Exam 2: Analyzing Business Transactions

Which of the following is not a measurement issue in accounting?

Explain why the dollar amount of total owner's equity probably will not equal the dollar amount that would remain if all the assets were sold and all the liabilities were then settled.

Post the following transaction.

Which of the following accounts is classified differently from the others listed?

Office supplies become expenses

Which of the following gives the correct sequence of accounting procedures?

The journal is a chronological record of all transactions.

In the journal provided, prepare journal entries (in good form) for the following transactions. If no entry is required, write "no entry." Omit explanations.

Which of the following statements is false about a journal entry?

An increase in an asset is recorded by a debit.

Which of the following accounts has a normal debit balance?

All of the following are examples of source documents except

The cost principle relates most closely to the

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

The Post. Ref. column in the general ledger shows that an amount has been posted when which of the following is placed in it?

One can obtain a clear picture of a company's liquidity by referring to its statement of cash flows.

When a business reports an asset at an inflated dollar amount, it has violated the measurement issue of

When a service has been performed, but no cash has been received, which of the following statements is true?

Unearned revenues are recorded by companies that

Column totals are called footings.