Question 1

The proportion of assets that are financed with debt can be calculated using the ________ ratio.

Accepted Answer

A) quick 
B) debt 
C) asset 
D) cash 
A) quick 
B) debt 
C) asset 
D) cash

Question 2

Provide an explanation for each of the follow asset accounts.

Accepted Answer

The answer of Provide an explanation for each of the...

Question 3

Briefly describe each of the following source documents:

Accepted Answer

The answer of Briefly describe each of the following source...

Question 4

A business purchased land for $250,000 cash.Record the transaction in the journal.

Accepted Answer

The answer of A business purchased land for $250,000 cash.Record...

Question 5

Baytown Paper Company has a debt ratio of 25%,which means that 75% of the assets are financed by creditors.

Accepted Answer

A) True 
 B)False

Question 6

Lance Gomez is the owner of a sole proprietorship.Lance withdrew $5,000 cash from the business for personal use.Which of the following accounts is credited?

Accepted Answer

A) Gomez,Capital 
B) Gomez,Withdrawals 
C) Cash 
D) Accounts Payable 
A) Gomez,Capital 
B) Gomez,Withdrawals 
C) Cash 
D) Accounts Payable

Question 7

Which of the following is classified as an asset account?

Accepted Answer

A) Prepaid Insurance 
B) Notes Payable 
C) Owner,Withdrawals 
D) Unearned Revenue 
A) Prepaid Insurance 
B) Notes Payable 
C) Owner,Withdrawals 
D) Unearned Revenue

Question 8

The T-account is a summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits posted on the right side of the vertical line.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is TRUE of a trial balance?

Accepted Answer

A) A trial balance is the first step in the accounting cycle. 
B) A trial balance is also known as a balance sheet. 
C) A trial balance is a list of all accounts with their balances. 
D) A trial balance is also known as the chart of accounts. 
A) A trial balance is the first step in the accounting cycle. 
B) A trial balance is also known as a balance sheet. 
C) A trial balance is a list of all accounts with their balances. 
D) A trial balance is also known as the chart of accounts.

Question 10

Data from a trial balance is used to prepare the income statement,statement of owner's equity,and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

The owner's claim to the assets of a business is called owner's equity.

Accepted Answer

A) True 
 B)False

Question 12

The left side of the T-account for Accounts Receivable is the debit side and the left side of the T-account for Accounts Payable is the credit side.

Accepted Answer

A) True 
 B)False

Question 13

Balancing errors can be detected by computing the difference between total debits and total credits on the trial balance.

Accepted Answer

A) True 
 B)False

Question 14

Converse Florists & Co.reported assets of $1,100 and equity of $500.What is its debt ratio? (Round your percentage answer to two decimal places. )

Accepted Answer

A) 54.55% 
B) 45.45% 
C) 100.00% 
D) 59.55% 
A) 54.55% 
B) 45.45% 
C) 100.00% 
D) 59.55%

Question 15

State whether the normal balance of each of the following accounts is a debit or credit.

Accepted Answer

The answer of State whether the normal balance of each...

Question 16

A trial balance is the list of only a company's asset and liability accounts,along with their account numbers,at a point in time.

Accepted Answer

A) True 
 B)False

Question 17

The balances in the liability and revenue accounts are increased with a credit.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 19

When a business makes a cash payment,the Cash account is debited.

Accepted Answer

A) True 
 B)False

Question 20

The system of accounting in which every transaction affects at least two accounts is called the double-entry system.

Accepted Answer

A) True 
 B)False

The proportion of assets that are financed with debt can be calculated using the ________ ratio.

Provide an explanation for each of the follow asset accounts.

Briefly describe each of the following source documents:

A business purchased land for $250,000 cash.Record the transaction in the journal.

Baytown Paper Company has a debt ratio of 25%,which means that 75% of the assets are financed by creditors.

Lance Gomez is the owner of a sole proprietorship.Lance withdrew $5,000 cash from the business for personal use.Which of the following accounts is credited?

Which of the following is classified as an asset account?

The T-account is a summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits posted on the right side of the vertical line.

Which of the following statements is TRUE of a trial balance?

Data from a trial balance is used to prepare the income statement,statement of owner's equity,and the balance sheet.

The owner's claim to the assets of a business is called owner's equity.

The left side of the T-account for Accounts Receivable is the debit side and the left side of the T-account for Accounts Payable is the credit side.

Balancing errors can be detected by computing the difference between total debits and total credits on the trial balance.

Converse Florists & Co.reported assets of $1,100 and equity of $500.What is its debt ratio? (Round your percentage answer to two decimal places. )

State whether the normal balance of each of the following accounts is a debit or credit.

A trial balance is the list of only a company's asset and liability accounts,along with their account numbers,at a point in time.

The balances in the liability and revenue accounts are increased with a credit.

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

When a business makes a cash payment,the Cash account is debited.

The system of accounting in which every transaction affects at least two accounts is called the double-entry system.

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Recording Business Transactions

The proportion of assets that are financed with debt can be calculated using the ________ ratio.

Provide an explanation for each of the follow asset accounts.

Briefly describe each of the following source documents:

A business purchased land for $250,000 cash.Record the transaction in the journal.

Baytown Paper Company has a debt ratio of 25%,which means that 75% of the assets are financed by creditors.

Lance Gomez is the owner of a sole proprietorship.Lance withdrew $5,000 cash from the business for personal use.Which of the following accounts is credited?

Which of the following is classified as an asset account?

The T-account is a summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits posted on the right side of the vertical line.

Which of the following statements is TRUE of a trial balance?

Data from a trial balance is used to prepare the income statement,statement of owner's equity,and the balance sheet.

The owner's claim to the assets of a business is called owner's equity.

The left side of the T-account for Accounts Receivable is the debit side and the left side of the T-account for Accounts Payable is the credit side.

Balancing errors can be detected by computing the difference between total debits and total credits on the trial balance.

Converse Florists & Co.reported assets of $1,100 and equity of $500.What is its debt ratio? (Round your percentage answer to two decimal places. )

State whether the normal balance of each of the following accounts is a debit or credit.

A trial balance is the list of only a company's asset and liability accounts,along with their account numbers,at a point in time.

The balances in the liability and revenue accounts are increased with a credit.

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

When a business makes a cash payment,the Cash account is debited.

The system of accounting in which every transaction affects at least two accounts is called the double-entry system.

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Filters