Question 1

The general journal does not have a column titled

Accepted Answer

A) Description. 
B) Account Balance. 
C) Date. 
D) Post.Ref. 
A) Description. 
B) Account Balance. 
C) Date. 
D) Post.Ref.

Question 2

A ledger account is an abbreviated version of a T account.

Accepted Answer

A) True 
 B)False

Question 3

Dividends are shown on both the income statement and the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 4

Purchase requests and purchase orders are economic events,and as such they affect a company's financial position,and are recognized in the accounting records.

Accepted Answer

A) True 
 B)False

Question 5

The primary purpose of the trial balance is to test the

Accepted Answer

A) recording of transactions. 
B) analysis of transactions. 
C) equality of debit and credit balances in the ledger. 
D) equality of debit and credit balances in the journal. 
A) recording of transactions. 
B) analysis of transactions. 
C) equality of debit and credit balances in the ledger. 
D) equality of debit and credit balances in the journal.

Question 6

Copper Company began operations in April and then engaged in the following transactions during April  If the balance in cash after these transactions is $165,000,how much cash was paid on account?

Accepted Answer

A) $43,000 
B) $57,000 
C) $1,000 
D) $21,000 
A) $43,000 
B) $57,000 
C) $1,000 
D) $21,000

Question 7

A decrease in the Retained Earnings account is recorded with a debit.

Accepted Answer

A) True 
 B)False

Question 8

The account most recently posted is determined most efficiently by referring to the

Accepted Answer

A) Post.Ref.column of the ledger. 
B) balance column of the ledger. 
C) date column of the general journal. 
D) Post.Ref.column of the general journal. 
A) Post.Ref.column of the ledger. 
B) balance column of the ledger. 
C) date column of the general journal. 
D) Post.Ref.column of the general journal.

Question 9

Provide explanations for the following related journal entries:

Accepted Answer

a.Common stock was sold to investors.
b.

Question 10

When the columns of the trial balance equal each other,it is still possible that errors may have occurred in recording and posting the transactions.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following accounts would be placed after the debit(s)in a journal entry?

Accepted Answer

A) Interest Payable,when it has been decreased. 
B) Accounts Receivable,when it has been decreased. 
C) Unearned Revenue,when it has been decreased. 
D) Dividends,when it has been increased. 
A) Interest Payable,when it has been decreased. 
B) Accounts Receivable,when it has been decreased. 
C) Unearned Revenue,when it has been decreased. 
D) Dividends,when it has been increased.

Question 12

In a journal entry,debits are always indented.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) Valuation. 
B) Recognition. 
C) Evaluation. 
D) Classification. 
A) Valuation. 
B) Recognition. 
C) Evaluation. 
D) Classification.

Question 14

The controller for Tires and More,Inc.has recorded the following transactions during the month: the company was established by selling 10,000 shares of stock to the public for $20,000 on the 1st of the month;the company recorded $36,000 of revenue for tires and services provided during the month;and expenses of $22,000 were recorded for the month.Additionally,on the last day of the month the company declared dividends of $2,000.What is the balance of Stockholders' Equity at the end of the month,and is the balance a debit or a credit?

Accepted Answer

A) $32,000 debit. 
B) $32,000 credit. 
C) $18,000 credit. 
D) $36,000 debit. 
A) $32,000 debit. 
B) $32,000 credit. 
C) $18,000 credit. 
D) $36,000 debit.

Question 15

Which of the following does not impact the Statement of Retained Earnings?

Accepted Answer

A) Common Stock 
B) Revenues 
C) Expenses 
D) Dividends 
A) Common Stock 
B) Revenues 
C) Expenses 
D) Dividends

Question 16

All expenses incurred by a business are paid immediately in cash.

Accepted Answer

A) True 
 B)False

Question 17

A $155 credit item is posted as a debit.The trial balance column totals therefore will differ by

Accepted Answer

A) $310 
B) $620 
C) $155 
D) $0 
A) $310 
B) $620 
C) $155 
D) $0

Question 18

Copper Company engaged in the following transactions during April 
 
-What is the balance in cash after these transactions?

Accepted Answer

A) $302,000 
B) $190,000 
C) $144,000 
D) $87,000 
A) $302,000 
B) $190,000 
C) $144,000 
D) $87,000

Question 19

The normal balance of an account is the side (debit or credit)used to decrease the account.

Accepted Answer

A) True 
 B)False

Question 20

Recording an account with a debit balance as a credit,or an account with a credit balance as a debit,will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

Accepted Answer

A) True 
 B)False

Exam 2: Measurement Concepts: Recording Business Transactions

The general journal does not have a column titled

A ledger account is an abbreviated version of a T account.

Dividends are shown on both the income statement and the statement of retained earnings.

Purchase requests and purchase orders are economic events,and as such they affect a company's financial position,and are recognized in the accounting records.

The primary purpose of the trial balance is to test the

Copper Company began operations in April and then engaged in the following transactions during April If the balance in cash after these transactions is $165,000,how much cash was paid on account?

A decrease in the Retained Earnings account is recorded with a debit.

The account most recently posted is determined most efficiently by referring to the

Provide explanations for the following related journal entries:

When the columns of the trial balance equal each other,it is still possible that errors may have occurred in recording and posting the transactions.

Which of the following accounts would be placed after the debit(s)in a journal entry?

In a journal entry,debits are always indented.

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

Which of the following does not impact the Statement of Retained Earnings?

All expenses incurred by a business are paid immediately in cash.

A $155 credit item is posted as a debit.The trial balance column totals therefore will differ by

Copper Company engaged in the following transactions during April -What is the balance in cash after these transactions?

The normal balance of an account is the side (debit or credit)used to decrease the account.

Recording an account with a debit balance as a credit,or an account with a credit balance as a debit,will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

Uses of Accounting Information and the Financial Statements

Measuring Business Income: Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long-Term Assets

Current Liabilities and Fair Value Accounting

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems: Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, including Target Costing and Transfer Pricing

Quality Management and Measurement

Accounting for Unincorporated Businesses

Accounting for Investments

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