Question 1

Which of the following has no effect on stockholders' equity?

Accepted Answer

A)   Issuing shares of stock
B)   Expenses
C)   Paying dividends
D)   Revenues
E)   None of the above E

Question 2

The analysis of each transaction must result in the accounting equation remaining in balance.

Accepted Answer

A) True 
 B)False  True

Question 3

St. Clair Motor Supplies had the following transactions during December:
$\bullet$Paid a note of $17,000 owed since March plus $425 for interest.
$\bullet$Sold $36,525 of merchandise to customers on account. Cost of goods sold was $21,250.
$\bullet$Paid accounts payable of $2,050.
As a result of these transactions, at year-end, liabilities and stockholders' equity would show a total:

Accepted Answer

A)   Decrease by $4,575
B)   Decrease by $4,200
C)   Decrease by $4,800
D)   Increase by $13,425  B

Question 4

The following balance sheet information is given for Solar, Inc., at June 30, 2019: 
  
Assume that, during the next three days, the following transactions occurred:
July 1 Paid $5,000 on accounts payable.
2 Purchased equipment for $25,000 and gave a note payable for the amount due.
3 Declared and paid a cash dividend, $4,000.
a. What was the amount of retained earnings on June 30, 2019?
b. Assume a balance sheet is prepared on July 3, 2019, after the three transactions have occurred:
(1) What amount of total assets would appear?
(2) What amount of total liabilities would appear?
(3) What amount of stockholders' equity would appear?

Accepted Answer

The answer of The following balance sheet information is given...

Question 5

An individual record of increases and decreases in specific assets, liabilities, and stockholders' equity is called:

Accepted Answer

A)   An account
B)   A normal balance
C)   A general ledger
D)   A trial balance
E)   None of the above

Question 6

On December 31, 2018, the balance sheet of Roberts Realty reported total assets of $200,000. The following transactions occurred during the month of January 2019:
(1) The business purchased land for $250,000, paying $100,000 cash and issuing a note payable for the balance.
(2) The business collected accounts receivable totaling $45,000.
(3) The business sold land (which had cost $50,000) for $60,000 cash.
(4) The business paid off $50,000 of Notes Payable.
What is the amount of the company's total assets on January 31, 2019?

Accepted Answer

A)   $455,000
B)   $365,000
C)   $460,000
D)   $310,000

Question 7

If the beginning Cash account balance was $10,000, the ending balance was $16,800, and the total cash paid out during the period was $32,000, what amount of cash was received during the period?

Accepted Answer

A)   $ 4,800
B)   $46,800
C)   $37,200
D)   $38,800
E)   None of the above

Question 8

When invoices are sent to customers billing them for services that have been performed, the correct transaction analysis is:

Accepted Answer

A)   Increase Accounts Receivable and increase Service Fees Earned
B)   Decrease Accounts Payable and increase Service Fees Earned
C)   Decrease Service Fees Earned and decrease Accounts Receivable
D)   Increase Cash and increase Service Fees Earned
E)   Increase Accounts Receivable and increase Accounts Payable

Question 9

The chart of accounts is a tabular record in which business activities are analyzed in terms of debits and credits and recorded in chronological order.

Accepted Answer

A) True 
 B)False

Question 10

The double-entry system of accounting means that:

Accepted Answer

A)   Two pieces of information must be recorded for each transaction--the date and the dollar amount.
B)   Assets will be increased twice as often as liabilities.
C)   At least two elements of the accounting equation must be affected for each transaction.
D)   Each transaction will be recorded two times, once in the general ledger and once in the balance sheet.
E)   None of the above

Question 11

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases
-Paid cash dividends.

Accepted Answer

A)   Increase an asset
B)   Decrease an asset
C)   Decrease a liability
D)   Increase a liability
E)   Decrease common stockF)  Increase common stockG)  Increase dividendsH)  Decease dividendsI)  Decrease revenueJ)  Increase revenueK)  Increase expenseL)  Decrease expense

Question 12

Horizon Company, an internet service provider, has 1,000,000 customers. The customers make electronic payments of $70 each for that month's service on the last day of each month. Horizon Company does not send any bills to their customers.
The company's transaction on the day they receive the payment will include:

Accepted Answer

A)   An increase to Internet Service Revenue for $70,000,000
B)   An increase to Accounts Receivable for $70,000,000
C)   A decrease to Accounts Receivable for $70,000,000
D)   A decrease to Internet Service Expense for $70,000,000

Question 13

The accountant at Error Prone Company recorded the purchase of $300 of supplies for cash as an increase to Supplies for $300 and an increase to Accounts Payable for $300.
Determine the effect of this error on the accounting equation of Error Prone Company.

Accepted Answer

A)   Total Equity would be overstated by $300
B)   Total Liabilities will be understated by $300
C)   Total Assets would be overstated by $300
D)   Total Equity would be understated by $300

Question 14

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases
-Billed customers for services rendered.

Accepted Answer

A)   Increase an asset
B)   Decrease an asset
C)   Decrease a liability
D)   Increase a liability
E)   Decrease common stockF)  Increase common stockG)  Increase dividendsH)  Decease dividendsI)  Decrease revenueJ)  Increase revenueK)  Increase expenseL)  Decrease expense

Question 15

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases
-Paid employees' salaries.

Accepted Answer

A)   Increase an asset
B)   Decrease an asset
C)   Decrease a liability
D)   Increase a liability
E)   Decrease common stockF)  Increase common stockG)  Increase dividendsH)  Decease dividendsI)  Decrease revenueJ)  Increase revenueK)  Increase expenseL)  Decrease expense

Question 16

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases
-Collected amounts due from customers billed in transaction 5

Accepted Answer

A)   Increase an asset
B)   Decrease an asset
C)   Decrease a liability
D)   Increase a liability
E)   Decrease common stockF)  Increase common stockG)  Increase dividendsH)  Decease dividendsI)  Decrease revenueJ)  Increase revenueK)  Increase expenseL)  Decrease expense

Question 17

Prepare a horizontal worksheet with the following column headings for Mast Printers, Inc., which began business on January 1: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Notes Payable; Common Stock; Dividends; Printing Fees Earned; Salaries Expense; Rent Expense; and Utilities Expense. Record the following January transactions. Total all columns to show that assets equal liabilities plus stockholders' equity as of January 31.
(1) Shareholders purchased $90,000 in stock.
(2) Paid rent for the month, $1,100.
(3) Purchased equipment for $30,000, giving a note payable for $30,000.
(4) Purchased supplies on account, $5,000.
(5) Billed clients for services rendered, $19,000.
(6) Paid salaries for the month, $7,800.
(7) Paid $4,000 on account for supplies purchased in transaction (4).
(8) Collected $8,700 from clients previously billed.
(9) Paid utilities for the month, $490.
(10) Paid $5,800 cash dividends.

Accepted Answer

The answer of Prepare a horizontal worksheet with the following...

Question 18

On December 31, 2018, Frazier Company had a $61,275 balance in Accounts Receivable. During the year 2019, the company collected $100,000 from its credit customers. The December 31, 2019 balance of the Accounts Receivable was $85,325.
Determine the amount of sales on accounts for 2019.

Accepted Answer

A)   $126,550
B)   $ 78,000
C)   $124,050
D)   $ 78,450

Question 19

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases
-Made partial payment for equipment purchased in transaction 4

Accepted Answer

A)   Increase an asset
B)   Decrease an asset
C)   Decrease a liability
D)   Increase a liability
E)   Decrease common stockF)  Increase common stockG)  Increase dividendsH)  Decease dividendsI)  Decrease revenueJ)  Increase revenueK)  Increase expenseL)  Decrease expense

Question 20

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases
-A shareholder purchased stock.

Accepted Answer

A)   Increase an asset
B)   Decrease an asset
C)   Decrease a liability
D)   Increase a liability
E)   Decrease common stockF)  Increase common stockG)  Increase dividendsH)  Decease dividendsI)  Decrease revenueJ)  Increase revenueK)  Increase expenseL)  Decrease expense

Exam 2: Processing Accounting Information

Which of the following has no effect on stockholders' equity?

The analysis of each transaction must result in the accounting equation remaining in balance.

An individual record of increases and decreases in specific assets, liabilities, and stockholders' equity is called:

If the beginning Cash account balance was $10,000, the ending balance was $16,800, and the total cash paid out during the period was $32,000, what amount of cash was received during the period?

When invoices are sent to customers billing them for services that have been performed, the correct transaction analysis is:

The chart of accounts is a tabular record in which business activities are analyzed in terms of debits and credits and recorded in chronological order.

The double-entry system of accounting means that:

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -Paid cash dividends.

The accountant at Error Prone Company recorded the purchase of $300 of supplies for cash as an increase to Supplies for $300 and an increase to Accounts Payable for $300. Determine the effect of this error on the accounting equation of Error Prone Company.

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -Billed customers for services rendered.

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -Paid employees' salaries.

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -Collected amounts due from customers billed in transaction 5

On December 31, 2018, Frazier Company had a $61,275 balance in Accounts Receivable. During the year 2019, the company collected $100,000 from its credit customers. The December 31, 2019 balance of the Accounts Receivable was $85,325. Determine the amount of sales on accounts for 2019.

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -Made partial payment for equipment purchased in transaction 4

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -A shareholder purchased stock.