Question 1

When a company pays an employee for work performed,it is considered an economic event that is not recorded as a transaction.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal?

Accepted Answer

A) A debit entry was recorded in the wrong account. 
B) A debit was entered in an account as a credit. 
C) The account balance was carried to the wrong column of the trial balance. 
D) The balance of an account was incorrectly computed. 
A) A debit entry was recorded in the wrong account. 
B) A debit was entered in an account as a credit. 
C) The account balance was carried to the wrong column of the trial balance. 
D) The balance of an account was incorrectly computed.

Question 3

Fair value is the exchange price of an actual or potential business transaction between market participants.

Accepted Answer

A) True 
 B)False

Question 4

Use this journal entry to answer the following question.
  Explain how the above journal entry relates to the measurement issues of (a)recognition, (b)valuation,and (c)classification.

Accepted Answer

a.The transaction occurred and was recog

Question 5

During the most recent month,Ostriker Company began operations with a cash balance of $0 and made made cash sales of $81,000.During this same time period,the company paid $32,000 in cash expenses.Additionally,the company purchased supplies on account,$34,000,made sales on account,$90,000,and received cash on the credit sales $52,000.
a.If cash at the end of the month totals $74,000,how much cash was paid on account?
b.What is the total amount still to be paid?
c.What is the total amount still to be received?

Accepted Answer

a.
@#IMG-DLM& b.$34,000 - 27,0

Question 6

After initially recording an asset at cost,fair value is

Accepted Answer

A) the price at which an asset could be sold in a current transaction between independent parties. 
B) the actual,or historical,price at which the asset was acquired. 
C) the easiest value used to measure and record assets. 
D) verifiable at all future dates by referring to the invoice price paid for the asset. 
A) the price at which an asset could be sold in a current transaction between independent parties. 
B) the actual,or historical,price at which the asset was acquired. 
C) the easiest value used to measure and record assets. 
D) verifiable at all future dates by referring to the invoice price paid for the asset.

Question 7

The timing of cash flows is critical to a company's ability to maintain adequate liquidity so that it can pay its bills on time.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not an example of egregious financial reporting frauds as discussed in the text?

Accepted Answer

A) Keeping the books open for a few days after the end of the reporting period. 
B) Transferring assets to an affiliate at more than their actual value. 
C) Recording as assets expenditures that should have been classfied as expenses. 
D) Recording a liability when title to merchandise passes to the purchaser. 
A) Keeping the books open for a few days after the end of the reporting period. 
B) Transferring assets to an affiliate at more than their actual value. 
C) Recording as assets expenditures that should have been classfied as expenses. 
D) Recording a liability when title to merchandise passes to the purchaser.

Question 9

When a withdrawal is made,the Cash account is debited and the Withdrawals account is credited.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a business event that is not considered a recordable transaction?

Accepted Answer

A) A company receives a product previously ordered. 
B) A company pays an employee for work performed. 
C) A customer inquires about the availability of a service. 
D) A customer purchases a service. 
A) A company receives a product previously ordered. 
B) A company pays an employee for work performed. 
C) A customer inquires about the availability of a service. 
D) A customer purchases a service.

Question 11

Which of the following errors will cause the trial balance to be out of balance?

Accepted Answer

A) Posting a debit to Land as a debit to Machinery. 
B) Placing a debit balance amount into the credit balance column of the ledger. 
C) Omitting an entire transaction. 
D) Incorrectly recording the purchase of land for cash as a debit to Cash and a credit to Land. 
A) Posting a debit to Land as a debit to Machinery. 
B) Placing a debit balance amount into the credit balance column of the ledger. 
C) Omitting an entire transaction. 
D) Incorrectly recording the purchase of land for cash as a debit to Cash and a credit to Land.

Question 12

A company records a transaction in which six months' rent is paid in advance.Which of the following journal entries records the transaction?

Accepted Answer

A) Prepaid Rent - Debit;Cash - Credit 
B) Rent Receivable - Debit;Cash - Credit 
C) Rent Revenue - Debit;Cash - Credit 
D) Rent Expense- Debit;Cash - Credit. 
A) Prepaid Rent - Debit;Cash - Credit 
B) Rent Receivable - Debit;Cash - Credit 
C) Rent Revenue - Debit;Cash - Credit 
D) Rent Expense- Debit;Cash - Credit.

Question 13

From the following alphabetical list of account balances,all of which are normal,for Ivy Maxx Company on July 31,2014,prepare a trial balance in proper form (the amount of Ivy Maxx,Withdrawals must be computed).

Accepted Answer

The answer of From the following alphabetical list of account...

Question 14

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 15

During the most recent month,Campbell Company began operations with a cash balance of $0 and made made cash sales of $162,000.During this same time period,the company paid $64,000 in cash expenses.Additionally,the company purchased supplies on account,$68,000,made sales on account,$180,000,and paid cash on account $12,000.
a.If cash at the end of the month totals $148,000,how much cash was received on account?
b.What is the total amount still to be paid?
c.What is the total amount still to be received?

Accepted Answer

a.
@#IMG-DLM&
b.$68,000 - 12,0

Question 16

A debit has an unfavorable effect on an account.

Accepted Answer

A) True 
 B)False

Question 17

Journal entries are typically posted to the ledger only at the end of the year.

Accepted Answer

A) True 
 B)False

When a company pays an employee for work performed,it is considered an economic event that is not recorded as a transaction.

Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal?

Fair value is the exchange price of an actual or potential business transaction between market participants.

Use this journal entry to answer the following question. Explain how the above journal entry relates to the measurement issues of (a)recognition, (b)valuation,and (c)classification.

After initially recording an asset at cost,fair value is

The timing of cash flows is critical to a company's ability to maintain adequate liquidity so that it can pay its bills on time.

Which of the following is not an example of egregious financial reporting frauds as discussed in the text?

When a withdrawal is made,the Cash account is debited and the Withdrawals account is credited.

Which of the following is a business event that is not considered a recordable transaction?

Which of the following errors will cause the trial balance to be out of balance?

A company records a transaction in which six months' rent is paid in advance.Which of the following journal entries records the transaction?

From the following alphabetical list of account balances,all of which are normal,for Ivy Maxx Company on July 31,2014,prepare a trial balance in proper form (the amount of Ivy Maxx,Withdrawals must be computed).

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

A debit has an unfavorable effect on an account.

Journal entries are typically posted to the ledger only at the end of the year.

Accounting Principles and the Financial Statements

Adjusting the Accounts

Completing the Accounting Cycle

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

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

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 and Capital Budgeting

Filters

Exam 2: Analyzing and Recording Business Transactions

When a company pays an employee for work performed,it is considered an economic event that is not recorded as a transaction.

Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal?

Fair value is the exchange price of an actual or potential business transaction between market participants.

Use this journal entry to answer the following question. Explain how the above journal entry relates to the measurement issues of (a)recognition, (b)valuation,and (c)classification.

After initially recording an asset at cost,fair value is

The timing of cash flows is critical to a company's ability to maintain adequate liquidity so that it can pay its bills on time.

Which of the following is not an example of egregious financial reporting frauds as discussed in the text?

When a withdrawal is made,the Cash account is debited and the Withdrawals account is credited.

Which of the following is a business event that is not considered a recordable transaction?

Which of the following errors will cause the trial balance to be out of balance?

A company records a transaction in which six months' rent is paid in advance.Which of the following journal entries records the transaction?

From the following alphabetical list of account balances,all of which are normal,for Ivy Maxx Company on July 31,2014,prepare a trial balance in proper form (the amount of Ivy Maxx,Withdrawals must be computed).

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

A debit has an unfavorable effect on an account.

Journal entries are typically posted to the ledger only at the end of the year.

Accounting Principles and the Financial Statements

Adjusting the Accounts

Completing the Accounting Cycle

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

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

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 and Capital Budgeting

Filters