Question 1

Conner Sales' total assets and total liabilities increased $600.The transaction could have been:

Accepted Answer

A) purchase of supplies for cash,$400. 
B) purchase of supplies for $800 with a down payment of $200 and the remainder on account. 
C) paid the rent for the month,$700. 
D) None of these answers is correct. 
A) purchase of supplies for cash,$400. 
B) purchase of supplies for $800 with a down payment of $200 and the remainder on account. 
C) paid the rent for the month,$700. 
D) None of these answers is correct.

Question 2

A debit to the Capital account was posted to a revenue account.This would cause:

Accepted Answer

A) assets to be understated. 
B) liabilities to be overstated. 
C) assets to be overstated. 
D) revenue to be understated. 
A) assets to be understated. 
B) liabilities to be overstated. 
C) assets to be overstated. 
D) revenue to be understated.

Question 3

The process that begins with recording business transactions and includes the completion of the financial statements is the:

Accepted Answer

A) operating cycle. 
B) natural business years. 
C) fiscal year. 
D) accounting cycle. 
A) operating cycle. 
B) natural business years. 
C) fiscal year. 
D) accounting cycle.

Question 4

To find an explanation for a transaction,look in the:

Accepted Answer

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

Question 5

The trial balance:

Accepted Answer

A) includes all accounts with a ledger balance. 
B) includes assets,liabilities,capital,withdrawals,revenues and expenses. 
C) ensures that debits equal credits. 
D) All of the above are correct. 
A) includes all accounts with a ledger balance. 
B) includes assets,liabilities,capital,withdrawals,revenues and expenses. 
C) ensures that debits equal credits. 
D) All of the above are correct.

Question 6

The journal entry to record an investment by the owner would most commonly include:

Accepted Answer

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

Question 7

During the month of October,Ford advertised on the Internet.Ford received the bill for $600 in October,but waited until November to pay the advertising expense.The journal entry to record the payment in November is:

Accepted Answer

A) Accounts Payable,debit;Cash,credit 
B) Advertising Expense,debit;Accounts Payable,credit 
C) Advertising Expense,debit;Cash,credit 
D) The journal entry is not made in November. 
A) Accounts Payable,debit;Cash,credit 
B) Advertising Expense,debit;Accounts Payable,credit 
C) Advertising Expense,debit;Cash,credit 
D) The journal entry is not made in November.

Question 8

Describe the difference in information contained in the general journal vs.the general ledger.

Accepted Answer

The general journal provides a listing o

Question 9

Record the following selected transactions for January in a two-column journal,identifying each entry by letter:
(a)Earned $8,000 fees;customer will pay later.
(b)Purchased equipment for $50,000,paying $20,000 in cash and the remainder on credit
(c)Paid $3,000 for rent for January.
(d)Purchased $2,500 of supplies on account.
(e)A.Allen $1,000 investment in the company.
(f)Received $7,000 in cash for fees earned previously.
(g)Paid $1,500 to creditors on account.
(h)Paid wages of $6,250.
(i)Received $7,150 from customers on account.
(j)A.Allen withdrawal of $2,000.

Accepted Answer

The answer of Record the following selected transactions for January...

Question 10

The purpose of posting is to:

Accepted Answer

A) record the transactions in chronological order in the journal. 
B) provide an explanation of the transaction. 
C) update the account balances in the ledger. 
D) correct a previous entry. 
A) record the transactions in chronological order in the journal. 
B) provide an explanation of the transaction. 
C) update the account balances in the ledger. 
D) correct a previous entry.

Question 11

The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 12

A credit to an asset account was posted to a liability account.This would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be understated. 
C) capital to be overstated. 
D) revenue to be overstated. 
A) assets to be overstated. 
B) liabilities to be understated. 
C) capital to be overstated. 
D) revenue to be overstated.

Question 13

If Accounts Payable has been debited,it is most likely that:

Accepted Answer

A) a payment was made on account. 
B) a purchase was made on account. 
C) a charge customer made a payment. 
D) an expense was paid with cash. 
A) a payment was made on account. 
B) a purchase was made on account. 
C) a charge customer made a payment. 
D) an expense was paid with cash.

Question 14

A fiscal year is always January 1 through December 31.

Accepted Answer

A) True 
 B)False

Question 15

Financial statements that are prepared for a period shorter than a year are called:

Accepted Answer

A) accounting period statements. 
B) fiscal year statements. 
C) interim statements. 
D) operating statements. 
A) accounting period statements. 
B) fiscal year statements. 
C) interim statements. 
D) operating statements.

Question 16

If Cash has been debited,it is likely that:

Accepted Answer

A) the owner made an investment. 
B) a charge customer made a payment. 
C) the business borrowed cash from the bank. 
D) All of these are possible. 
A) the owner made an investment. 
B) a charge customer made a payment. 
C) the business borrowed cash from the bank. 
D) All of these are possible.

Question 17

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:

Accepted Answer

A) all of the information from the journal was correctly transferred to the ledger. 
B) all accounts have their correct balances in the ledger. 
C) only the ledger is accurate;the journal may be incorrect. 
D) only that the debit dollar amounts equal the credit dollar amounts. 
A) all of the information from the journal was correctly transferred to the ledger. 
B) all accounts have their correct balances in the ledger. 
C) only the ledger is accurate;the journal may be incorrect. 
D) only that the debit dollar amounts equal the credit dollar amounts.

Question 18

Complete the following questions based on the journal entry below:
   
a)Date of Journal entry: ___________
b)Name of account debited: ___________
c)Name of account credited: ___________
d)Provide an explanation for this entry: ___________
e)Page of Journal: ___________
f)Account number for Cash: ___________
g)Account number for Accounts Receivable: ___________

Accepted Answer

a)June 1
b)Cash
c)Ac

Question 19

The proper sequence used in recording a business transaction is:

Accepted Answer

A) analyze,post,journalize,post the account balance,and complete the reference column in the journal. 
B) analyze,journalize,post,record the account balance,and complete the reference column in the journal. 
C) analyze,journalize,post,complete the reference column in the journal,and record the account balance. 
D) journalize,analyze,post,post the account balance,and complete the reference column in the journal. 
A) analyze,post,journalize,post the account balance,and complete the reference column in the journal. 
B) analyze,journalize,post,record the account balance,and complete the reference column in the journal. 
C) analyze,journalize,post,complete the reference column in the journal,and record the account balance. 
D) journalize,analyze,post,post the account balance,and complete the reference column in the journal.

Question 20

A credit to an asset account was posted to an expense account.This would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be understated. 
C) capital to be understated. 
D) expenses to be understated. 
A) assets to be overstated. 
B) liabilities to be understated. 
C) capital to be understated. 
D) expenses to be understated.

Exam 3: Beginning the Accounting Cycle

Conner Sales' total assets and total liabilities increased $600.The transaction could have been:

A debit to the Capital account was posted to a revenue account.This would cause:

The process that begins with recording business transactions and includes the completion of the financial statements is the:

To find an explanation for a transaction,look in the:

The trial balance:

The journal entry to record an investment by the owner would most commonly include:

During the month of October,Ford advertised on the Internet.Ford received the bill for $600 in October,but waited until November to pay the advertising expense.The journal entry to record the payment in November is:

Describe the difference in information contained in the general journal vs.the general ledger.

The purpose of posting is to:

The dollar amount of the debits must be equal to the dollar amount of the credits for each transaction.

A credit to an asset account was posted to a liability account.This would cause:

If Accounts Payable has been debited,it is most likely that:

A fiscal year is always January 1 through December 31.

Financial statements that are prepared for a period shorter than a year are called:

If Cash has been debited,it is likely that:

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means:

The proper sequence used in recording a business transaction is:

A credit to an asset account was posted to an expense account.This would cause:

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

Filters