assume no previous postings in the account.

Accepted Answer

The answer of Given the following ledger account and postings,...

Question 2

Which of the following accounts is increased with a credit?

Accepted Answer

A)  Supplies 
B)  Fees Earned 
C)  Supplies Expense 
D)  Jane Garcia, Withdrawals 
A)  Supplies 
B)  Fees Earned 
C)  Supplies Expense 
D)  Jane Garcia, Withdrawals

Question 3

Which of the following accounts might be used when there is a time delay between a transaction and its related cash flow?

Accepted Answer

A)  Accounts Payable 
B)  Fees Earned 
C)  Cash 
D)  Prepaid Rent 
A)  Accounts Payable 
B)  Fees Earned 
C)  Cash 
D)  Prepaid Rent

Question 4

The primary purpose of the trial balance is to test the

Accepted Answer

A)  recording of transactions. 
B)  analysis of transactions. 
C)  equality of debit and credit balances in the ledger. 
D)  equality of debit and credit entries in the journal. 
A)  recording of transactions. 
B)  analysis of transactions. 
C)  equality of debit and credit balances in the ledger. 
D)  equality of debit and credit entries in the journal.

Question 5

Which of the following errors will not cause the debit and credit columns of a trial balance to be unequal?

Accepted Answer

A)  A debit was posted to an account as a credit. 
B)  A journal entry was posted twice. 
C)  The trial balance was incorrectly summed. 
D)  Only part of a journal entry was posted. 
A)  A debit was posted to an account as a credit. 
B)  A journal entry was posted twice. 
C)  The trial balance was incorrectly summed. 
D)  Only part of a journal entry was posted.

Question 6

Accounts Receivable and Accounts Payable are used when there is a time delay between a transaction and its related cash flow.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following terms does not mean the same as the others?

Accepted Answer

A)  Footing 
B)  Folio 
C)  LP 
D)  Post. Ref. 
A)  Footing 
B)  Folio 
C)  LP 
D)  Post. Ref.

Question 8

The Owner's Capital account has a normal debit balance.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following accounts probably would be listed after the others in a chart of accounts?

Accepted Answer

A)  Unearned Art Fees 
B)  Prepaid Rent 
C)  Fran Ellis, Capital 
D)  Art Fees Earned 
A)  Unearned Art Fees 
B)  Prepaid Rent 
C)  Fran Ellis, Capital 
D)  Art Fees Earned

Question 10

What two purposes are served by using the Post. Ref. columns of a journal and ledger?

Accepted Answer

The Post. Ref. columns provide cross-ref

Question 11

Payment on a portion of Accounts Payable will

Accepted Answer

A)  not affect owner's equity. 
B)  decrease net income. 
C)  increase total liabilities. 
D)  not affect total assets. 
A)  not affect owner's equity. 
B)  decrease net income. 
C)  increase total liabilities. 
D)  not affect total assets.

Question 12

A basic storage unit for accounting data is the account.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following accounts probably would be listed before the others in a chart of accounts?

Accepted Answer

A)  Insurance Expense 
B)  Grace Peterson, Withdrawals 
C)  Notes Payable 
D)  Accumulated Depreciation, Buildings 
A)  Insurance Expense 
B)  Grace Peterson, Withdrawals 
C)  Notes Payable 
D)  Accumulated Depreciation, Buildings

Question 14

A contract is an example of a source document.

Accepted Answer

A) True 
 B)False

Question 15

A trial balance is normally prepared at the end of the day.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following events does not result in the recording of an expense?

Accepted Answer

A)  Withdrawal of cash by the owner 
B)  Purchase of gasoline for fill-up of a company car 
C)  Receipt of a bill from the telephone company 
D)  Payment of wages 
A)  Withdrawal of cash by the owner 
B)  Purchase of gasoline for fill-up of a company car 
C)  Receipt of a bill from the telephone company 
D)  Payment of wages

Question 17

Which of the following is a business event that is considered a recordable transaction?

Accepted Answer

A)  A company hires a new employee. 
B)  A customer purchases merchandise. 
C)  A company orders a product from a supplier. 
D)  An employee sends a purchase requisition to the purchasing department. 
A)  A company hires a new employee. 
B)  A customer purchases merchandise. 
C)  A company orders a product from a supplier. 
D)  An employee sends a purchase requisition to the purchasing department.

Question 18

All companies use the same standard set of accounts.

Accepted Answer

A) True 
 B)False

Question 19

When a company receives an order, a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 20

Expenses have a normal credit balance.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Business Transactions

Given the following ledger account and postings, complete the Balance column. Assume no previous postings in the account.

Which of the following accounts is increased with a credit?

Which of the following accounts might be used when there is a time delay between a transaction and its related cash flow?

The primary purpose of the trial balance is to test the

Which of the following errors will not cause the debit and credit columns of a trial balance to be unequal?

Accounts Receivable and Accounts Payable are used when there is a time delay between a transaction and its related cash flow.

Which of the following terms does not mean the same as the others?

The Owner's Capital account has a normal debit balance.

Which of the following accounts probably would be listed after the others in a chart of accounts?

What two purposes are served by using the Post. Ref. columns of a journal and ledger?

Payment on a portion of Accounts Payable will

A basic storage unit for accounting data is the account.

Which of the following accounts probably would be listed before the others in a chart of accounts?

A contract is an example of a source document.

A trial balance is normally prepared at the end of the day.

Which of the following events does not result in the recording of an expense?

Which of the following is a business event that is considered a recordable transaction?

All companies use the same standard set of accounts.

When a company receives an order, a transaction has occurred.

Expenses have a normal credit balance.

Uses of Accounting Information and the Financial Statements

Measuring Business Income

Completing the Accounting Cycle

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Internal Control

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Contributed Capital

Long Term Liabilities

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Partnerships

The Changing Business Environment-A Managers Pers

Cost Concepts and Cost Allocation

Costing Systems: Job Order Costing

Costing Systems Process Costing

Activity-Based Systems-Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

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