Question 1

Posting is the transfer of journal entry information to the ledger.

Accepted Answer

A) True 
 B)False

Question 2

An income statement reports the revenues earned less expenses incurred by a business over a period of time.

Accepted Answer

A) True 
 B)False

Question 3

During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance?

Accepted Answer

A)  $700. 
B)  $1,100. 
C)  $2,900. 
D)  $0. 
E)  $4,300. 
A)  $700. 
B)  $1,100. 
C)  $2,900. 
D)  $0. 
E)  $4,300.

Question 4

____________________________ and _____________________ are the starting points for the analyzing and recording process.

Accepted Answer

Business t

Question 5

The third step in the analyzing and recording process is to post the information to ________________________.

Accepted Answer

The answer of The third step in the analyzing and...

Question 6

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):

Accepted Answer

A)  Journal. 
B)  Posting. 
C)  Trial balance. 
D)  Account. 
E)  Chart of accounts. 
A)  Journal. 
B)  Posting. 
C)  Trial balance. 
D)  Account. 
E)  Chart of accounts.

Question 7

Items such as sales tickets, bank statements, checks, and purchase orders are source documents.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is incorrect?

Accepted Answer

A)  Higher financial leverage involves higher risk. 
B)  Risk is higher if a company has more liabilities. 
C)  Risk is higher if a company has higher assets. 
D)  The debt ratio is one measure of financial risk. 
E)  Lower financial leverage involves lower risk. 
A)  Higher financial leverage involves higher risk. 
B)  Risk is higher if a company has more liabilities. 
C)  Risk is higher if a company has higher assets. 
D)  The debt ratio is one measure of financial risk. 
E)  Lower financial leverage involves lower risk.

Question 9

A company sends a $1,500 bill to a customer for delivery services rendered. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of A company sends a $1,500 bill to...

Question 10

A ___________________ is a record containing all accounts for a company along with their balances.

Accepted Answer

The answer of A ___________________ is a record containing all...

Question 11

The debt ratio is used:

Accepted Answer

A)  To measure the ratio of equity to expenses. 
B)  To assess the risk associated with a company's use of liabilities. 
C)  Only by banks when a business applies for a loan. 
D)  To determine how much debt a firm should pay off. 
E)  To determine how much debt a company should borrow. 
A)  To measure the ratio of equity to expenses. 
B)  To assess the risk associated with a company's use of liabilities. 
C)  Only by banks when a business applies for a loan. 
D)  To determine how much debt a firm should pay off. 
E)  To determine how much debt a company should borrow.

Question 12

Explain how accounts are used in recording information about transactions.

Accepted Answer

Accounts are classified into three gener

Question 13

The _______________________ is a record containing all accounts used by a company.

Accepted Answer

General le

Question 14

Dolly Barton began Barton Office Services in October and during that month completed these transactions:
a. Invested $10,000 cash, and $15,000 of computer equipment.
b. Paid $500 cash for an insurance premium covering the next 12 months.
c. Completed a word processing assignment for a customer and collected $1,000 cash.
d. Paid $200 cash for office supplies.
e. Paid $2,000 for October's rent.
Prepare journal entries to record the above transactions. Explanations are unnecessary.

Accepted Answer

The answer of Dolly Barton began Barton Office Services in...

Question 15

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 and withdrew $5,000 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 16

Inge Industries received $3,000 from a customer for services rendered and not previously recorded. Inge's general journal entry to record this transaction will be:

Accepted Answer

A)  Debit Services Revenue, credit Accounts Receivable. 
B)  Debit Cash, credit Accounts Payable. 
C)  Debit Cash, credit Accounts Receivable. 
D)  Debit Cash, credit Services Revenue. 
E)  Debit Accounts Payable, credit Services Revenue. 
A)  Debit Services Revenue, credit Accounts Receivable. 
B)  Debit Cash, credit Accounts Payable. 
C)  Debit Cash, credit Accounts Receivable. 
D)  Debit Cash, credit Services Revenue. 
E)  Debit Accounts Payable, credit Services Revenue.

Question 17

The following trial balance is prepared from the general ledger of Hal's Auto Repair.
Because the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made:
1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable.
2. An investment of $500 cash by the owner was debited to Hal Frederick, Capital and credited to Cash.
3. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted from the computation.
4. One debit of $300 to the Hal Frederick, Withdrawals account was posted as a credit.
5. Office equipment purchased for $800 was posted to the Repair Equipment account.
6. One entire entry was not posted to the general ledger. The transaction involved the receipt of $125 cash for repair services performed for cash.
Prepare a corrected trial balance for the Hal's Auto Repair as of October 31.

Accepted Answer

^aCash: Balance $975 + $1,000 (2) + 125 (6

Question 18

An account balance is:

Accepted Answer

A)  The total of the credit side of the account. 
B)  The total of the debit side of the account. 
C)  The difference between the total debits and total credits for an account including the beginning balance. 
D)  Assets = liabilities + equity. 
E)  Always a credit. 
A)  The total of the credit side of the account. 
B)  The total of the debit side of the account. 
C)  The difference between the total debits and total credits for an account including the beginning balance. 
D)  Assets = liabilities + equity. 
E)  Always a credit.

Question 19

A column in journals and ledger accounts used to cross reference journal and ledger entries is the:

Accepted Answer

A)  Account balance column. 
B)  Debit column. 
C)  Posting reference column. 
D)  Credit column. 
E)  Description column. 
A)  Account balance column. 
B)  Debit column. 
C)  Posting reference column. 
D)  Credit column. 
E)  Description column.

Question 20

Of the following accounts, the one that normally has a credit balance is:

Accepted Answer

A)  Cash. 
B)  Office Equipment. 
C)  Wages Payable. 
D)  Owner, Withdrawals. 
E)  Sales Salaries Expense. 
A)  Cash. 
B)  Office Equipment. 
C)  Wages Payable. 
D)  Owner, Withdrawals. 
E)  Sales Salaries Expense.

Exam 2: Analyzing and Recording Transactions

Posting is the transfer of journal entry information to the ledger.

An income statement reports the revenues earned less expenses incurred by a business over a period of time.

During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance?

____________________________ and _____________________ are the starting points for the analyzing and recording process.

The third step in the analyzing and recording process is to post the information to ________________________.

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):

Items such as sales tickets, bank statements, checks, and purchase orders are source documents.

Which of the following statements is incorrect?

A company sends a $1,500 bill to a customer for delivery services rendered. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

A ___________________ is a record containing all accounts for a company along with their balances.

The debt ratio is used:

Explain how accounts are used in recording information about transactions.

The _______________________ is a record containing all accounts used by a company.

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 and withdrew $5,000 during the year, what was the amount of net income earned by Josephine's Bakery?

Inge Industries received $3,000 from a customer for services rendered and not previously recorded. Inge's general journal entry to record this transaction will be:

An account balance is:

A column in journals and ledger accounts used to cross reference journal and ledger entries is the:

Of the following accounts, the one that normally has a credit balance is:

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

Filters

________ and _ are the starting points for the analyzing and recording process.