Question 1

A company had total assets of $350,000 and total liabilities of $101,500 and total equity of $248,500. Calculate its debt ratio.

Accepted Answer

$101,500/$

Question 2

Withdrawals by the owner are a business expense.

Accepted Answer

A) True 
 B)False

Question 3

The right side of a T-account is a(n):

Accepted Answer

A)  Debit. 
B)  Increase. 
C)  Credit. 
D)  Decrease. 
E)  Account balance. 
A)  Debit. 
B)  Increase. 
C)  Credit. 
D)  Decrease. 
E)  Account balance.

Question 4

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year:
If Josephine invested an additional $12,000 in the business during the year, but withdrew no assets during the year, what was the amount of net income earned by Josephine's Bakery?

Accepted Answer

Beginning owner's equity = $114,000 - $6

Question 5

Land and buildings are generally recorded in the same ledger account.

Accepted Answer

A) True 
 B)False

Question 6

A debit is used to record:

Accepted Answer

A)  A decrease in an asset account. 
B)  A decrease in an expense account. 
C)  An increase in a revenue account. 
D)  An increase in the balance of an owner's capital account. 
E)  An increase in the balance of the owner's withdrawals account. 
A)  A decrease in an asset account. 
B)  A decrease in an expense account. 
C)  An increase in a revenue account. 
D)  An increase in the balance of an owner's capital account. 
E)  An increase in the balance of the owner's withdrawals account.

Question 7

When a company provides services for which cash will not be received until some future date, the company should record the amount charged as unearned revenue.

Accepted Answer

A) True 
 B)False

Question 8

The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space provided next to each account write the letters, IS or BS, that identify the statement on which the account appears.

Accepted Answer

The answer of The following accounts appear on either the...

Question 9

The first step in the processing of a transaction is to analyze the transaction and source documents.

Accepted Answer

A) True 
 B)False

Question 10

___________________ are promises of payment from customers to sellers.

Accepted Answer

The answer of ___________________ are promises of payment from customers...

Question 11

If the Debit and Credit column totals of a trial balance are equal, then:

Accepted Answer

A)  All transactions have been recorded correctly. 
B)  All entries from the journal have been posted to the ledger correctly. 
C)  All ledger account balances are correct. 
D)  The total debit entries and total credit entries are equal. 
E)  The balance sheet would be correct. 
A)  All transactions have been recorded correctly. 
B)  All entries from the journal have been posted to the ledger correctly. 
C)  All ledger account balances are correct. 
D)  The total debit entries and total credit entries are equal. 
E)  The balance sheet would be correct.

Question 12

A revenue account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 13

Leonard Matson completed these transactions during December of the current year:
Prepare general journal entries to record these transactions.

Accepted Answer

The answer of Leonard Matson completed these transactions during December...

Question 14

Match the following definitions and terms by placing the letter that identifies the best definition in the blank space next to the term.

Accepted Answer

The answer of Match the following definitions and terms by...

Question 15

Stride Along has total assets of $385 million. Its total liabilities are $100 million and its equity is $285 million. Calculate its debt ratio.

Accepted Answer

A)  35.1%. 
B)  26.0%. 
C)  38.5%. 
D)  28.5%. 
E)  58.8%. 
A)  35.1%. 
B)  26.0%. 
C)  38.5%. 
D)  28.5%. 
E)  58.8%.

Question 16

At the end of the current year, Norman Company reported total liabilities of $300,000 and total equity of $100,000. The company's debt ratio on the last year-end was:

Accepted Answer

A)  300%. 
B)  33.3% 
C)  75.0%. 
D)  $400,000. 
E)  Cannot be determined from the information provided. 
A)  300%. 
B)  33.3% 
C)  75.0%. 
D)  $400,000. 
E)  Cannot be determined from the information provided.

Question 17

For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, and (2) identify the normal balance of the account.

Accepted Answer

The answer of For each of the following (1) identify...

Question 18

Credits always increase account balances.

Accepted Answer

A) True 
 B)False

Question 19

Explain the difference between a ledger and a chart of accounts.

Accepted Answer

A ledger is a record containing all of t

Question 20

If a company provides services to a customer on credit the selling company should credit Accounts Receivable.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing and Recording Transactions

A company had total assets of $350,000 and total liabilities of $101,500 and total equity of $248,500. Calculate its debt ratio.

Withdrawals by the owner are a business expense.

The right side of a T-account is a(n):

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year: If Josephine invested an additional $12,000 in the business during the year, but withdrew no assets during the year, what was the amount of net income earned by Josephine's Bakery?

Land and buildings are generally recorded in the same ledger account.

A debit is used to record:

When a company provides services for which cash will not be received until some future date, the company should record the amount charged as unearned revenue.

The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space provided next to each account write the letters, IS or BS, that identify the statement on which the account appears.

The first step in the processing of a transaction is to analyze the transaction and source documents.

___________________ are promises of payment from customers to sellers.

If the Debit and Credit column totals of a trial balance are equal, then:

A revenue account normally has a debit balance.

Leonard Matson completed these transactions during December of the current year: Prepare general journal entries to record these transactions.

Match the following definitions and terms by placing the letter that identifies the best definition in the blank space next to the term.

Stride Along has total assets of $385 million. Its total liabilities are $100 million and its equity is $285 million. Calculate its debt ratio.

At the end of the current year, Norman Company reported total liabilities of $300,000 and total equity of $100,000. The company's debt ratio on the last year-end was:

For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, and (2) identify the normal balance of the account.

Credits always increase account balances.

Explain the difference between a ledger and a chart of accounts.

If a company provides services to a customer on credit the selling company should credit Accounts Receivable.

Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Long-Term Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

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