Exam 2: Analyzing and Recording Business Transactions

The controller for Tires and More,Inc.has recorded the following transactions during the month: the owner established the business with a $20,000 investment on the 1st of the month; the company recorded $36,000 of revenue for tires and services provided during the month; and expenses of $22,000 were recorded for the month.Additionally,on the last day of the month the owner withdrew $2,000 for personal expenses.What is the balance of Owner's Equity at the end of the month,and is the balance a debit or a credit?

When a business hires a new employee,a recordable transaction has occurred.

In a journal entry,debits are always recorded before credits.

The process of transferring journal entry information from the journal to the ledger is called

Copper Company engaged in the following transactions during April What is the amount of cash still to be collected?

All sales transactions generate immediate cash.

Copper Company began operations in April and then engaged in the following transactions during April If the balance in cash after these transactions is $165,000,how much cash was paid on account?

The first step in the accounting cycle is to post the journal entries to the ledger and prepare a trial balance.

Slim Co.is ordering a new computer for its corporate office.Which of the following events would trigger the recognition of the computer and related liability on Slim's books?

Ironwood Company has just started operations.The owner,Robert Ironwood,invested $10,000 to get the business started.The company has made several sales on account,but has not yet collected any cash from these sales.At this point,Ironwood's cash flows for expenses are exceeding its cash flows from revenues.How might Ironwood make up the difference so it can maintain its liquidity?

Which of the following events does not require a journal entry?

When a withdrawal is made,the Cash account is debited and the Withdrawals account is credited.

In the general journal,the year appears on the first line of the first column,the month on the next line of the first column,and the day in the second column opposite the month.

All expenses incurred by a business are paid immediately in cash.

What type of information does the general journal include for each transaction?

Which of the following is the first step in the accounting cycle?

The cost principle relates most closely to the

From the following alphabetical list of account balances,all of which are normal,for Ivy Maxx Company on July 31,2014,prepare a trial balance in proper form (the amount of Ivy Maxx,Withdrawals must be computed).

The general ledger is used to record the details of each transaction.The general journal is used to update each account.

Which of the following is not a measurement issue in accounting?