Question 1

The correct term for an entry made to the left side of an account is

Accepted Answer

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

Question 2

The ledgers are an example of an accounting book of original entry.

Accepted Answer

A) True 
 B)False

Question 3

The accounting equation must balance after each transaction.

Accepted Answer

A) True 
 B)False

Question 4

Your bookkeeper is off for the day and you are trying to figure out what her last entry in the journal could be for.Unfortunately,she only recorded the debit side of the transaction as $4,400 to Accounts Payable.It is possible that this debit could correspond to:

Accepted Answer

A) A purchase of equipment costing $4,400 on credit. 
B) A payment of $4,400 to a supplier to settle a balance due. 
C) A $4,400 sale to a customer. 
D) A $4,400 issuance of the company's capital stock. 
A) A purchase of equipment costing $4,400 on credit. 
B) A payment of $4,400 to a supplier to settle a balance due. 
C) A $4,400 sale to a customer. 
D) A $4,400 issuance of the company's capital stock.

Question 5

A credit means that

Accepted Answer

A) the event has an effect on the right side of an account. 
B) the event is unfavorable. 
C) the event is favorable. 
D) the event always decreases the account. 
A) the event has an effect on the right side of an account. 
B) the event is unfavorable. 
C) the event is favorable. 
D) the event always decreases the account.

Question 6

Every accounting transaction affects both the balance sheet and the income statement.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements best describes one effect of recognizing expenses incurred by a business entity?

Accepted Answer

A) Assets will increase. 
B) Liabilities will decrease. 
C) Stockholders' equity will increase. 
D) Stockholders' equity will decrease. 
A) Assets will increase. 
B) Liabilities will decrease. 
C) Stockholders' equity will increase. 
D) Stockholders' equity will decrease.

Question 8

Only events that can be measured will be reflected in the journal entries.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are external events (transactions)except for

Accepted Answer

A) a department store recognizing losses from shoplifting. 
B) a department store running ads in a local newspaper. 
C) a department store purchasing merchandise from a clothing manufacturer. 
D) a department store selling clothing to customers on credit. 
A) a department store recognizing losses from shoplifting. 
B) a department store running ads in a local newspaper. 
C) a department store purchasing merchandise from a clothing manufacturer. 
D) a department store selling clothing to customers on credit.

Question 10

One effect on the accounting equation when a firm borrows money is

Accepted Answer

A) Stockholders' equity decreases. 
B) Assets increase. 
C) Liabilities decrease. 
D) Assets decrease. 
A) Stockholders' equity decreases. 
B) Assets increase. 
C) Liabilities decrease. 
D) Assets decrease.

Question 11

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 31 transaction will include a credit to

Accepted Answer

A) Salaries Expense 
B) Salaries Payable 
C) Prepaid Salaries 
D) Cash 
A) Salaries Expense 
B) Salaries Payable 
C) Prepaid Salaries 
D) Cash

Question 12

Services are provided for customers who are sent bills for the amount they owe.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 13

Prepare the journal entry to record each of the following independent transactions.(Use
the number of the transaction in place of a date for identification purposes. )
1.Services provided for cash of $7,050.
2.Purchase of equipment for cash of $2,240.
3.Services provided on account of $530.
4.Purchases of supplies on account for $365.

Accepted Answer

The answer of Prepare the journal entry to record each...

Question 14

Payment is received from customers who were billed earlier for services provided for them.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) There is no effect on the accounting equation as one asset account increases while another asset account decreases. 
A) Assets increase and liabilities increase. 
B) Assets increase and stockholders' equity increases. 
C) Liabilities increase and stockholders' equity decreases. 
D) There is no effect on the accounting equation as one asset account increases while another asset account decreases.

Question 15

A trial balance is a(an)

Accepted Answer

A) optional financial statement used only by accountants. 
B) device used to prove the equality of debits and credits in the general ledger. 
C) list of accounts and their balances taken from the chart of accounts. 
D) financial statement which can be used in place of a balance sheet. 
A) optional financial statement used only by accountants. 
B) device used to prove the equality of debits and credits in the general ledger. 
C) list of accounts and their balances taken from the chart of accounts. 
D) financial statement which can be used in place of a balance sheet.

Question 16

Explain what the chart of accounts is and how its numbering system works.

Accepted Answer

Companies need a way to organize the lar

Question 17

The credit side of an account is the right side while the debit side is the left side.

Accepted Answer

A) True 
 B)False

Question 18

A debit entry increases assets,decreases liabilities,or decreases stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 19

One effect on the accounting equation when a firm lends money is

Accepted Answer

A) stockholders' equity decreases. 
B) liabilities decrease. 
C) liabilities increase. 
D) total assets remain the same. 
A) stockholders' equity decreases. 
B) liabilities decrease. 
C) liabilities increase. 
D) total assets remain the same.

Question 20

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following question(s).
      Read the information for Parachute Country Club.
On which date did the country club make a credit sale of club memberships?

Accepted Answer

A) August 2 
B) August 3 
C) August 5 
D) August 7 
A) August 2 
B) August 3 
C) August 5 
D) August 7

The correct term for an entry made to the left side of an account is

The ledgers are an example of an accounting book of original entry.

The accounting equation must balance after each transaction.

Your bookkeeper is off for the day and you are trying to figure out what her last entry in the journal could be for.Unfortunately,she only recorded the debit side of the transaction as $4,400 to Accounts Payable.It is possible that this debit could correspond to:

A credit means that

Every accounting transaction affects both the balance sheet and the income statement.

Which of the following statements best describes one effect of recognizing expenses incurred by a business entity?

Only events that can be measured will be reflected in the journal entries.

All of the following are external events (transactions)except for

One effect on the accounting equation when a firm borrows money is

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 31 transaction will include a credit to

Services are provided for customers who are sent bills for the amount they owe.For this transaction,identify the effect on the accounting equation.

Payment is received from customers who were billed earlier for services provided for them.For this transaction,identify the effect on the accounting equation.

A trial balance is a(an)

Explain what the chart of accounts is and how its numbering system works.

The credit side of an account is the right side while the debit side is the left side.

A debit entry increases assets,decreases liabilities,or decreases stockholders' equity.

One effect on the accounting equation when a firm lends money is

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following question(s). Read the information for Parachute Country Club. On which date did the country club make a credit sale of club memberships?

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 correct term for an entry made to the left side of an account is

The ledgers are an example of an accounting book of original entry.

The accounting equation must balance after each transaction.

Your bookkeeper is off for the day and you are trying to figure out what her last entry in the journal could be for.Unfortunately,she only recorded the debit side of the transaction as $4,400 to Accounts Payable.It is possible that this debit could correspond to:

A credit means that

Every accounting transaction affects both the balance sheet and the income statement.

Which of the following statements best describes one effect of recognizing expenses incurred by a business entity?

Only events that can be measured will be reflected in the journal entries.

All of the following are external events (transactions)except for

One effect on the accounting equation when a firm borrows money is

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 31 transaction will include a credit to

Services are provided for customers who are sent bills for the amount they owe.For this transaction,identify the effect on the accounting equation.

Payment is received from customers who were billed earlier for services provided for them.For this transaction,identify the effect on the accounting equation.

A trial balance is a(an)

Explain what the chart of accounts is and how its numbering system works.

The credit side of an account is the right side while the debit side is the left side.

A debit entry increases assets,decreases liabilities,or decreases stockholders' equity.

One effect on the accounting equation when a firm lends money is

Parachute Country Club Use the selected accounts for Parachute Country Club presented below to answer the following question(s). Read the information for Parachute Country Club. On which date did the country club make a credit sale of club memberships?

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