Question 1

Larry Matt completed these transactions during December of the current year:
   Prepare general journal entries to record these transactions.

Accepted Answer

The answer of Larry Matt completed these transactions during December...

Question 2

Identify the account used by businesses to record the transfer of assets from a business to its stockholders:

Accepted Answer

A) A revenue account. 
B) The dividends account. 
C) The common stock account. 
D) An expense account. 
E) A liability account. 
A) A revenue account. 
B) The dividends account. 
C) The common stock account. 
D) An expense account. 
E) A liability account.

Question 3

Benjamin Stone opened Stone's Repairs on March 1 of the current year.During March,the following transactions occurred and were recorded in the company's books: 1.Benjamin,the sole stockholder,invested $25,000 cash in the business in exchange for common stock.
2.Benjamin contributed $100,000 of equipment to the business in exchange for common stock.
3.The company paid $2,000 cash to rent office space for the month of March.
4.The company received $16,000 cash for repair services provided during March.
5.The company paid $6,200 for salaries for the month of March.
6.The company provided $3,000 of services to customers on account.
7.The company paid cash of $500 for utilities for the month of March.
8.The company received $3,100 cash in advance from a customer for repair services to be provided in April.
9.The company paid Benjamin $5,000 cash as a dividend.
Based on this information,total stockholder's equity reported on the balance sheet at the end of March would be:

Accepted Answer

A) $133,400. 
B) $130,300. 
C) $125,300. 
D) $8,400. 
E) $13,500. 
A) $133,400. 
B) $130,300. 
C) $125,300. 
D) $8,400. 
E) $13,500.

Question 4

Larry Bar opened a frame shop and completed these transactions: 1.Larry started the shop by investing $40,000 cash and equipment valued at $18,000 in exchange for common stock.
2.Purchased $70 of office supplies on credit.
3.Paid $1,200 cash for the receptionist's salary.
4.Sold a custom frame service and collected $1,500 cash on the sale.
5.Completed framing services and billed the client $200.
What was the balance of the cash account after these transactions were posted?

Accepted Answer

A) $300. 
B) $41,500. 
C) $40,300. 
D) $38,500. 
E) $38,700. 
A) $300. 
B) $41,500. 
C) $40,300. 
D) $38,500. 
E) $38,700.

Question 5

Revenues and expenses are two categories of ________ accounts.

Accepted Answer

The answer of Revenues and expenses are two categories of...

Question 6

J.Smith,the sole stockholder,received a $100 dividend from Jay's Limo Services.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Accepted Answer

A)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 100 & \
\hline \text { Cash } & & 100 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 100 & \
\hline \text { Dividends } & & 100 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Common Stock } & 100 & \
\hline \text { Dividends } & & 100 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 100 & \
\hline \text { Common Stock } & & 100 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 100 & \
\hline \text { Common Stock } & & 100 \
\hline
\end{array}$ 
A)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 100 & \
\hline \text { Cash } & & 100 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 100 & \
\hline \text { Dividends } & & 100 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Common Stock } & 100 & \
\hline \text { Dividends } & & 100 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 100 & \
\hline \text { Common Stock } & & 100 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 100 & \
\hline \text { Common Stock } & & 100 \
\hline
\end{array}$

Question 7

Identify the account below that is classified as a liability account:

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Salaries Expense 
D) Common Stock 
E) Equipment 
A) Cash 
B) Accounts Payable 
C) Salaries Expense 
D) Common Stock 
E) Equipment

Question 8

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

Accepted Answer

A) A debit to an unearned revenue account and a credit to cash. 
B) A debit to a prepaid expense account and a credit to cash. 
C) A debit to cash and a credit to an unearned revenue account. 
D) A debit to cash and a credit to a prepaid expense account. 
E) No entry is required at the time of collection. 
A) A debit to an unearned revenue account and a credit to cash. 
B) A debit to a prepaid expense account and a credit to cash. 
C) A debit to cash and a credit to an unearned revenue account. 
D) A debit to cash and a credit to a prepaid expense account. 
E) No entry is required at the time of collection.

Question 9

The ________ is a record containing all accounts used by a company as well as the transactions and ending balances of each of the accounts.

Accepted Answer

general le

Question 10

The financial statement that summarizes the changes in the retained earnings account is called the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Identify the account below that impacts the Equity of a business:

Accepted Answer

A) Utilities Expense 
B) Accounts Payable 
C) Accounts Receivable 
D) Cash 
E) Unearned Revenue 
A) Utilities Expense 
B) Accounts Payable 
C) Accounts Receivable 
D) Cash 
E) Unearned Revenue

Question 12

During the month of March,Harley's Computer Services made purchases on account totaling $43,500.Also during the month of March,Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance.If the balance in the accounts payable account at the beginning of March was $77,300,what is the balance in accounts payable at the end of March?

Accepted Answer

A) $83,900. 
B) $91,900. 
C) $6,600. 
D) $75,900. 
E) $4,900. 
A) $83,900. 
B) $91,900. 
C) $6,600. 
D) $75,900. 
E) $4,900.

Question 13

Jason Hope decided to open a hotel in his hometown.Prepare journal entries to record the following transactions.Hope uses the accounts Room Rental Revenue and Event Revenue.All expenses for special events are recorded as Event Expense.(Omit explanations.)

Accepted Answer

The answer of Jason Hope decided to open a hotel...

Question 14

Which of the following is not a step in the accounting process?

Accepted Answer

A) Record relevant transactions and events in a journal. 
B) Post journal information to the ledger accounts. 
C) Prepare and analyze the trial balance. 
D) Analyze each transaction. 
E) Verify that revenues and expenses are equal. 
A) Record relevant transactions and events in a journal. 
B) Post journal information to the ledger accounts. 
C) Prepare and analyze the trial balance. 
D) Analyze each transaction. 
E) Verify that revenues and expenses are equal.

Question 15

The second step in the analyzing and recording process is to record the transactions and events in the book of original entry,called the ________.

Accepted Answer

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

Question 16

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

Accepted Answer

Business t

Question 17

Identify the statement below that is correct.

Accepted Answer

A) The left side of a T-account is the credit side. 
B) Debits decrease asset and expense accounts,and increase liability,equity,and revenue accounts. 
C) The left side of a T-account is the debit side. 
D) Credits increase asset and expense accounts,and decrease liability,equity,and revenue accounts. 
E) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction. 
A) The left side of a T-account is the credit side. 
B) Debits decrease asset and expense accounts,and increase liability,equity,and revenue accounts. 
C) The left side of a T-account is the debit side. 
D) Credits increase asset and expense accounts,and decrease liability,equity,and revenue accounts. 
E) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Based on the following trial balance for Sally's Salon,prepare an income statement,statement of retained earnings,and a balance sheet.Sally Crawford,the sole stockholder,made no additional investments in the company during the year.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& Sally's

Question 20

The higher a company's debt ratio,the lower the risk of a company not being able to meet its obligations.

Accepted Answer

A) True 
 B)False

Larry Matt completed these transactions during December of the current year: Prepare general journal entries to record these transactions.

Identify the account used by businesses to record the transfer of assets from a business to its stockholders:

Revenues and expenses are two categories of ________ accounts.

J.Smith,the sole stockholder,received a $100 dividend from Jay's Limo Services.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Identify the account below that is classified as a liability account:

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

The ________ is a record containing all accounts used by a company as well as the transactions and ending balances of each of the accounts.

The financial statement that summarizes the changes in the retained earnings account is called the balance sheet.

Identify the account below that impacts the Equity of a business:

Jason Hope decided to open a hotel in his hometown.Prepare journal entries to record the following transactions.Hope uses the accounts Room Rental Revenue and Event Revenue.All expenses for special events are recorded as Event Expense.(Omit explanations.)

Which of the following is not a step in the accounting process?

The second step in the analyzing and recording process is to record the transactions and events in the book of original entry,called the ________.

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

Identify the statement below that is correct.

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

Based on the following trial balance for Sally's Salon,prepare an income statement,statement of retained earnings,and a balance sheet.Sally Crawford,the sole stockholder,made no additional investments in the company during the year.

The higher a company's debt ratio,the lower the risk of a company not being able to meet its obligations.

Introducing Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 2: Financial Statements and the Accounting System

Larry Matt completed these transactions during December of the current year: Prepare general journal entries to record these transactions.

Identify the account used by businesses to record the transfer of assets from a business to its stockholders:

Revenues and expenses are two categories of ________ accounts.

J.Smith,the sole stockholder,received a $100 dividend from Jay's Limo Services.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Identify the account below that is classified as a liability account:

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

The ________ is a record containing all accounts used by a company as well as the transactions and ending balances of each of the accounts.

The financial statement that summarizes the changes in the retained earnings account is called the balance sheet.

Identify the account below that impacts the Equity of a business:

Jason Hope decided to open a hotel in his hometown.Prepare journal entries to record the following transactions.Hope uses the accounts Room Rental Revenue and Event Revenue.All expenses for special events are recorded as Event Expense.(Omit explanations.)

Which of the following is not a step in the accounting process?

The second step in the analyzing and recording process is to record the transactions and events in the book of original entry,called the ________.

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

Identify the statement below that is correct.

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

Based on the following trial balance for Sally's Salon,prepare an income statement,statement of retained earnings,and a balance sheet.Sally Crawford,the sole stockholder,made no additional investments in the company during the year.

The higher a company's debt ratio,the lower the risk of a company not being able to meet its obligations.

Introducing Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

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