Question 1

Receiving a payment from a customer on account:

Accepted Answer

A) increases stockholders' equity. 
B) has no effect on total assets. 
C) decreases stockholders' equity. 
D) decreases liabilities. 
A) increases stockholders' equity. 
B) has no effect on total assets. 
C) decreases stockholders' equity. 
D) decreases liabilities.

Question 2

When a company repays cash that is borrowed from the bank:

Accepted Answer

A) total assets remain the same. 
B) liabilities are decreased. 
C) retained earnings is decreased. 
D) total liabilities remain the same. 
A) total assets remain the same. 
B) liabilities are decreased. 
C) retained earnings is decreased. 
D) total liabilities remain the same.

Question 3

An account will have a debit balance if:

Accepted Answer

A) the amount of the credits exceeds the amount of the debits. 
B) the amount of the debits exceeds the amount of the credits. 
C) the account has more debit entries than credit entries. 
D) it is a liability account. 
A) the amount of the credits exceeds the amount of the debits. 
B) the amount of the debits exceeds the amount of the credits. 
C) the account has more debit entries than credit entries. 
D) it is a liability account.

Question 4

A company purchased supplies of $2,000 on account.How does this transaction affect the accounting equation?

Accepted Answer

A) Add $2,000 to Supplies and add $2,000 to Notes Payable. 
B) Add $2,000 to Supplies and subtract $2,000 from Cash. 
C) Add $2,000 to Supplies Expense and add $2,000 to Notes Payable. 
D) Add $2,000 to Supplies and add $2,000 to Accounts Payable. 
A) Add $2,000 to Supplies and add $2,000 to Notes Payable. 
B) Add $2,000 to Supplies and subtract $2,000 from Cash. 
C) Add $2,000 to Supplies Expense and add $2,000 to Notes Payable. 
D) Add $2,000 to Supplies and add $2,000 to Accounts Payable.

Question 5

Which of the following is a CORRECT statement?

Accepted Answer

A) Shareholders' equity is also called proprietorship equity. 
B) A proprietorship has more than one capital account. 
C) A partnership has a separate owner's equity account for each partner. 
D) Retained earnings is the owner's investment in the corporation. 
A) Shareholders' equity is also called proprietorship equity. 
B) A proprietorship has more than one capital account. 
C) A partnership has a separate owner's equity account for each partner. 
D) Retained earnings is the owner's investment in the corporation.

Question 6

A receptionist worked one month and was paid $3,800 on the last day of the month.How does this transaction affect the accounting equation?

Accepted Answer

A) Add $3,800 to Cash and add $3,800 to Accounts Payable. 
B) Add $3,800 to Accounts Receivable and subtract $3,800 from Cash. 
C) Add $3,800 to Salary Expense and subtract $3,800 from Retained Earnings. 
D) Subtract $3,800 from Cash and subtract $3,800 from Retained Earnings. 
A) Add $3,800 to Cash and add $3,800 to Accounts Payable. 
B) Add $3,800 to Accounts Receivable and subtract $3,800 from Cash. 
C) Add $3,800 to Salary Expense and subtract $3,800 from Retained Earnings. 
D) Subtract $3,800 from Cash and subtract $3,800 from Retained Earnings.

Question 7

The financial statements can be prepared from the trial balance.

Accepted Answer

A) True 
 B)False

Question 8

A company completed the following transactions during the month of October: I.Purchased office supplies on account,$5,400.
  V.Paid the monthly rent of $4,600.
What was the company's total revenue for the month?

Accepted Answer

A) $21,000 
B) $36,000 
C) $57,000 
D) $86,000 
A) $21,000 
B) $36,000 
C) $57,000 
D) $86,000

Question 9

On May 1,a business provided legal services to a client and billed the client $4,000.The client promised to pay the business in one month.Which journal entry should the business record on May 1?

Accepted Answer

A) Debit Cash for $4,000 and credit Service Revenue for $4,000. 
B) Debit Cash for $4,000 and credit Retained Earnings for $4,000. 
C) Debit Accounts Receivable for $4,000 and credit Service Revenue for $4,000. 
D) Debit Accounts Payable for $4,000 and credit Service Revenue for $4,000. 
A) Debit Cash for $4,000 and credit Service Revenue for $4,000. 
B) Debit Cash for $4,000 and credit Retained Earnings for $4,000. 
C) Debit Accounts Receivable for $4,000 and credit Service Revenue for $4,000. 
D) Debit Accounts Payable for $4,000 and credit Service Revenue for $4,000.

Question 10

Andy Company had a cash balance on May 1 of $27,000.At the end of May,the cash balance has increased to $31,000.During the month of May,Andy received cash of $48,000 from various sources.Based on this information,cash payments for the month of May were:

Accepted Answer

A) $27,000. 
B) $31,000. 
C) $44,000. 
D) $75,000. 
A) $27,000. 
B) $31,000. 
C) $44,000. 
D) $75,000.

Question 11

The normal balance of a revenue account is a ________ because revenues increase ________.

Accepted Answer

A) credit;assets 
B) debit;expenses 
C) debit;retained earnings 
D) credit;retained earnings 
A) credit;assets 
B) debit;expenses 
C) debit;retained earnings 
D) credit;retained earnings

Question 12

A single-step income statement reports different types of revenue that include:

Accepted Answer

A) sales revenue and service revenue. 
B) income tax expense,utilities expense,rent expense. 
C) operating income,income before income taxes,and net income. 
D) cost of goods sold and operating expenses. 
A) sales revenue and service revenue. 
B) income tax expense,utilities expense,rent expense. 
C) operating income,income before income taxes,and net income. 
D) cost of goods sold and operating expenses.

Question 13

Indicate whether the account is increased with a debit or a credit.Also indicate if the account would appear on the Balance Sheet (BS),Income Statement (IS),or the Statement of Retained Earnings (SRE).

Accepted Answer

The answer of Indicate whether the account is increased with...

Question 14

Prepare the journal entry(ies)for the following transactions:
May 2,2019: Main Street Enterprises purchased office supplies,for $2,000,on account.
June 2,2019: Main Street paid for the supplies.

Accepted Answer

The answer of Prepare the journal entry(ies)for the following transactions:
May...

Question 15

A company receives an utility bill and immediately pays it.With this transaction:

Accepted Answer

A) stockholders' equity is decreased. 
B) expenses are decreased. 
C) assets are increased. 
D) liabilities are increased. 
A) stockholders' equity is decreased. 
B) expenses are decreased. 
C) assets are increased. 
D) liabilities are increased.

Question 16

If the sum of the credits to an account exceed the sum of the debits to the account,the account will have a credit balance.

Accepted Answer

A) True 
 B)False

Receiving a payment from a customer on account:

When a company repays cash that is borrowed from the bank:

An account will have a debit balance if:

A company purchased supplies of $2,000 on account.How does this transaction affect the accounting equation?

Which of the following is a CORRECT statement?

A receptionist worked one month and was paid $3,800 on the last day of the month.How does this transaction affect the accounting equation?

The financial statements can be prepared from the trial balance.

A company completed the following transactions during the month of October: I.Purchased office supplies on account,$5,400. V.Paid the monthly rent of $4,600. What was the company's total revenue for the month?

On May 1,a business provided legal services to a client and billed the client $4,000.The client promised to pay the business in one month.Which journal entry should the business record on May 1?

Andy Company had a cash balance on May 1 of $27,000.At the end of May,the cash balance has increased to $31,000.During the month of May,Andy received cash of $48,000 from various sources.Based on this information,cash payments for the month of May were:

The normal balance of a revenue account is a because revenues increase .

A single-step income statement reports different types of revenue that include:

Indicate whether the account is increased with a debit or a credit.Also indicate if the account would appear on the Balance Sheet (BS),Income Statement (IS),or the Statement of Retained Earnings (SRE).

Prepare the journal entry(ies)for the following transactions: May 2,2019: Main Street Enterprises purchased office supplies,for $2,000,on account. June 2,2019: Main Street paid for the supplies.

A company receives an utility bill and immediately pays it.With this transaction:

If the sum of the credits to an account exceed the sum of the debits to the account,the account will have a credit balance.

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 2: Transaction Analysis

Receiving a payment from a customer on account:

When a company repays cash that is borrowed from the bank:

An account will have a debit balance if:

A company purchased supplies of $2,000 on account.How does this transaction affect the accounting equation?

Which of the following is a CORRECT statement?

A receptionist worked one month and was paid $3,800 on the last day of the month.How does this transaction affect the accounting equation?

The financial statements can be prepared from the trial balance.

A company completed the following transactions during the month of October: I.Purchased office supplies on account,$5,400. V.Paid the monthly rent of $4,600. What was the company's total revenue for the month?

On May 1,a business provided legal services to a client and billed the client $4,000.The client promised to pay the business in one month.Which journal entry should the business record on May 1?

Andy Company had a cash balance on May 1 of $27,000.At the end of May,the cash balance has increased to $31,000.During the month of May,Andy received cash of $48,000 from various sources.Based on this information,cash payments for the month of May were:

The normal balance of a revenue account is a ________ because revenues increase ________.

A single-step income statement reports different types of revenue that include:

Indicate whether the account is increased with a debit or a credit.Also indicate if the account would appear on the Balance Sheet (BS),Income Statement (IS),or the Statement of Retained Earnings (SRE).

Prepare the journal entry(ies)for the following transactions: May 2,2019: Main Street Enterprises purchased office supplies,for $2,000,on account. June 2,2019: Main Street paid for the supplies.

A company receives an utility bill and immediately pays it.With this transaction:

If the sum of the credits to an account exceed the sum of the debits to the account,the account will have a credit balance.

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

The normal balance of a revenue account is a because revenues increase .