Question 1

Which of the following is a business event that is not considered a recordable transaction?

Accepted Answer

A) A company receives a product previously ordered. 
B) A company pays an employee for work performed. 
C) A customer inquires about the availability of a service. 
D) A customer purchases a service. 
A) A company receives a product previously ordered. 
B) A company pays an employee for work performed. 
C) A customer inquires about the availability of a service. 
D) A customer purchases a service.

Question 2

The account most recently posted is determined most efficiently by referring to the

Accepted Answer

A) Post.Ref.column of the ledger. 
B) balance column of the ledger. 
C) date column of the general journal. 
D) Post.Ref.column of the general journal. 
A) Post.Ref.column of the ledger. 
B) balance column of the ledger. 
C) date column of the general journal. 
D) Post.Ref.column of the general journal.

Question 3

If a debit to Supplies were posted as a credit,and a credit of the same amount to Cash were posted as a debit,what would be the effect,if any,on the two accounts and on the trial balance column totals?

Accepted Answer

The Cash account would be over

Question 4

What are the steps in the posting process for the debit side of an entry?

Accepted Answer

The steps in the posting process for the

Question 5

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

Accepted Answer

Business events become transactions and

Question 6

Which of the following is not an example of egregious financial reporting frauds as discussed in the text?

Accepted Answer

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

Question 7

Copper Company began operations in April and then engaged in the following transactions during April   What is the balance in cash after these transactions?

Accepted Answer

A) $302,000 
B) $190,000 
C) $144,000 
D) $87,000 
A) $302,000 
B) $190,000 
C) $144,000 
D) $87,000

Question 8

Which of the following is a business event that is considered a recordable transaction?

Accepted Answer

A) A company hires a new employee. 
B) A customer purchases merchandise. 
C) A company orders a product from a supplier. 
D) An employee sends a purchase requisition to the purchasing department. 
A) A company hires a new employee. 
B) A customer purchases merchandise. 
C) A company orders a product from a supplier. 
D) An employee sends a purchase requisition to the purchasing department.

Question 9

Journal entries are typically posted to the ledger only at the end of the year.

Accepted Answer

A) True 
 B)False

Question 10

To find a description of a transaction,one should look at the

Accepted Answer

A) ledger. 
B) trial balance. 
C) journal. 
D) chart of accounts. 
A) ledger. 
B) trial balance. 
C) journal. 
D) chart of accounts.

Question 11

Recording an account with a debit balance as a credit,or vice versa,will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

Accepted Answer

A) True 
 B)False

Question 12

One of the general rules of the double-entry system is that total debits must always be equal to total credits.

Accepted Answer

A) True 
 B)False

Question 13

Normally,the value of an asset remains at its initial fair value or cost until the asset is sold,expires,or is consumed.

Accepted Answer

A) True 
 B)False

Question 14

From the following alphabetical list of account balances,all of which are normal,for Cannon Company on September 30,2014,prepare a trial balance in proper form (the amount of Tina Cannon,Withdrawals must be computed).

Accepted Answer

The answer of From the following alphabetical list of account...

Question 15

The valuation issue deals with how the components of a transaction should be categorized.

Accepted Answer

A) True 
 B)False

Question 16

The controller for Tires and More,Inc.has recorded the following transactions during the month: the purchase of equipment for $8,500 cash; payment of $6,300 for 3 months rent; and,collection of $2,400 from a customer for services performed.At the beginning of the month the owner established the business by making an investment of $15,000 cash.What is the balance in the Cash account at the end of the month,and is the balance a debit or a credit?

Accepted Answer

A) $2,600 debit. 
B) $2,600 credit. 
C) $6,800 debit. 
D) $15,200 debit. 
A) $2,600 debit. 
B) $2,600 credit. 
C) $6,800 debit. 
D) $15,200 debit.

Question 17

A company records a transaction in which six months' rent is paid in advance.Which of the following journal entries records the transaction?

Accepted Answer

A) Prepaid Rent - Debit; Cash - Credit 
B) Rent Receivable - Debit; Cash - Credit 
C) Rent Revenue - Debit; Cash - Credit 
D) Rent Expense- Debit; Cash - Credit. 
A) Prepaid Rent - Debit; Cash - Credit 
B) Rent Receivable - Debit; Cash - Credit 
C) Rent Revenue - Debit; Cash - Credit 
D) Rent Expense- Debit; Cash - Credit.

Question 18

Entering transactions into the journal is called posting.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an illustration of the classification issue?

Accepted Answer

A) At what amount should land be shown on the balance sheet? 
B) At what point should the payment of salaries to employees be recorded? 
C) Should supplies be recorded as an asset or as an expense? 
D) At what point should a bill be paid for the purchase of an item? 
A) At what amount should land be shown on the balance sheet? 
B) At what point should the payment of salaries to employees be recorded? 
C) Should supplies be recorded as an asset or as an expense? 
D) At what point should a bill be paid for the purchase of an item?

Question 20

Use this journal entry to answer the following question.

Accepted Answer

a.The transaction occurred and was recog

Which of the following is a business event that is not considered a recordable transaction?

The account most recently posted is determined most efficiently by referring to the

If a debit to Supplies were posted as a credit,and a credit of the same amount to Cash were posted as a debit,what would be the effect,if any,on the two accounts and on the trial balance column totals?

What are the steps in the posting process for the debit side of an entry?

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

Which of the following is not an example of egregious financial reporting frauds as discussed in the text?

Copper Company began operations in April and then engaged in the following transactions during April What is the balance in cash after these transactions?

Which of the following is a business event that is considered a recordable transaction?

Journal entries are typically posted to the ledger only at the end of the year.

To find a description of a transaction,one should look at the

Recording an account with a debit balance as a credit,or vice versa,will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

One of the general rules of the double-entry system is that total debits must always be equal to total credits.

Normally,the value of an asset remains at its initial fair value or cost until the asset is sold,expires,or is consumed.

From the following alphabetical list of account balances,all of which are normal,for Cannon Company on September 30,2014,prepare a trial balance in proper form (the amount of Tina Cannon,Withdrawals must be computed).

The valuation issue deals with how the components of a transaction should be categorized.

A company records a transaction in which six months' rent is paid in advance.Which of the following journal entries records the transaction?

Entering transactions into the journal is called posting.

Which of the following is an illustration of the classification issue?

Use this journal entry to answer the following question.

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

Which of the following is a business event that is not considered a recordable transaction?

The account most recently posted is determined most efficiently by referring to the

If a debit to Supplies were posted as a credit,and a credit of the same amount to Cash were posted as a debit,what would be the effect,if any,on the two accounts and on the trial balance column totals?

What are the steps in the posting process for the debit side of an entry?

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

Which of the following is not an example of egregious financial reporting frauds as discussed in the text?

Copper Company began operations in April and then engaged in the following transactions during April What is the balance in cash after these transactions?

Which of the following is a business event that is considered a recordable transaction?

Journal entries are typically posted to the ledger only at the end of the year.

To find a description of a transaction,one should look at the

Recording an account with a debit balance as a credit,or vice versa,will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

One of the general rules of the double-entry system is that total debits must always be equal to total credits.

Normally,the value of an asset remains at its initial fair value or cost until the asset is sold,expires,or is consumed.

From the following alphabetical list of account balances,all of which are normal,for Cannon Company on September 30,2014,prepare a trial balance in proper form (the amount of Tina Cannon,Withdrawals must be computed).

The valuation issue deals with how the components of a transaction should be categorized.

A company records a transaction in which six months' rent is paid in advance.Which of the following journal entries records the transaction?

Entering transactions into the journal is called posting.

Which of the following is an illustration of the classification issue?

Use this journal entry to answer the following question.

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