Question 1

_______________________ are a distribution of net income for the period,not a determinant of net income as are expenses.

Accepted Answer

The answer of _______________________ are a distribution of net income...

Question 2

Several events are listed below.Indicate whether each event is an external event that should be recorded as a transaction,an internal event which should be recorded as a transaction,or an event which should not be recorded.Use the following identification codes for your answers:
E - External event to be recorded as a transaction
I - Internal event to be recorded as a transaction
NR - An event which should NOT be recorded

Accepted Answer

The answer of Several events are listed below.Indicate whether each...

Question 3

Which of the following transactions does not affect the total assets of Horizon Sailing Corp.?

Accepted Answer

A) A bill is received for the telephone service used by Horizon Sailing during the past month. 
B) Dividends are paid by Horizon Sailing. 
C) Customers are billed for sales made on credit by Horizon Sailing. 
D) A new computer is purchased on credit by Horizon Sailing. 
A) A bill is received for the telephone service used by Horizon Sailing during the past month. 
B) Dividends are paid by Horizon Sailing. 
C) Customers are billed for sales made on credit by Horizon Sailing. 
D) A new computer is purchased on credit by Horizon Sailing.

Question 4

Which of the following entries causes a decrease in assets and in net income?

Accepted Answer

A) The entry to record the payment of utilities with cash. 
B) The entry to record the payment of rent for three months in advance. 
C) The entry to record accrued wages payable. 
D) The entry to record revenue earned but not yet received. 
A) The entry to record the payment of utilities with cash. 
B) The entry to record the payment of rent for three months in advance. 
C) The entry to record accrued wages payable. 
D) The entry to record revenue earned but not yet received.

Question 5

Which of the following statements is false?

Accepted Answer

A) Checks and deposit slips are the main source of documents backing up the bank statement. 
B) Retailers use cash register tapes to recognize sales. 
C) Stock certificates are evidence of being a creditor of the company. 
D) Time cards are used as the source of information to record wages. 
A) Checks and deposit slips are the main source of documents backing up the bank statement. 
B) Retailers use cash register tapes to recognize sales. 
C) Stock certificates are evidence of being a creditor of the company. 
D) Time cards are used as the source of information to record wages.

Question 6

There are three elements to the accounting equation: assets,liabilities,and stockholders' equity.Below are five possible types of transactions.For each of these five types,write descriptions of a example that would illustrate this type of transaction.

Accepted Answer

Student answers may

Question 7

Transactions are recorded in the general journal in:

Accepted Answer

A) Alphabetical order. 
B) Account number order. 
C) Chronological order. 
D) Financial statement order. 
A) Alphabetical order. 
B) Account number order. 
C) Chronological order. 
D) Financial statement order.

Question 8

If the sum of the debits and credits in a trial balance is not equal,then

Accepted Answer

A) there is no concern because the two amounts are not meant to be equal. 
B) the chart of accounts also does not balance. 
C) it is safe to proceed with the preparation of financial statements. 
D) most likely an error was made in posting journal entries to the general ledger or in preparing the trial balance. 
A) there is no concern because the two amounts are not meant to be equal. 
B) the chart of accounts also does not balance. 
C) it is safe to proceed with the preparation of financial statements. 
D) most likely an error was made in posting journal entries to the general ledger or in preparing the trial balance.

Question 9

All of the following accounts have normal debit balances except

Accepted Answer

A) Accounts Receivable 
B) Dividends 
C) Office Supplies Expense 
D) Sales 
A) Accounts Receivable 
B) Dividends 
C) Office Supplies Expense 
D) Sales

Question 10

Wolfe Inc. Wolfe Inc.reports these account balances at January 1,2014:
  See the account balances for Wolfe Inc.
On January 31,Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.In Wolfe's trial balance prepared on January 1,2014,the total of the credit column is:

Accepted Answer

A) $182,000 
B) $286,000 
C) $196,000 
D) $166,000 
A) $182,000 
B) $286,000 
C) $196,000 
D) $166,000

Question 11

Given a current ratio of 5 to 3,what is the effect of paying a supplier within 30 days of the purchase?

Accepted Answer

A) The current ratio would increase. 
B) The current ratio would decrease. 
C) The current ratio would remain the same. 
D) Unable to determine. 
A) The current ratio would increase. 
B) The current ratio would decrease. 
C) The current ratio would remain the same. 
D) Unable to determine.

Question 12

Which of the following would be a case where an event as a transaction is not supported by a source document?

Accepted Answer

A) a purchase of inventory on credit 
B) a cash sale 
C) the financial consequences of a fire loss 
D) recording payroll 
A) a purchase of inventory on credit 
B) a cash sale 
C) the financial consequences of a fire loss 
D) recording payroll

Question 13

Which pair of accounts has the same set of rules for debit and credit entries?

Accepted Answer

A) Service Revenue and Rent Expense 
B) Dividends and Retained Earnings 
C) Equipment and Salaries Expense 
D) Accounts Receivable and Accounts Payable 
A) Service Revenue and Rent Expense 
B) Dividends and Retained Earnings 
C) Equipment and Salaries Expense 
D) Accounts Receivable and Accounts Payable

Question 14

If the landlord has rent _________,then the tenant has rent _________.

Accepted Answer

A) revenue;revenue 
B) revenue;expense 
C) expense;revenue 
D) expense;expense 
A) revenue;revenue 
B) revenue;expense 
C) expense;revenue 
D) expense;expense

Question 15

From an accounting perspective,explain how an external event differs from an internal event and give an example of each.

Accepted Answer

Both external and internal events affect

Question 16

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 1 transaction will include a debit of $800 to

Accepted Answer

A) Sales Revenue 
B) Accounts Receivable 
C) Cash 
D) Retained Earnings 
A) Sales Revenue 
B) Accounts Receivable 
C) Cash 
D) Retained Earnings

Question 17

An internal or external event must be ____________________ to be recognized.

Accepted Answer

The answer of An internal or external event must be...

Question 18

The following list of accounts was taken from the general ledger of Bassett Corporation on December 31,2014.The bookkeeper thought it would be helpful if the accounts were arranged in alphabetical order.Each account contains the balance that is normal for that type of account;for example,Cash normally has a debit balance.Prepare a trial balance as of this date with the accounts arranged in the following order: (1)assets, (2)liabilities, (3)stockholders' equity, (4)revenues, (5)expenses,and (6)dividends.

Accepted Answer

The answer of The following list of accounts was taken...

Question 19

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is a(an)

Accepted Answer

A) Account 
B) General Journal 
C) Trial Balance 
D) Chart of Accounts 
A) Account 
B) General Journal 
C) Trial Balance 
D) Chart of Accounts

Question 20

If a company purchases equipment by issuing a note payable,its total assets will not change.

Accepted Answer

A) True 
 B)False

_______________________ are a distribution of net income for the period,not a determinant of net income as are expenses.

Which of the following transactions does not affect the total assets of Horizon Sailing Corp.?

Which of the following entries causes a decrease in assets and in net income?

Which of the following statements is false?

There are three elements to the accounting equation: assets,liabilities,and stockholders' equity.Below are five possible types of transactions.For each of these five types,write descriptions of a example that would illustrate this type of transaction.

Transactions are recorded in the general journal in:

If the sum of the debits and credits in a trial balance is not equal,then

All of the following accounts have normal debit balances except

Wolfe Inc. Wolfe Inc.reports these account balances at January 1,2014: See the account balances for Wolfe Inc. On January 31,Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.In Wolfe's trial balance prepared on January 1,2014,the total of the credit column is:

Given a current ratio of 5 to 3,what is the effect of paying a supplier within 30 days of the purchase?

Which of the following would be a case where an event as a transaction is not supported by a source document?

Which pair of accounts has the same set of rules for debit and credit entries?

If the landlord has rent _,then the tenant has rent _.

From an accounting perspective,explain how an external event differs from an internal event and give an example of each.

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 1 transaction will include a debit of $800 to

An internal or external event must be ____________________ to be recognized.

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is a(an)

If a company purchases equipment by issuing a note payable,its total assets will not change.

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

_______________________ are a distribution of net income for the period,not a determinant of net income as are expenses.

Which of the following transactions does not affect the total assets of Horizon Sailing Corp.?

Which of the following entries causes a decrease in assets and in net income?

Which of the following statements is false?

There are three elements to the accounting equation: assets,liabilities,and stockholders' equity.Below are five possible types of transactions.For each of these five types,write descriptions of a example that would illustrate this type of transaction.

Transactions are recorded in the general journal in:

If the sum of the debits and credits in a trial balance is not equal,then

All of the following accounts have normal debit balances except

Wolfe Inc. Wolfe Inc.reports these account balances at January 1,2014: See the account balances for Wolfe Inc. On January 31,Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable.In Wolfe's trial balance prepared on January 1,2014,the total of the credit column is:

Given a current ratio of 5 to 3,what is the effect of paying a supplier within 30 days of the purchase?

Which of the following would be a case where an event as a transaction is not supported by a source document?

Which pair of accounts has the same set of rules for debit and credit entries?

If the landlord has rent _________,then the tenant has rent _________.

From an accounting perspective,explain how an external event differs from an internal event and give an example of each.

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 1 transaction will include a debit of $800 to

An internal or external event must be ____________________ to be recognized.

A list of all accounts and their balances which is used to prove the equality of debits and credits as of a specific date is a(an)

If a company purchases equipment by issuing a note payable,its total assets will not change.

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

If the landlord has rent _,then the tenant has rent _.