Question 1

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

Accepted Answer

A) Double-entry accounting. 
B) Posting. 
C) Balancing an account. 
D) Journalizing. 
E) Not required unless debits do not equal credits. 
A) Double-entry accounting. 
B) Posting. 
C) Balancing an account. 
D) Journalizing. 
E) Not required unless debits do not equal credits.

Question 2

The amount of net income is added on the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 3

Figgaro Company's accounts and their balances,as of the end of August,are included below.All accounts have normal balances:
   a.Calculate net income.
b.Determine the amount of total equity to be shown on the August 31 balance sheet.

Accepted Answer

The answer of Figgaro Company's accounts and their balances,as of...

Question 4

Elaine Matuszek,the sole stockholder of Matuszek Consulting,received a $2,000 dividend from the company.Identify the general journal entry below that Matuszek Consulting will make to record the transaction.

Accepted Answer

A)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 2,000 & \
\hline \text { Cash } & & 2,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Common Stock } & 2,000 & \
\hline \text { Cash } & & 2,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 2,000 & \
\hline \text { Common Stock } & & 2,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 2,000 & \
\hline \text { Common Stock } & & 2,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 2,000 & \
\hline \text { Dividends } & & 2,000 \
\hline
\end{array}$ 
A)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 2,000 & \
\hline \text { Cash } & & 2,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Common Stock } & 2,000 & \
\hline \text { Cash } & & 2,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 2,000 & \
\hline \text { Common Stock } & & 2,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 2,000 & \
\hline \text { Common Stock } & & 2,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 2,000 & \
\hline \text { Dividends } & & 2,000 \
\hline
\end{array}$

Question 5

A business's source documents may include all of the following except:

Accepted Answer

A) Sales tickets. 
B) Ledgers. 
C) Checks. 
D) Purchase orders. 
E) Bank statements. 
A) Sales tickets. 
B) Ledgers. 
C) Checks. 
D) Purchase orders. 
E) Bank statements.

Question 6

Ralph Pine Consulting received its telephone bill in the amount of $300,and immediately paid it.Which of the following general journal entries will Pine Consulting make to record this transaction?

Accepted Answer

A) Debit Telephone Expense,$300; Credit Cash,$300. 
B) Debit Telephone Expense,$300; Credit Accounts Payable,$300. 
C) Debit Cash,$300; Credit Telephone Expense,$300. 
D) Debit Accounts Payable,$300; Credit Telephone Expense,$300. 
E) Debit Prepaid Expense,$300; Credit Cash,$300. 
A) Debit Telephone Expense,$300; Credit Cash,$300. 
B) Debit Telephone Expense,$300; Credit Accounts Payable,$300. 
C) Debit Cash,$300; Credit Telephone Expense,$300. 
D) Debit Accounts Payable,$300; Credit Telephone Expense,$300. 
E) Debit Prepaid Expense,$300; Credit Cash,$300.

Question 7

A debit entry is always an increase in the account.

Accepted Answer

A) True 
 B)False

Question 8

Miley Block is a building consultant.Shown below are (a)several accounts in her ledger with each account preceded by an identification number,and (b)several transactions completed by Block.Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.

Accepted Answer

The answer of Miley Block is a building consultant.Shown below...

Question 9

ABC Company made a $2,500 payment on account,to satisfy a previously recorded account payable.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of ABC Company made a $2,500 payment on...

Question 10

________ requires that each transaction affect,and be recorded in,at least two accounts.It also means that total amounts debited must equal total amounts credited for each transaction.

Accepted Answer

double-ent

Question 11

Select the account below that normally has a credit balance.

Accepted Answer

A) Cash. 
B) Office Equipment. 
C) Wages Payable. 
D) Dividends. 
E) Sales Salaries Expense. 
A) Cash. 
B) Office Equipment. 
C) Wages Payable. 
D) Dividends. 
E) Sales Salaries Expense.

Question 12

A law firm billed a client $1,800 for work performed in the current month.Which of the following general journal entries will the firm make to record this transaction?

Accepted Answer

A) Debit Accounts Receivable,$1,800; credit Unearned Legal Fees Revenue,$1,800. 
B) Debit Cash,$1,800; credit Unearned Legal Fees Revenue,$1,800. 
C) Debit Legal Fees Revenue,$1,800; credit Accounts Receivable,$1,800. 
D) Debit Accounts Receivable,$1,800; credit Legal Fees Revenue,$1,800. 
E) Debit Cash,$1,800; credit Accounts Receivable,$1,800. 
A) Debit Accounts Receivable,$1,800; credit Unearned Legal Fees Revenue,$1,800. 
B) Debit Cash,$1,800; credit Unearned Legal Fees Revenue,$1,800. 
C) Debit Legal Fees Revenue,$1,800; credit Accounts Receivable,$1,800. 
D) Debit Accounts Receivable,$1,800; credit Legal Fees Revenue,$1,800. 
E) Debit Cash,$1,800; credit Accounts Receivable,$1,800.

Question 13

Spafford Services,Inc.provides services to clients.On May 1,a client prepaid Spafford Services $30,000 for 6-months services in advance.Spafford Services' general journal entry to record this transaction will include a:

Accepted Answer

A) Debit to Unearned Management Fees for $30,000. 
B) Credit to Management Fees Earned for $30,000. 
C) Credit to Cash for $30,000. 
D) Credit to Unearned Management Fees for $30,000. 
E) Debit to Management Fees Earned for $30,000. 
A) Debit to Unearned Management Fees for $30,000. 
B) Credit to Management Fees Earned for $30,000. 
C) Credit to Cash for $30,000. 
D) Credit to Unearned Management Fees for $30,000. 
E) Debit to Management Fees Earned for $30,000.

Question 14

Dividends paid to stockholders are a business expense.

Accepted Answer

A) True 
 B)False

Question 15

Explain how accounts are used in recording information about a business's transactions.

Accepted Answer

Accounts are classified into three gener

Question 16

An account's balance is the difference between the total debits and total credits for the account,including any beginning balance.

Accepted Answer

A) True 
 B)False

Question 17

Elaine Matuszek,the sole stockholder of Matuszek Consulting,started the business by investing $40,000 cash.Identify the general journal entry below that Matuszek Consulting will make to record the transaction.

Accepted Answer

A)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 40,000 & \
\hline \text { Common Stock } & & 40,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Common Stock } & 40,000 & \
\hline \text { Cash } & & 40,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Investments } & 40,000 & \
\hline \text { Cash } & & 40,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Investments } & 40,000 & \
\hline \text { Common Stock } & & 40,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 40,000 & \
\hline \text { Increased Equity } & & 40,000 \
\hline
\end{array}$ 
A)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 40,000 & \
\hline \text { Common Stock } & & 40,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Common Stock } & 40,000 & \
\hline \text { Cash } & & 40,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Investments } & 40,000 & \
\hline \text { Cash } & & 40,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Investments } & 40,000 & \
\hline \text { Common Stock } & & 40,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 40,000 & \
\hline \text { Increased Equity } & & 40,000 \
\hline
\end{array}$

Question 18

S.Green Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1.Given the choices below,determine the general journal entry that S.Green Consulting will make to record the cash payment.Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.

Accepted Answer

A)  $\begin{array}{|l|r|r|}
\hline \text { Insurance Expense } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 2,500 & \
\hline \text { Insurance Expense } & & 2,500 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 2,500 & \
\hline \text { Prepaid Insurance } & & 2,500 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Prepaid Insurance } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Insurance Expense } & 2,500 & \
\hline \text { Prepaid Insurance } & & 2,500 \
\hline
\end{array}$ 
A)  $\begin{array}{|l|r|r|}
\hline \text { Insurance Expense } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 2,500 & \
\hline \text { Insurance Expense } & & 2,500 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 2,500 & \
\hline \text { Prepaid Insurance } & & 2,500 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Prepaid Insurance } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Insurance Expense } & 2,500 & \
\hline \text { Prepaid Insurance } & & 2,500 \
\hline
\end{array}$

Question 19

________documents identify and describe transactions and events and provide objective evidence and amounts for recording.

Accepted Answer

The answer of ________documents identify and describe transactions and events...

Question 20

The debt ratio is calculated by dividing total assets by total liabilities.

Accepted Answer

A) True 
 B)False

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

The amount of net income is added on the statement of retained earnings.

Figgaro Company's accounts and their balances,as of the end of August,are included below.All accounts have normal balances: a.Calculate net income. b.Determine the amount of total equity to be shown on the August 31 balance sheet.

Elaine Matuszek,the sole stockholder of Matuszek Consulting,received a $2,000 dividend from the company.Identify the general journal entry below that Matuszek Consulting will make to record the transaction.

A business's source documents may include all of the following except:

Ralph Pine Consulting received its telephone bill in the amount of $300,and immediately paid it.Which of the following general journal entries will Pine Consulting make to record this transaction?

A debit entry is always an increase in the account.

ABC Company made a $2,500 payment on account,to satisfy a previously recorded account payable.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

________ requires that each transaction affect,and be recorded in,at least two accounts.It also means that total amounts debited must equal total amounts credited for each transaction.

Select the account below that normally has a credit balance.

A law firm billed a client $1,800 for work performed in the current month.Which of the following general journal entries will the firm make to record this transaction?

Spafford Services,Inc.provides services to clients.On May 1,a client prepaid Spafford Services $30,000 for 6-months services in advance.Spafford Services' general journal entry to record this transaction will include a:

Dividends paid to stockholders are a business expense.

Explain how accounts are used in recording information about a business's transactions.

An account's balance is the difference between the total debits and total credits for the account,including any beginning balance.

Elaine Matuszek,the sole stockholder of Matuszek Consulting,started the business by investing $40,000 cash.Identify the general journal entry below that Matuszek Consulting will make to record the transaction.

________documents identify and describe transactions and events and provide objective evidence and amounts for recording.

The debt ratio is calculated by dividing total assets by total liabilities.

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

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

The amount of net income is added on the statement of retained earnings.

Figgaro Company's accounts and their balances,as of the end of August,are included below.All accounts have normal balances: a.Calculate net income. b.Determine the amount of total equity to be shown on the August 31 balance sheet.

Elaine Matuszek,the sole stockholder of Matuszek Consulting,received a $2,000 dividend from the company.Identify the general journal entry below that Matuszek Consulting will make to record the transaction.

A business's source documents may include all of the following except:

Ralph Pine Consulting received its telephone bill in the amount of $300,and immediately paid it.Which of the following general journal entries will Pine Consulting make to record this transaction?

A debit entry is always an increase in the account.

ABC Company made a $2,500 payment on account,to satisfy a previously recorded account payable.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

________ requires that each transaction affect,and be recorded in,at least two accounts.It also means that total amounts debited must equal total amounts credited for each transaction.

Select the account below that normally has a credit balance.

A law firm billed a client $1,800 for work performed in the current month.Which of the following general journal entries will the firm make to record this transaction?

Spafford Services,Inc.provides services to clients.On May 1,a client prepaid Spafford Services $30,000 for 6-months services in advance.Spafford Services' general journal entry to record this transaction will include a:

Dividends paid to stockholders are a business expense.

Explain how accounts are used in recording information about a business's transactions.

An account's balance is the difference between the total debits and total credits for the account,including any beginning balance.

Elaine Matuszek,the sole stockholder of Matuszek Consulting,started the business by investing $40,000 cash.Identify the general journal entry below that Matuszek Consulting will make to record the transaction.

________documents identify and describe transactions and events and provide objective evidence and amounts for recording.

The debt ratio is calculated by dividing total assets by total liabilities.

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