Question 1

When working with T accounts,an important rule to remember is:

Accepted Answer

A) when an account is debited,an amount is entered on the right-hand side on the T account. 
B) an increase to accounts payable will be recorded as a debit. 
C) to credit an account means to enter an amount on the right-hand side of the T account. 
D) the debit side of a T account is on the right-hand side of the T account for assets and expenses. 
A) when an account is debited,an amount is entered on the right-hand side on the T account. 
B) an increase to accounts payable will be recorded as a debit. 
C) to credit an account means to enter an amount on the right-hand side of the T account. 
D) the debit side of a T account is on the right-hand side of the T account for assets and expenses.

Question 2

Simmons Company began the month with a balance of $84,000 in Accounts Receivable.An analysis of the account determined that sales on account for the month totaled $113,000.At the end of the month,the balance in Accounts Receivable was $86,000.From this information,it can be determined that Simmons Company had collections from customers on account of:

Accepted Answer

A) $29,000. 
B) $57,000. 
C) $115,000. 
D) $111,000. 
A) $29,000. 
B) $57,000. 
C) $115,000. 
D) $111,000.

Question 3

A trial balance has which of the following features?

Accepted Answer

A) Totals for balance sheet accounts only. 
B) Totals for income statement accounts only. 
C) Totals for all accounts listed in the ledger. 
D) Accounts are listed in alphabetical order. 
A) Totals for balance sheet accounts only. 
B) Totals for income statement accounts only. 
C) Totals for all accounts listed in the ledger. 
D) Accounts are listed in alphabetical order.

Question 4

If a company declares and pays a dividend to its stockholders,both cash and expenses will decrease.

Accepted Answer

A) True 
 B)False

Question 5

A company had credit sales of $33,000 and cash sales of $25,000 during the month of May.Also during May,the company paid wages of $22,000 and utilities of $8,000.It also received payments from customers on account totaling $5,800.What was the company's net income for the month?

Accepted Answer

A) $25,000 
B) $28,000 
C) $58,000 
D) $88,000 
A) $25,000 
B) $28,000 
C) $58,000 
D) $88,000

Question 6

A business purchased office supplies of $23,000 by signing a note.The business would:

Accepted Answer

A) debit Supplies for $23,000 and credit Accounts Payable for $23,000. 
B) debit Supplies for $23,000 and credit Notes Payable for $23,000. 
C) debit Notes Receivable for $23,000 and credit Supplies for $23,000. 
D) debit Notes Payable for $23,000 and credit Supplies Expense for $23,000. 
A) debit Supplies for $23,000 and credit Accounts Payable for $23,000. 
B) debit Supplies for $23,000 and credit Notes Payable for $23,000. 
C) debit Notes Receivable for $23,000 and credit Supplies for $23,000. 
D) debit Notes Payable for $23,000 and credit Supplies Expense for $23,000.

Question 7

Which transaction decreases stockholders' equity?

Accepted Answer

A) Inventory was purchased on account. 
B) Services were performed on account. 
C) Services were performed and cash was immediately received from the customers. 
D) Employees worked one week and were paid at the end of the week. 
A) Inventory was purchased on account. 
B) Services were performed on account. 
C) Services were performed and cash was immediately received from the customers. 
D) Employees worked one week and were paid at the end of the week.

Question 8

For a new business,the beginning balance of retained earnings equals:

Accepted Answer

A) cash invested by the stockholders. 
B) beginning balance of the common stock account. 
C) zero. 
D) budgeted net income for the first year. 
A) cash invested by the stockholders. 
B) beginning balance of the common stock account. 
C) zero. 
D) budgeted net income for the first year.

Question 9

If a company performs services on account,the revenue is not earned until the cash is collected.

Accepted Answer

A) True 
 B)False

Question 10

Business events are recorded even if the financial impact cannot be measured.

Accepted Answer

A) True 
 B)False

Question 11

An account receivable represents the promise of the business to pay a debt.

Accepted Answer

A) True 
 B)False

Question 12

A transaction that includes a debit to an expense and a credit to a liability indicates that:

Accepted Answer

A) revenues increased. 
B) expenses decreased. 
C) liabilities increased. 
D) liabilities decreased. 
A) revenues increased. 
B) expenses decreased. 
C) liabilities increased. 
D) liabilities decreased.

Question 13

Define and provide an example of each of the following.

Accepted Answer

The answer of Define and provide an example of each...

Question 14

The trial balance summarizes all the account balances for the financial statements and shows whether total debits equal total credits.

Accepted Answer

A) True 
 B)False

Question 15

A chart of accounts:

Accepted Answer

A) is used by an organization to determine the balance in all of their accounts. 
B) lists all of the accounts of an organization in alphabetical order. 
C) must be the same for all organizations. 
D) lists all of an organization's accounts and account numbers. 
A) is used by an organization to determine the balance in all of their accounts. 
B) lists all of the accounts of an organization in alphabetical order. 
C) must be the same for all organizations. 
D) lists all of an organization's accounts and account numbers.

Question 16

An example of a slide-type error is writing:

Accepted Answer

A) $1,300 as $3,100. 
B) $300 as $600. 
C) $5,000 as $10,000. 
D) $500 as $50. 
A) $1,300 as $3,100. 
B) $300 as $600. 
C) $5,000 as $10,000. 
D) $500 as $50.

Question 17

The Diamond Store began business on June 1.During the month of June,Diamond had cash payments of $8,000.At the end of June,it had a $20,000 cash balance.Based on this information,the cash receipts for the month of June were:

Accepted Answer

A) $12,000. 
B) $20,000. 
C) $28,000. 
D) $36,000. 
A) $12,000. 
B) $20,000. 
C) $28,000. 
D) $36,000.

Question 18

The normal balance of an expense account is a ________ because expenses decrease ________.

Accepted Answer

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

Question 19

Which of the following transactions would decrease an asset and decrease stockholders' equity?

Accepted Answer

A) payment of an accounts payable 
B) performance of a service for a client on account 
C) borrowing money from the bank for thirty days 
D) declaration and payment of a dividend to the shareholders 
A) payment of an accounts payable 
B) performance of a service for a client on account 
C) borrowing money from the bank for thirty days 
D) declaration and payment of a dividend to the shareholders

Question 20

A company declared and paid dividends of $1,300.How does this transaction affect the accounting equation?

Accepted Answer

A) Add $1,300 to Revenue and add $1,300 to Cash. 
B) Add $1,300 to Dividends and add $1,300 to Accounts Receivable. 
C) Subtract $1,300 from Retained Earnings and subtract $1,300 from Cash. 
D) Add $1,300 to Dividend Expense and subtract $1,300 from Cash. 
A) Add $1,300 to Revenue and add $1,300 to Cash. 
B) Add $1,300 to Dividends and add $1,300 to Accounts Receivable. 
C) Subtract $1,300 from Retained Earnings and subtract $1,300 from Cash. 
D) Add $1,300 to Dividend Expense and subtract $1,300 from Cash.

When working with T accounts,an important rule to remember is:

A trial balance has which of the following features?

If a company declares and pays a dividend to its stockholders,both cash and expenses will decrease.

A company had credit sales of $33,000 and cash sales of $25,000 during the month of May.Also during May,the company paid wages of $22,000 and utilities of $8,000.It also received payments from customers on account totaling $5,800.What was the company's net income for the month?

A business purchased office supplies of $23,000 by signing a note.The business would:

Which transaction decreases stockholders' equity?

For a new business,the beginning balance of retained earnings equals:

If a company performs services on account,the revenue is not earned until the cash is collected.

Business events are recorded even if the financial impact cannot be measured.

An account receivable represents the promise of the business to pay a debt.

A transaction that includes a debit to an expense and a credit to a liability indicates that:

Define and provide an example of each of the following.

The trial balance summarizes all the account balances for the financial statements and shows whether total debits equal total credits.

A chart of accounts:

An example of a slide-type error is writing:

The Diamond Store began business on June 1.During the month of June,Diamond had cash payments of $8,000.At the end of June,it had a $20,000 cash balance.Based on this information,the cash receipts for the month of June were:

The normal balance of an expense account is a because expenses decrease .

Which of the following transactions would decrease an asset and decrease stockholders' equity?

A company declared and paid dividends of $1,300.How does this transaction affect the accounting equation?

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

When working with T accounts,an important rule to remember is:

A trial balance has which of the following features?

If a company declares and pays a dividend to its stockholders,both cash and expenses will decrease.

A company had credit sales of $33,000 and cash sales of $25,000 during the month of May.Also during May,the company paid wages of $22,000 and utilities of $8,000.It also received payments from customers on account totaling $5,800.What was the company's net income for the month?

A business purchased office supplies of $23,000 by signing a note.The business would:

Which transaction decreases stockholders' equity?

For a new business,the beginning balance of retained earnings equals:

If a company performs services on account,the revenue is not earned until the cash is collected.

Business events are recorded even if the financial impact cannot be measured.

An account receivable represents the promise of the business to pay a debt.

A transaction that includes a debit to an expense and a credit to a liability indicates that:

Define and provide an example of each of the following.

The trial balance summarizes all the account balances for the financial statements and shows whether total debits equal total credits.

A chart of accounts:

An example of a slide-type error is writing:

The Diamond Store began business on June 1.During the month of June,Diamond had cash payments of $8,000.At the end of June,it had a $20,000 cash balance.Based on this information,the cash receipts for the month of June were:

The normal balance of an expense account is a ________ because expenses decrease ________.

Which of the following transactions would decrease an asset and decrease stockholders' equity?

A company declared and paid dividends of $1,300.How does this transaction affect the accounting equation?

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 an expense account is a because expenses decrease .