Question 1

Interim statements are statements that are usually prepared for a portion of the business's fiscal year.

Accepted Answer

A) True 
 B)False

Question 2

A transaction completed by Norton Company caused a $4,000 increase in both the total assets and the total liabilities.This transaction could have been:

Accepted Answer

A) purchase of office equipment for $12,000,paying $8,000 cash,with the rest on account. 
B) investment by the owner of an additional $4,000. 
C) purchase of office equipment,paying $4,000 cash,and $8,000 on account. 
D) a loan of $5,000,on a $9,000 purchase of equipment with $4,000 down payment. 
A) purchase of office equipment for $12,000,paying $8,000 cash,with the rest on account. 
B) investment by the owner of an additional $4,000. 
C) purchase of office equipment,paying $4,000 cash,and $8,000 on account. 
D) a loan of $5,000,on a $9,000 purchase of equipment with $4,000 down payment.

Question 3

An $1,000 check written for supplies was journalized and posted as $200.The entry to correct this error is:

Accepted Answer

A) debit Supplies,$800;credit Cash,$800. 
B) debit Cash,$800;credit Supplies,$800. 
C) debit Supplies,$200;credit Cash,$200. 
D) debit Cash,$200;credit Cash,$200. 
A) debit Supplies,$800;credit Cash,$800. 
B) debit Cash,$800;credit Supplies,$800. 
C) debit Supplies,$200;credit Cash,$200. 
D) debit Cash,$200;credit Cash,$200.

Question 4

During the month of January,Katelyn invested $9,000 in starting her legal practice.The proper journal entry would be:

Accepted Answer

A) Cash,debit $9,000;Katelyn,Capital,credit $9,000 
B) Accounts Payable,debit $9,000;Cash,credit $9,000 
C) Cash,debit $9,000;Revenue,credit $9,000 
D) Katelyn's Capital,debit $9,000;Cash,credit $9,000 
A) Cash,debit $9,000;Katelyn,Capital,credit $9,000 
B) Accounts Payable,debit $9,000;Cash,credit $9,000 
C) Cash,debit $9,000;Revenue,credit $9,000 
D) Katelyn's Capital,debit $9,000;Cash,credit $9,000

Question 5

All nine transactions for Ross Realty for June,the first month of operation,are recorded in the following T accounts:
   
Prepare a trial balance,listing the accounts and their balance in proper order.

Accepted Answer

The answer of All nine transactions for Ross Realty for...

Question 6

BNL completed a performance and collected revenue of $10,000 not previously billed or recorded.The journal entry to record the collection would be:

Accepted Answer

A) 
$$\begin{array} { | c | c | } 
\hline \text { Accounts Receivable } & 10,000 \
\hline \text { Performance Fees } & 10,000 \
\hline
\end{array}$$ 
B) 
$$\begin{array} { | c | c | } 
\hline \text { Cash } & 10,000 \
\hline \text { Performance Fees } & 10,000 \
\hline
\end{array}$$ 
C) 
$$\begin{array} { | c | l | } 
\hline \text { Accounts Receivable } & 10,000 \
\hline \text { Cash } &  { 10,000 } \
\hline
\end{array}$$ 
D) 
$$\begin{array} { | c | l | } 
\hline \text { Performance Fees } & 10,000 \
\hline \text { Cash } &  { 10,000 } \
\hline
\end{array}$$ 
A) 
$$\begin{array} { | c | c | } 
\hline \text { Accounts Receivable } & 10,000 \
\hline \text { Performance Fees } & 10,000 \
\hline
\end{array}$$ 
B) 
$$\begin{array} { | c | c | } 
\hline \text { Cash } & 10,000 \
\hline \text { Performance Fees } & 10,000 \
\hline
\end{array}$$ 
C) 
$$\begin{array} { | c | l | } 
\hline \text { Accounts Receivable } & 10,000 \
\hline \text { Cash } &  { 10,000 } \
\hline
\end{array}$$ 
D) 
$$\begin{array} { | c | l | } 
\hline \text { Performance Fees } & 10,000 \
\hline \text { Cash } &  { 10,000 } \
\hline
\end{array}$$

Question 7

If Accounts Receivable has been credited,it is most likely that:

Accepted Answer

A) the company collected a payment from a customer. 
B) the company made a payment on account. 
C) the company made a purchase on account. 
D) None of these is possible. 
A) the company collected a payment from a customer. 
B) the company made a payment on account. 
C) the company made a purchase on account. 
D) None of these is possible.

Question 8

The general journal:

Accepted Answer

A) is the book of original entry. 
B) is the book of final entry. 
C) contains account balances. 
D) is completed after the trial balance. 
A) is the book of original entry. 
B) is the book of final entry. 
C) contains account balances. 
D) is completed after the trial balance.

Question 9

Prepare in proper form journal entries for the following transactions.Omit explanations.
October

Accepted Answer

The answer of Prepare in proper form journal entries for...

Question 10

The posting reference column in the journal is used for:

Accepted Answer

A) recording the source documents identification number. 
B) recording the account number to which the entry was posted. 
C) recording the balance when the entry was posted. 
D) recording the initials of the person who did the posting. 
A) recording the source documents identification number. 
B) recording the account number to which the entry was posted. 
C) recording the balance when the entry was posted. 
D) recording the initials of the person who did the posting.

Question 11

The trial balance lists the accounts:

Accepted Answer

A) alphabetically. 
B) in the same order as in the ledger. 
C) all debits first and then credits. 
D) all credits first and then debits. 
A) alphabetically. 
B) in the same order as in the ledger. 
C) all debits first and then credits. 
D) all credits first and then debits.

Question 12

If the business records a number as 179 and it should be 197,this error would be called:

Accepted Answer

A) a rearrangement. 
B) a slide. 
C) a transposition. 
D) None of the above 
A) a rearrangement. 
B) a slide. 
C) a transposition. 
D) None of the above

Question 13

The general journal entry to record the earning of revenue would most commonly include:

Accepted Answer

A) a debit to Accounts Receivable and a credit to Capital. 
B) a debit to Cash and a credit to Capital. 
C) a debit to Fees Earned and a credit to Cash. 
D) a debit to Accounts Receivable and a credit to Fees Earned. 
A) a debit to Accounts Receivable and a credit to Capital. 
B) a debit to Cash and a credit to Capital. 
C) a debit to Fees Earned and a credit to Cash. 
D) a debit to Accounts Receivable and a credit to Fees Earned.

Question 14

Posting is performed by transferring information from the journal to the:

Accepted Answer

A) balance sheet. 
B) trial balance. 
C) ledger. 
D) income statement. 
A) balance sheet. 
B) trial balance. 
C) ledger. 
D) income statement.

Question 15

If Fees Earned has been credited,it is most likely that:

Accepted Answer

A) services were provided. 
B) the owner made an investment. 
C) a correcting entry for the overstatement of revenue was recorded. 
D) All of these are possible. 
A) services were provided. 
B) the owner made an investment. 
C) a correcting entry for the overstatement of revenue was recorded. 
D) All of these are possible.

Question 16

What are interim financial statements?

Accepted Answer

Interim financial statements are prepare

Question 17

If Capital has been credited,it is likely that:

Accepted Answer

A) services were provided to a cash customer. 
B) services were provided to a charge customer. 
C) the owner made an investment. 
D) a payment was made on account. 
A) services were provided to a cash customer. 
B) services were provided to a charge customer. 
C) the owner made an investment. 
D) a payment was made on account.

Question 18

How are credits distinguished from debits in the journal?

Accepted Answer

A) A line separation 
B) A different color 
C) Indenting 
D) There is no distinction. 
A) A line separation 
B) A different color 
C) Indenting 
D) There is no distinction.

Question 19

If Rent Expense has been debited,it is likely that:

Accepted Answer

A) the rent was paid for three months in advance. 
B) a copy of the lease was received. 
C) this month's rent was paid. 
D) All of these are possible. 
A) the rent was paid for three months in advance. 
B) a copy of the lease was received. 
C) this month's rent was paid. 
D) All of these are possible.

Question 20

Which of the following accounts would be debited in a proper journal entry?

Accepted Answer

A) Notes payable when it is increased 
B) Accounts Receivable when it is increased 
C) Cash when it is decreased 
D) Capital when it is increased 
A) Notes payable when it is increased 
B) Accounts Receivable when it is increased 
C) Cash when it is decreased 
D) Capital when it is increased

Exam 3: Beginning the Accounting Cycle

Interim statements are statements that are usually prepared for a portion of the business's fiscal year.

A transaction completed by Norton Company caused a $4,000 increase in both the total assets and the total liabilities.This transaction could have been:

An $1,000 check written for supplies was journalized and posted as $200.The entry to correct this error is:

During the month of January,Katelyn invested $9,000 in starting her legal practice.The proper journal entry would be:

All nine transactions for Ross Realty for June,the first month of operation,are recorded in the following T accounts: Prepare a trial balance,listing the accounts and their balance in proper order.

BNL completed a performance and collected revenue of $10,000 not previously billed or recorded.The journal entry to record the collection would be:

If Accounts Receivable has been credited,it is most likely that:

The general journal:

Prepare in proper form journal entries for the following transactions.Omit explanations. October

The posting reference column in the journal is used for:

The trial balance lists the accounts:

If the business records a number as 179 and it should be 197,this error would be called:

The general journal entry to record the earning of revenue would most commonly include:

Posting is performed by transferring information from the journal to the:

If Fees Earned has been credited,it is most likely that:

What are interim financial statements?

If Capital has been credited,it is likely that:

How are credits distinguished from debits in the journal?

If Rent Expense has been debited,it is likely that:

Which of the following accounts would be debited in a proper journal entry?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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