Question 1

What type of account is increased with a debit but is a decrease to retained earnings?

Accepted Answer

A) Liability 
B) Asset 
C) Revenue 
D) Expense 
A) Liability 
B) Asset 
C) Revenue 
D) Expense

Question 2

Credits are always on the _____________________ side of the T account.

Accepted Answer

The answer of Credits are always on the _____________________ side...

Question 3

Various transactions may change the amount and composition of the assets and liabilities,but the ____________________________ must balance after each transaction.

Accepted Answer

The answer of Various transactions may change the amount and...

Question 4

All of the following events (transactions)would be identified from standard source documents except for

Accepted Answer

A) freight charges for merchandise purchased from suppliers. 
B) the amount to be paid to settle a lawsuit for discrimination in hiring employees. 
C) wages to be paid to hourly employees. 
D) commissions earned by sales employees. 
A) freight charges for merchandise purchased from suppliers. 
B) the amount to be paid to settle a lawsuit for discrimination in hiring employees. 
C) wages to be paid to hourly employees. 
D) commissions earned by sales employees.

Question 5

The _________________________ is the file or book that contains all of a company's accounts.

Accepted Answer

The answer of The _________________________ is the file or book...

Question 6

The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded by:

Accepted Answer

A) A debit of $2,600 to Office Equipment,a debit of $1,200 to Accounts Receivable,and a credit of $1,400 to Accounts Payable. 
B) A debit of $1,400 to Accounts Receivable,a debit of $1,200 to Cash,and a credit of $2,600 to Office Equipment. 
C) A debit of $2,600 to Office Equipment,a credit of $1,200 to Cash,and a credit of $1,400 to Accounts Payable. 
D) A debit of $2,600 to Office Equipment,a credit of $1,200 to Cash,and a credit of $1,400 to Accounts Receivable. 
A) A debit of $2,600 to Office Equipment,a debit of $1,200 to Accounts Receivable,and a credit of $1,400 to Accounts Payable. 
B) A debit of $1,400 to Accounts Receivable,a debit of $1,200 to Cash,and a credit of $2,600 to Office Equipment. 
C) A debit of $2,600 to Office Equipment,a credit of $1,200 to Cash,and a credit of $1,400 to Accounts Payable. 
D) A debit of $2,600 to Office Equipment,a credit of $1,200 to Cash,and a credit of $1,400 to Accounts Receivable.

Question 7

Which of the following statements is true?

Accepted Answer

A) If a debit entry is made to an account in the general journal,the same account will receive a credit entry when the amount is posted to the general ledger 
B) If all transactions are correctly posted to the general ledger,the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. 
C) Posting occurs when numbers in the general ledger accounts are transferred to the general journal 
D) If the sum of the debit balances equals the sum of the credit balances then there were no mistakes made in the posting process 
A) If a debit entry is made to an account in the general journal,the same account will receive a credit entry when the amount is posted to the general ledger 
B) If all transactions are correctly posted to the general ledger,the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. 
C) Posting occurs when numbers in the general ledger accounts are transferred to the general journal 
D) If the sum of the debit balances equals the sum of the credit balances then there were no mistakes made in the posting process

Question 8

Which of the following accounts is increased by a credit entry?

Accepted Answer

A) Sales Revenue 
B) Salary Expense 
C) Accounts Receivable 
D) Dividends 
A) Sales Revenue 
B) Salary Expense 
C) Accounts Receivable 
D) Dividends

Question 9

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

Accepted Answer

A) Double-entry system 
B) Debit 
C) Credit 
D) Journalizing 
A) Double-entry system 
B) Debit 
C) Credit 
D) Journalizing

Question 10

The following transactions occurred during March,the first month of operations for Canyon Products,Inc.: 1.Issued 50,000 shares of capital stock in exchange for $600,000 cash
2)Purchased land for $400,000,using a $150,000 cash down payment and signing a note payable for the balance.
3)Made a $60,000 cash payment on the note payable from the purchase of land.
4)Purchased equipment on credit from Burton,Inc.for $63,000.
What is the balance in the Cash account at the end of March?

Accepted Answer

A) $810,000 
B) $210,000 
C) $600,000 
D) $390,000 
A) $810,000 
B) $210,000 
C) $600,000 
D) $390,000

Question 11

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger,it must be recorded

Accepted Answer

A) as a debit to that account in the general ledger. 
B) as a credit to that account in the general ledger. 
C) in sum only,without any regard for debit or credit,since the general ledger accounts do not have spaces for debit and credit entries. 
D) cannot be determined without further information. 
A) as a debit to that account in the general ledger. 
B) as a credit to that account in the general ledger. 
C) in sum only,without any regard for debit or credit,since the general ledger accounts do not have spaces for debit and credit entries. 
D) cannot be determined without further information.

Question 12

Dividends are not a(n)__________________ but a direct reduction of retained earnings.

Accepted Answer

The answer of Dividends are not a(n)__________________ but a direct...

Question 13

Several transactions are listed below,with the accounting equation stated to the right side of each.Use the following identification codes to indicate the effects of each transaction on the accounting equation.Write your answers in the space provided under the accounting equation.You need an identification code for each element of the accounting equation.An example is given before the first transaction.

Accepted Answer

The answer of Several transactions are listed below,with the accounting...

Question 14

The left or debit side of a liability account is used to record ____________________.

Accepted Answer

The answer of The left or debit side of a...

Question 15

A purchase of raw materials from a supplier is a(n)____________________ event.

Accepted Answer

The answer of A purchase of raw materials from a...

Question 16

The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is a(an).

Accepted Answer

A) Double-entry system 
B) Debit 
C) Credit 
D) Journalizing 
A) Double-entry system 
B) Debit 
C) Credit 
D) Journalizing

Question 17

Listed below are selected accounts from the financial statements of Bargain Mart for the year ended December 31,2014.In the blank space provided for each account,indicate what type of account it is,its normal balance,and the debit/credit rules for increasing and decreasing it.Use the following abbreviations for your answers:

Accepted Answer

The answer of Listed below are selected accounts from the...

Question 18

Which of the following statements regarding the activities of Marcus Corp.is true?

Accepted Answer

A) Revenues decrease Marcus' stockholders' equity. 
B) Expenses increase Marcus' stockholders' equity. 
C) Expenses decrease Marcus' stockholders' equity. 
D) None of these answer choices is correct. 
A) Revenues decrease Marcus' stockholders' equity. 
B) Expenses increase Marcus' stockholders' equity. 
C) Expenses decrease Marcus' stockholders' equity. 
D) None of these answer choices is correct.

Question 19

A trial balance can be distributed to stockholders in place of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 20

Owners of Thibeau Industries,Carl and Stefanie,are sent a dividend check from the company.For this transaction,what is the effect on the accounting equation for Thibeau Industries?

Accepted Answer

A) Assets decrease and stockholders' equity decreases. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities increase and stockholders' equity decreases 
A) Assets decrease and stockholders' equity decreases. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) Liabilities increase and stockholders' equity decreases

What type of account is increased with a debit but is a decrease to retained earnings?

Credits are always on the _____________________ side of the T account.

Various transactions may change the amount and composition of the assets and liabilities,but the ____________________________ must balance after each transaction.

All of the following events (transactions)would be identified from standard source documents except for

The _________________________ is the file or book that contains all of a company's accounts.

The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded by:

Which of the following statements is true?

Which of the following accounts is increased by a credit entry?

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger,it must be recorded

Dividends are not a(n)__________________ but a direct reduction of retained earnings.

The left or debit side of a liability account is used to record ____________________.

A purchase of raw materials from a supplier is a(n)____________________ event.

The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is a(an).

Which of the following statements regarding the activities of Marcus Corp.is true?

A trial balance can be distributed to stockholders in place of the balance sheet.

Owners of Thibeau Industries,Carl and Stefanie,are sent a dividend check from the company.For this transaction,what is the effect on the accounting equation for Thibeau Industries?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

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Exam 3: Processing Accounting Information

What type of account is increased with a debit but is a decrease to retained earnings?

Credits are always on the _____________________ side of the T account.

Various transactions may change the amount and composition of the assets and liabilities,but the ____________________________ must balance after each transaction.

All of the following events (transactions)would be identified from standard source documents except for

The _________________________ is the file or book that contains all of a company's accounts.

The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded by:

Which of the following statements is true?

Which of the following accounts is increased by a credit entry?

The correct term for the process of recording the economic effects of business transactions in a book of original entry is

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger,it must be recorded

Dividends are not a(n)__________________ but a direct reduction of retained earnings.

The left or debit side of a liability account is used to record ____________________.

A purchase of raw materials from a supplier is a(n)____________________ event.

The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is a(an).

Which of the following statements regarding the activities of Marcus Corp.is true?

A trial balance can be distributed to stockholders in place of the balance sheet.

Owners of Thibeau Industries,Carl and Stefanie,are sent a dividend check from the company.For this transaction,what is the effect on the accounting equation for Thibeau Industries?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters