Question 1

The normal balance of an account is the side (debit or credit)used to decrease the account.

Accepted Answer

A) True 
 B)False

Question 2

Another name for the ledger is the book of original entry.

Accepted Answer

A) True 
 B)False

Question 3

During the most recent month,Campbell Company began operations with a cash balance of $0 and made made cash sales of $162,000.During this same time period,the company paid $64,000 in cash expenses.Additionally,the company purchased supplies on account,$68,000,made sales on account,$180,000,and paid cash on account $12,000.
a.If cash at the end of the month totals $148,000,how much cash was received on account?
b.What is the total amount still to be paid?
c.What is the total amount still to be received?

Accepted Answer

a. @#IMG-DLM& b.$68,000 - 12,0

Question 4

Once in a while,a transaction leaves an account with a balance that isn't "normal." When this occurs,the "abnormal" balance should be corrected to the "normal" balance before copying the balance into the trial balance.

Accepted Answer

A) True 
 B)False

Question 5

The Owner's Withdrawals account has a normal debit balance.

Accepted Answer

A) True 
 B)False

Question 6

Mesquite,Inc.engaged in the following transactions during October:   What is the amount of cash still to be paid?

Accepted Answer

A) $2,300 
B) $2,100 
C) $1,300 
D) $400 
A) $2,300 
B) $2,100 
C) $1,300 
D) $400

Question 7

After initially recording an asset at cost,fair value is

Accepted Answer

A) the price at which an asset could be sold in a current transaction between independent parties. 
B) the actual,or historical,price at which the asset was acquired. 
C) the easiest value used to measure and record assets. 
D) verifiable at all future dates by referring to the invoice price paid for the asset. 
A) the price at which an asset could be sold in a current transaction between independent parties. 
B) the actual,or historical,price at which the asset was acquired. 
C) the easiest value used to measure and record assets. 
D) verifiable at all future dates by referring to the invoice price paid for the asset.

Question 8

Which pair of accounts follows the rules of debit and credit in the same manner?

Accepted Answer

A) Service Revenue and Equipment 
B) Land and Withdrawals 
C) Notes Payable and Buildings 
D) Wages Expense and Service Revenue 
A) Service Revenue and Equipment 
B) Land and Withdrawals 
C) Notes Payable and Buildings 
D) Wages Expense and Service Revenue

Question 9

A credit to an asset account means that asset account has been increased.

Accepted Answer

A) True 
 B)False

Question 10

In a trial balance,all debits are listed before all credits.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following errors will cause the trial balance to be out of balance?

Accepted Answer

A) Posting a debit to Land as a debit to Machinery. 
B) Placing a debit balance amount into the credit balance column of the ledger. 
C) Omitting an entire transaction. 
D) Incorrectly recording the purchase of land for cash as a debit to Cash and a credit to Land. 
A) Posting a debit to Land as a debit to Machinery. 
B) Placing a debit balance amount into the credit balance column of the ledger. 
C) Omitting an entire transaction. 
D) Incorrectly recording the purchase of land for cash as a debit to Cash and a credit to Land.

Question 12

Posting is performed by transferring information from the

Accepted Answer

A) source documents to the journal. 
B) source documents to the ledger. 
C) journal to the ledger. 
D) ledger to the journal. 
A) source documents to the journal. 
B) source documents to the ledger. 
C) journal to the ledger. 
D) ledger to the journal.

Question 13

Mesquite,Inc.is ordering a new machine to be used in its manufacturing facility.Which of the following events would trigger the recognition of the machine and related liability on Mesquite's books?

Accepted Answer

A) The company generates a purchase order. 
B) A technician installs the machine on the floor of the manufacturing facility. 
C) The company receives the machine. 
D) The company pays the bill from the supplier. 
A) The company generates a purchase order. 
B) A technician installs the machine on the floor of the manufacturing facility. 
C) The company receives the machine. 
D) The company pays the bill from the supplier.

Question 14

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

Accepted Answer

A) $18,000 
B) $47,000 
C) $94,000 
D) $52,000 
A) $18,000 
B) $47,000 
C) $94,000 
D) $52,000

Question 15

Purchase requests and purchase orders are economic events,and as such they affect a company's financial position,and are recognized in the accounting records.

Accepted Answer

A) True 
 B)False

Question 16

Purchasing office supplies on account is an example of one way a company can take advantage of deferring a cash payment.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an example of egregious financial reporting fraud as discussed in the text?

Accepted Answer

A) Closing the books at the end of the reporting period. 
B) Transferring assets to an affiliate at more than their actual value. 
C) Recording as expenses expenditures that should have been classfied as expenses. 
D) Recording a liability when title to merchandise passes to the purchaser. 
A) Closing the books at the end of the reporting period. 
B) Transferring assets to an affiliate at more than their actual value. 
C) Recording as expenses expenditures that should have been classfied as expenses. 
D) Recording a liability when title to merchandise passes to the purchaser.

Question 18

An $800 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

Accepted Answer

A) $0 
B) $400 
C) $800 
D) $1,600 
A) $0 
B) $400 
C) $800 
D) $1,600

Question 19

In a journal entry,debits are always indented.

Accepted Answer

A) True 
 B)False

Question 20

When a business erroneously records expenses as assets,it has violated the measurement issue of

Accepted Answer

A) communication. 
B) classification. 
C) valuation. 
D) realization. 
A) communication. 
B) classification. 
C) valuation. 
D) realization.

The normal balance of an account is the side (debit or credit)used to decrease the account.

Another name for the ledger is the book of original entry.

Once in a while,a transaction leaves an account with a balance that isn't "normal." When this occurs,the "abnormal" balance should be corrected to the "normal" balance before copying the balance into the trial balance.

The Owner's Withdrawals account has a normal debit balance.

Mesquite,Inc.engaged in the following transactions during October: What is the amount of cash still to be paid?

After initially recording an asset at cost,fair value is

Which pair of accounts follows the rules of debit and credit in the same manner?

A credit to an asset account means that asset account has been increased.

In a trial balance,all debits are listed before all credits.

Which of the following errors will cause the trial balance to be out of balance?

Posting is performed by transferring information from the

Mesquite,Inc.is ordering a new machine to be used in its manufacturing facility.Which of the following events would trigger the recognition of the machine and related liability on Mesquite's books?

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

Purchase requests and purchase orders are economic events,and as such they affect a company's financial position,and are recognized in the accounting records.

Purchasing office supplies on account is an example of one way a company can take advantage of deferring a cash payment.

Which of the following is an example of egregious financial reporting fraud as discussed in the text?

An $800 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

In a journal entry,debits are always indented.

When a business erroneously records expenses as assets,it has violated the measurement issue of

Accounting Principles and the Financial Statements

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 2: Analyzing and Recording Business Transactions

The normal balance of an account is the side (debit or credit)used to decrease the account.

Another name for the ledger is the book of original entry.

Once in a while,a transaction leaves an account with a balance that isn't "normal." When this occurs,the "abnormal" balance should be corrected to the "normal" balance before copying the balance into the trial balance.

The Owner's Withdrawals account has a normal debit balance.

Mesquite,Inc.engaged in the following transactions during October: What is the amount of cash still to be paid?

After initially recording an asset at cost,fair value is

Which pair of accounts follows the rules of debit and credit in the same manner?

A credit to an asset account means that asset account has been increased.

In a trial balance,all debits are listed before all credits.

Which of the following errors will cause the trial balance to be out of balance?

Posting is performed by transferring information from the

Mesquite,Inc.is ordering a new machine to be used in its manufacturing facility.Which of the following events would trigger the recognition of the machine and related liability on Mesquite's books?

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

Purchase requests and purchase orders are economic events,and as such they affect a company's financial position,and are recognized in the accounting records.

Purchasing office supplies on account is an example of one way a company can take advantage of deferring a cash payment.

Which of the following is an example of egregious financial reporting fraud as discussed in the text?

An $800 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

In a journal entry,debits are always indented.

When a business erroneously records expenses as assets,it has violated the measurement issue of

Accounting Principles and the Financial Statements

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters