Question 1

A journal provides

Accepted Answer

A) the balances for each account. 
B) information about a transaction in several different places. 
C) a list of all accounts used in the business. 
D) a chronological record of transactions. 
A) the balances for each account. 
B) information about a transaction in several different places. 
C) a list of all accounts used in the business. 
D) a chronological record of transactions.

Question 2

If an individual asset is increased, then

Accepted Answer

A) there could be an equal decrease in a specific liability. 
B) there could be an equal decrease in stockholders' equity. 
C) there could be an equal decrease in another asset. 
D) None of these answer choices are correct. 
A) there could be an equal decrease in a specific liability. 
B) there could be an equal decrease in stockholders' equity. 
C) there could be an equal decrease in another asset. 
D) None of these answer choices are correct.

Question 3

Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities.

Accepted Answer

A) True 
 B)False

Question 4

The normal balance of an asset is a credit.

Accepted Answer

A) True 
 B)False

Question 5

An account consists of two parts: (1) a left or debit side and (2) a right or credit side.

Accepted Answer

A) True 
 B)False

Question 6

For a T account, an account balance is the difference in total dollars between total debit amounts and total credit amounts.

Accepted Answer

A) True 
 B)False

Question 7

If a company buys a $700 machine on credit, this transaction will affect the

Accepted Answer

A) income statement and retained earnings statement only. 
B) income statement only. 
C) income statement, retained earnings statement, and balance sheet. 
D) balance sheet only. 
A) income statement and retained earnings statement only. 
B) income statement only. 
C) income statement, retained earnings statement, and balance sheet. 
D) balance sheet only.

Question 8

All of the following are characteristics of every accounting information system except it is a system

Accepted Answer

A) that collects transaction data. 
B) that processes transaction data. 
C) that communicates financial information to decision makers. 
D) of data storage hardware for the chart of accounts. 
A) that collects transaction data. 
B) that processes transaction data. 
C) that communicates financial information to decision makers. 
D) of data storage hardware for the chart of accounts.

Question 9

Barnes Company showed the following balances at the end of its first year: $$\begin{array}{l}
\text { Cash } \quad \$ 14,000\
\begin{array} { l r } 
\text { Prepaid insurance } & 700 \
\text { Accounts receivable } & 3,500 \
\text { Accounts payable } & 2,800 \
\text { Notes payable } & 4,200 \
\text { Common stock } & 5,400 \
\text { Dividends } & 700 \
\text { Revenues } & 29,000 \
\text { Expenses } & 17,500
\end{array}
\end{array}$$ What amount did Barnes Company show as total credits?

Accepted Answer

A) $42,100 
B) $41,400 
C) $40,700 
D) $42,800 
A) $42,100 
B) $41,400 
C) $40,700 
D) $42,800

Question 10

A paid dividend

Accepted Answer

A) decreases assets and stockholders' equity. 
B) increases assets and stockholders' equity. 
C) increases assets and decreases stockholders' equity. 
D) decreases assets and increases stockholders' equity. 
A) decreases assets and stockholders' equity. 
B) increases assets and stockholders' equity. 
C) increases assets and decreases stockholders' equity. 
D) decreases assets and increases stockholders' equity.

Question 11

Winrow Company showed the following balances at the end of its first year: $$\begin{array} { l r } 
\text { Cash } & \$ 11,000 \
\text { Prepaid insurance } & 500 \
\text { Accounts receivable } & 2,500 \
\text { Accounts payable } & 2,000 \
\text { Notes payable } & 3,000 \
\text { Common stock } & 5,000 \
\text { Dividends } & 500 \
\text { Revenues } & 22,000 \
\text { Expenses } & 12,500
\end{array}$$ What amount did Winrow Company show as total credits?

Accepted Answer

A) $32,500 
B) $32,000 
C) $31,500 
D) $33,000 
A) $32,500 
B) $32,000 
C) $31,500 
D) $33,000

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

On July 7, 2017, Shireman Enterprises received cash $1,400 for services rendered. The entry to record this transaction will include

Accepted Answer

A) a debit to Service Revenue of $1,400. 
B) a credit to Accounts Receivable of $1,400. 
C) a debit to Cash of $1,400. 
D) a credit to Accounts Payable of $1,400. 
A) a debit to Service Revenue of $1,400. 
B) a credit to Accounts Receivable of $1,400. 
C) a debit to Cash of $1,400. 
D) a credit to Accounts Payable of $1,400.

Question 14

A trial balance is a listing of

Accepted Answer

A) transactions in a journal. 
B) the chart of accounts. 
C) general ledger accounts and balances. 
D) the totals from the journal pages. 
A) transactions in a journal. 
B) the chart of accounts. 
C) general ledger accounts and balances. 
D) the totals from the journal pages.

Question 15

Courtney Company purchased equipment for $1,800 cash. As a result of this event,

Accepted Answer

A) equity decreased by $1,800. 
B) assets increased by $1,800. 
C) total assets remained unchanged. 
D) Both assets and equity decreased by $1,800. 
A) equity decreased by $1,800. 
B) assets increased by $1,800. 
C) total assets remained unchanged. 
D) Both assets and equity decreased by $1,800.

Question 16

An accountant has debited an asset account for $800 and credited a liability account for $700. Which of the following would be an incorrect way to complete the recording of the transaction?

Accepted Answer

A) Credit an asset account for $100. 
B) Credit another liability account for $100. 
C) Credit a stockholders' equity account for $100. 
D) Debit a stockholders' equity account for $100. 
A) Credit an asset account for $100. 
B) Credit another liability account for $100. 
C) Credit a stockholders' equity account for $100. 
D) Debit a stockholders' equity account for $100.

Question 17

The ledger accounts are typically arranged in

Accepted Answer

A) chronological order. 
B) alphabetical order. 
C) financial statement order. 
D) order of appearance in the journal. 
A) chronological order. 
B) alphabetical order. 
C) financial statement order. 
D) order of appearance in the journal.

Question 18

A company that receives money in advance of performing a service

Accepted Answer

A) debits cash and credits prepaid services. 
B) debits unearned fees and credits accounts payable. 
C) debits cash and credits unearned service revenue. 
D) debits cash and credits accounts receivable. 
A) debits cash and credits prepaid services. 
B) debits unearned fees and credits accounts payable. 
C) debits cash and credits unearned service revenue. 
D) debits cash and credits accounts receivable.

Question 19

Which of the following statements is true?

Accepted Answer

A) Debits increase assets and increase liabilities. 
B) Credits decrease assets and decrease liabilities. 
C) Credits decrease assets and increase liabilities. 
D) Debits increase liabilities and decrease assets. 
A) Debits increase assets and increase liabilities. 
B) Credits decrease assets and decrease liabilities. 
C) Credits decrease assets and increase liabilities. 
D) Debits increase liabilities and decrease assets.

Question 20

The complete effect of a transaction on the accounts is disclosed in the journal.

Accepted Answer

A) True 
 B)False

Exam 3: The Accounting Information System

A journal provides

If an individual asset is increased, then

Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities.

The normal balance of an asset is a credit.

An account consists of two parts: (1) a left or debit side and (2) a right or credit side.

For a T account, an account balance is the difference in total dollars between total debit amounts and total credit amounts.

If a company buys a $700 machine on credit, this transaction will affect the

All of the following are characteristics of every accounting information system except it is a system

Barnes Company showed the following balances at the end of its first year: Cash \ 14,000 Prepaid insurance 700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Common stock 5,400 Dividends 700 Revenues 29,000 Expenses 17,500 What amount did Barnes Company show as total credits?

A paid dividend

Winrow Company showed the following balances at the end of its first year: Cash \ 11,000 Prepaid insurance 500 Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 5,000 Dividends 500 Revenues 22,000 Expenses 12,500 What amount did Winrow Company show as total credits?

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

On July 7, 2017, Shireman Enterprises received cash $1,400 for services rendered. The entry to record this transaction will include

A trial balance is a listing of

Courtney Company purchased equipment for $1,800 cash. As a result of this event,

An accountant has debited an asset account for $800 and credited a liability account for $700. Which of the following would be an incorrect way to complete the recording of the transaction?

The ledger accounts are typically arranged in

A company that receives money in advance of performing a service

Which of the following statements is true?

The complete effect of a transaction on the accounts is disclosed in the journal.

Introduction to Financial Statements

A Further Look at Financial Statements

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

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