Question 1

A company received cash in exchange for issuing stock.This transaction increased assets and:

Accepted Answer

A) increased expenses. 
B) increased revenues. 
C) increased liabilities. 
D) increased stockholders' equity. 
A) increased expenses. 
B) increased revenues. 
C) increased liabilities. 
D) increased stockholders' equity.

Question 2

Posting is:

Accepted Answer

A) copying the information from the journal to the trial balance. 
B) entering the data into the journal. 
C) copying the information from the journal to the ledger. 
D) copying the information from the ledger to the financial statements. 
A) copying the information from the journal to the trial balance. 
B) entering the data into the journal. 
C) copying the information from the journal to the ledger. 
D) copying the information from the ledger to the financial statements.

Question 3

Common stock and retained earnings are increased with debits.

Accepted Answer

A) True 
 B)False

Question 4

Timothy Company has the following trial balance at December 31,2019:
   Prepare a balance sheet at December 31,2019.Include a proper heading.

Accepted Answer

@#IMG-DLM& Assets:
Current Assets:
 @#IMG-DLM& *Retained Ear

Question 5

A journal entry that debits Cash and credits Accounts Receivable indicates that:

Accepted Answer

A) payment was received on account. 
B) payment was made on account. 
C) revenue increased. 
D) revenue decreased. 
A) payment was received on account. 
B) payment was made on account. 
C) revenue increased. 
D) revenue decreased.

Question 6

A company received a utility bill for $2,300 and decided to pay it next month due to a shortage of cash.How does this transaction affect the accounting equation?

Accepted Answer

A) Add $2,300 to Utilities Expense and add $2,300 to Cash. 
B) Subtract $2,300 from Cash and add $2,300 to Accounts Payable. 
C) Add $2,300 to Accounts Receivable and subtract $2,300 from Retained Earnings. 
D) Add $2,300 to Accounts Payable and subtract $2,300 from Retained Earnings. 
A) Add $2,300 to Utilities Expense and add $2,300 to Cash. 
B) Subtract $2,300 from Cash and add $2,300 to Accounts Payable. 
C) Add $2,300 to Accounts Receivable and subtract $2,300 from Retained Earnings. 
D) Add $2,300 to Accounts Payable and subtract $2,300 from Retained Earnings.

Question 7

Accounts with normal debit balances include:

Accepted Answer

A) Cash,Accounts Receivable,and Accounts Payable. 
B) Cash,Supplies,and Accounts Payable. 
C) Cash,Accounts Receivable,and Supplies. 
D) Cash,Supplies,and Notes Payable. 
A) Cash,Accounts Receivable,and Accounts Payable. 
B) Cash,Supplies,and Accounts Payable. 
C) Cash,Accounts Receivable,and Supplies. 
D) Cash,Supplies,and Notes Payable.

Question 8

Lori Nichols started an engineering firm,Engineering Enterprises P.C.During its first month of operations,the following transactions were completed: I.Lori invested $33,000 in the business,which in turn issued common stock to her.
  V.The business received cash from a customer as payment on account $7,000.
  At the end of the month,cash equals:

Accepted Answer

A) $33,000. 
B) $38,000. 
C) $45,000. 
D) $71,000. 
A) $33,000. 
B) $38,000. 
C) $45,000. 
D) $71,000.

Question 9

The trial balance is used to determine if:

Accepted Answer

A) total assets equal total liabilities. 
B) total debits of all the accounts equal total credits of all the accounts. 
C) total debits of the income statement accounts equal the total credits of the income statement accounts. 
D) total debits of the balance sheet accounts equal the total credits of the balance sheet accounts. 
A) total assets equal total liabilities. 
B) total debits of all the accounts equal total credits of all the accounts. 
C) total debits of the income statement accounts equal the total credits of the income statement accounts. 
D) total debits of the balance sheet accounts equal the total credits of the balance sheet accounts.

Question 10

On August 15,a customer paid $5,000 for services provided a month earlier.The customer was billed on August 1.How does this transaction affect the accounting equation?

Accepted Answer

A) Add $5,000 to Cash and add $5,000 to Service Revenue. 
B) Add $5,000 to Cash and add $5,000 to Retained Earnings. 
C) Add $5,000 to Cash and subtract $5,000 from Accounts Receivable. 
D) Add $5,000 to Accounts Payable and add $5,000 to Cash. 
A) Add $5,000 to Cash and add $5,000 to Service Revenue. 
B) Add $5,000 to Cash and add $5,000 to Retained Earnings. 
C) Add $5,000 to Cash and subtract $5,000 from Accounts Receivable. 
D) Add $5,000 to Accounts Payable and add $5,000 to Cash.

Question 11

On May 1,a company provided legal services for a new client.The legal fee was $2,000 and the client paid,by check,before leaving the office that day.How does this transaction affect the accounting equation?

Accepted Answer

A) Add $2,000 to Cash and subtract $2,000 from Service Revenue. 
B) Add $2,000 to Cash and add $2,000 to Retained Earnings. 
C) Add $2,000 to Cash and subtract $2,000 from Accounts Receivable. 
D) Add $2,000 to Cash and subtract $2,000 from Accounts Payable. 
A) Add $2,000 to Cash and subtract $2,000 from Service Revenue. 
B) Add $2,000 to Cash and add $2,000 to Retained Earnings. 
C) Add $2,000 to Cash and subtract $2,000 from Accounts Receivable. 
D) Add $2,000 to Cash and subtract $2,000 from Accounts Payable.

Question 12

The first step in recording a transaction in the journal is:

Accepted Answer

A) determining whether each account is increased or decreased by the transaction. 
B) copying the information from the journal to the ledger. 
C) entering the debit side of the journal entry on the left margin and the credit side,which is indented to the right. 
D) specifying each account affected by the transaction and classifying the account by type. 
A) determining whether each account is increased or decreased by the transaction. 
B) copying the information from the journal to the ledger. 
C) entering the debit side of the journal entry on the left margin and the credit side,which is indented to the right. 
D) specifying each account affected by the transaction and classifying the account by type.

Question 13

Martin Company had the following transactions during its first month of operations:
   Required:
1.Journalize the entries.Omit the explanations.
2.Prepare a single-step income statement for the first month of operations.Include a proper heading.
3.Prepare a statement of retained earnings for the first month of operations.Include a proper heading.

Accepted Answer

1.
 @#IMG-DLM& @#IMG-DLM& 3.Ma

Question 14

Entries are listed in the journal:

Accepted Answer

A) alphabetically. 
B) chronologically. 
C) with income statement accounts first and then balance sheet accounts. 
D) in order of importance. 
A) alphabetically. 
B) chronologically. 
C) with income statement accounts first and then balance sheet accounts. 
D) in order of importance.

Question 15

In the journalizing process,the credit side is entered on the left margin,and the debit side is indented to the right.

Accepted Answer

A) True 
 B)False

Question 16

When services are performed on account:

Accepted Answer

A) cash is increased. 
B) revenue will not be recorded until the cash is received from the customer. 
C) accounts receivable is increased. 
D) accounts payable is increased. 
A) cash is increased. 
B) revenue will not be recorded until the cash is received from the customer. 
C) accounts receivable is increased. 
D) accounts payable is increased.

Question 17

A transaction is any event that has a financial impact on the business and that can be measured reliably.

Accepted Answer

A) True 
 B)False

Question 18

Yellow Company had a balance of $31,000 in Accounts Payable at the beginning of June,and purchased $104,000 of merchandise on account during the month.At the end of June,Yellow's Accounts Payable balance was $29,000.What amount did Yellow pay on account during June?

Accepted Answer

A) $44,000 
B) $75,000 
C) $104,000 
D) $106,000 
A) $44,000 
B) $75,000 
C) $104,000 
D) $106,000

Question 19

When using the double-entry system of accounting each transaction affects only two accounts.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements,regarding the rules of debits and credits,is CORRECT?

Accepted Answer

A) An asset is increased by a credit. 
B) Common stock is increased by a debit. 
C) A liability is increased by a debit. 
D) Revenue is increased by a credit. 
A) An asset is increased by a credit. 
B) Common stock is increased by a debit. 
C) A liability is increased by a debit. 
D) Revenue is increased by a credit.

A company received cash in exchange for issuing stock.This transaction increased assets and:

Posting is:

Common stock and retained earnings are increased with debits.

Timothy Company has the following trial balance at December 31,2019: Prepare a balance sheet at December 31,2019.Include a proper heading.

A journal entry that debits Cash and credits Accounts Receivable indicates that:

A company received a utility bill for $2,300 and decided to pay it next month due to a shortage of cash.How does this transaction affect the accounting equation?

Accounts with normal debit balances include:

The trial balance is used to determine if:

On August 15,a customer paid $5,000 for services provided a month earlier.The customer was billed on August 1.How does this transaction affect the accounting equation?

On May 1,a company provided legal services for a new client.The legal fee was $2,000 and the client paid,by check,before leaving the office that day.How does this transaction affect the accounting equation?

The first step in recording a transaction in the journal is:

Entries are listed in the journal:

In the journalizing process,the credit side is entered on the left margin,and the debit side is indented to the right.

When services are performed on account:

A transaction is any event that has a financial impact on the business and that can be measured reliably.

Yellow Company had a balance of $31,000 in Accounts Payable at the beginning of June,and purchased $104,000 of merchandise on account during the month.At the end of June,Yellow's Accounts Payable balance was $29,000.What amount did Yellow pay on account during June?

When using the double-entry system of accounting each transaction affects only two accounts.

Which of the following statements,regarding the rules of debits and credits,is CORRECT?

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

A company received cash in exchange for issuing stock.This transaction increased assets and:

Posting is:

Common stock and retained earnings are increased with debits.

Timothy Company has the following trial balance at December 31,2019: Prepare a balance sheet at December 31,2019.Include a proper heading.

A journal entry that debits Cash and credits Accounts Receivable indicates that:

A company received a utility bill for $2,300 and decided to pay it next month due to a shortage of cash.How does this transaction affect the accounting equation?

Accounts with normal debit balances include:

The trial balance is used to determine if:

On August 15,a customer paid $5,000 for services provided a month earlier.The customer was billed on August 1.How does this transaction affect the accounting equation?

On May 1,a company provided legal services for a new client.The legal fee was $2,000 and the client paid,by check,before leaving the office that day.How does this transaction affect the accounting equation?

The first step in recording a transaction in the journal is:

Entries are listed in the journal:

In the journalizing process,the credit side is entered on the left margin,and the debit side is indented to the right.

When services are performed on account:

A transaction is any event that has a financial impact on the business and that can be measured reliably.

Yellow Company had a balance of $31,000 in Accounts Payable at the beginning of June,and purchased $104,000 of merchandise on account during the month.At the end of June,Yellow's Accounts Payable balance was $29,000.What amount did Yellow pay on account during June?

When using the double-entry system of accounting each transaction affects only two accounts.

Which of the following statements,regarding the rules of debits and credits,is CORRECT?

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