Question 1

The normal balance of the Dividends account is a credit.

Accepted Answer

A) True 
 B)False

Question 2

An external event involves interaction between an entity and its environment.

Accepted Answer

A) True 
 B)False

Question 3

Several terms which represent components of a bookkeeping system are listed below.For each term,write a brief explanation of how that component is used in a bookkeeping system.Space is provided for your answer immediately below each term.

Accepted Answer

Brief explanations o

Question 4

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

Accepted Answer

A) Common Stock (Capital Stock) 
B) Equipment 
C) Unearned Subscription Revenue 
D) Notes Payable 
A) Common Stock (Capital Stock) 
B) Equipment 
C) Unearned Subscription Revenue 
D) Notes Payable

Question 5

The ____________________ principle says that,with a few exceptions,assets are not carried at market values,but at their original cost.

Accepted Answer

The answer of The ____________________ principle says that,with a few...

Question 6

The correct term for the process of transferring amounts from a book of original entry to specific assets,liabilities,revenues,expenses,and stockholders' equity items is

Accepted Answer

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

Question 7

Which of the following statements is true?

Accepted Answer

A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account. 
B) The posting of an amount recorded in the general journal can be verified by referring to the account number listed in the posting reference column on that line in the general journal. 
C) Business transactions are recorded first in the general ledger;then that information is transferred to the general journal. 
D) No explanation is needed for each entry in the general journal. 
A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account. 
B) The posting of an amount recorded in the general journal can be verified by referring to the account number listed in the posting reference column on that line in the general journal. 
C) Business transactions are recorded first in the general ledger;then that information is transferred to the general journal. 
D) No explanation is needed for each entry in the general journal.

Question 8

Land is purchased on credit.For this transaction,identify the effect on the accounting equation.

Accepted Answer

A) Assets increase and liabilities increase. 
B) Assets increase and owners' equity increases. 
C) Liabilities increase and owners' equity decreases. 
D) Liabilities decrease and assets decrease. 
A) Assets increase and liabilities increase. 
B) Assets increase and owners' equity increases. 
C) Liabilities increase and owners' equity decreases. 
D) Liabilities decrease and assets decrease.

Question 9

A bill is received for electric service;the charge for the electricity is recorded,but payment will be made later.For this transaction,identify the effect on the accounting equation.

Accepted Answer

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

Question 10

The general journal is often used to record repetitive transactions.

Accepted Answer

A) True 
 B)False

Question 11

A debit is a negative entry.

Accepted Answer

A) True 
 B)False

Question 12

The normal balance of revenue is a(n)____________________.

Accepted Answer

The answer of The normal balance of revenue is a(n)____________________....

Question 13

A trial balance is the listing of each account and its balance at a specific point in time.

Accepted Answer

A) True 
 B)False

Question 14

Squidly Products sold and delivered modems to Detail Solutions for $6,600 to be paid by Detail Solutions in three equal installments over the next three months.The journal entry made by Squidly to record this transaction will include:

Accepted Answer

A) A credit to Cash for $6,600. 
B) A debit to Accounts Receivable for $6,600. 
C) A debit to Accounts Receivable for $2,200. 
D) A debit to Sales Revenue for $6,600. 
A) A credit to Cash for $6,600. 
B) A debit to Accounts Receivable for $6,600. 
C) A debit to Accounts Receivable for $2,200. 
D) A debit to Sales Revenue for $6,600.

Question 15

Under the cost principle,assets are always carried at their current market value.

Accepted Answer

A) True 
 B)False

Question 16

Services are provided for customers who pay for the services immediately.For this transaction,identify the effect on the accounting equation.

Accepted Answer

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

Question 17

Under the double-entry system of accounting,every transaction is entered in at least two accounts on opposite sides of T accounts.

Accepted Answer

A) True 
 B)False

Question 18

The record used to accumulate monetary information for each individual asset,liability,stockholders' equity,revenue,and expense item is a(an)

Accepted Answer

A) Account 
B) General Journal 
C) General Ledger 
D) Chart of Accounts 
A) Account 
B) General Journal 
C) General Ledger 
D) Chart of Accounts

Question 19

Payment of a dividend increases both cash and stockholders' equity of the distributing business.

Accepted Answer

A) True 
 B)False

Question 20

Morton & Associates Use the following five transactions for Morton & Associates,Inc.to answer the question(s).
  See the transactions to Morton & Associates.
The journal entry to record the May 9 transaction will include a credit of $1,220 to

Accepted Answer

A) Furniture and Supplies 
B) Cash 
C) Accounts Payable 
D) Administrative Expenses 
A) Furniture and Supplies 
B) Cash 
C) Accounts Payable 
D) Administrative Expenses

The normal balance of the Dividends account is a credit.

An external event involves interaction between an entity and its environment.

Several terms which represent components of a bookkeeping system are listed below.For each term,write a brief explanation of how that component is used in a bookkeeping system.Space is provided for your answer immediately below each term.

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

The ____________________ principle says that,with a few exceptions,assets are not carried at market values,but at their original cost.

The correct term for the process of transferring amounts from a book of original entry to specific assets,liabilities,revenues,expenses,and stockholders' equity items is

Which of the following statements is true?

Land is purchased on credit.For this transaction,identify the effect on the accounting equation.

A bill is received for electric service;the charge for the electricity is recorded,but payment will be made later.For this transaction,identify the effect on the accounting equation.

The general journal is often used to record repetitive transactions.

A debit is a negative entry.

The normal balance of revenue is a(n)____________________.

A trial balance is the listing of each account and its balance at a specific point in time.

Squidly Products sold and delivered modems to Detail Solutions for $6,600 to be paid by Detail Solutions in three equal installments over the next three months.The journal entry made by Squidly to record this transaction will include:

Under the cost principle,assets are always carried at their current market value.

Services are provided for customers who pay for the services immediately.For this transaction,identify the effect on the accounting equation.

Under the double-entry system of accounting,every transaction is entered in at least two accounts on opposite sides of T accounts.

The record used to accumulate monetary information for each individual asset,liability,stockholders' equity,revenue,and expense item is a(an)

Payment of a dividend increases both cash and stockholders' equity of the distributing business.

Morton & Associates Use the following five transactions for Morton & Associates,Inc.to answer the question(s). See the transactions to Morton & Associates. The journal entry to record the May 9 transaction will include a credit of $1,220 to

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

Exam 3: Processing Accounting Information

The normal balance of the Dividends account is a credit.

An external event involves interaction between an entity and its environment.

Several terms which represent components of a bookkeeping system are listed below.For each term,write a brief explanation of how that component is used in a bookkeeping system.Space is provided for your answer immediately below each term.

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

The ____________________ principle says that,with a few exceptions,assets are not carried at market values,but at their original cost.

The correct term for the process of transferring amounts from a book of original entry to specific assets,liabilities,revenues,expenses,and stockholders' equity items is

Which of the following statements is true?

Land is purchased on credit.For this transaction,identify the effect on the accounting equation.

A bill is received for electric service;the charge for the electricity is recorded,but payment will be made later.For this transaction,identify the effect on the accounting equation.

The general journal is often used to record repetitive transactions.

A debit is a negative entry.

The normal balance of revenue is a(n)____________________.

A trial balance is the listing of each account and its balance at a specific point in time.

Squidly Products sold and delivered modems to Detail Solutions for $6,600 to be paid by Detail Solutions in three equal installments over the next three months.The journal entry made by Squidly to record this transaction will include:

Under the cost principle,assets are always carried at their current market value.

Services are provided for customers who pay for the services immediately.For this transaction,identify the effect on the accounting equation.

Under the double-entry system of accounting,every transaction is entered in at least two accounts on opposite sides of T accounts.

The record used to accumulate monetary information for each individual asset,liability,stockholders' equity,revenue,and expense item is a(an)

Payment of a dividend increases both cash and stockholders' equity of the distributing business.

Morton & Associates Use the following five transactions for Morton & Associates,Inc.to answer the question(s). See the transactions to Morton & Associates. The journal entry to record the May 9 transaction will include a credit of $1,220 to

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