Question 1

The ___________________ is a chronological record of all transactions entered into by a business.

Accepted Answer

The answer of The ___________________ is a chronological record of...

Question 2

Which pair of accounts has the same set of rules for debit and credit entries?

Accepted Answer

A) common stock and accounts payable 
B) salary expense and retained earnings 
C) cash and notes payable 
D) sales revenue and accounts receivable 
A) common stock and accounts payable 
B) salary expense and retained earnings 
C) cash and notes payable 
D) sales revenue and accounts receivable

Question 3

The ____________________ is a list of all the accounts used by an entity.

Accepted Answer

The answer of The ____________________ is a list of all...

Question 4

A company follows the qualitative characteristic of consistency. This means that

Accepted Answer

A) For expenses, the company uses the same account names as used by its competitors. 
B) The company has elected certain accounting principles that can never be changed. 
C) The company applies the same accounting principles each period. 
D) The company applies the same accounting principles as its competitors. 
A) For expenses, the company uses the same account names as used by its competitors. 
B) The company has elected certain accounting principles that can never be changed. 
C) The company applies the same accounting principles each period. 
D) The company applies the same accounting principles as its competitors.

Question 5

Happy Heights Country Club
Selected accounts at July 31 are provided below:
  
-Refer to Happy Heights Country Club. On which date did the country club collect golf lessons revenue in advance?

Accepted Answer

A) July 2nd 
B) July 3rd 
C) July 5th 
D) July 7th 
A) July 2nd 
B) July 3rd 
C) July 5th 
D) July 7th

Question 6

____________________ documents provide the evidence needed in an accounting system to record a transaction.

Accepted Answer

The answer of ____________________ documents provide the evidence needed in...

Question 7

The bookkeeper made the following errors while recording transactions for the period:
A)A purchase of equipment for $450 cash was recorded as a debit to Equipment for $540 and a credit to Cash for $540.
B)The sale of services for cash in the amount of $4,134 was recorded as a debit to Cash for $4,134 and a credit to Service Revenue for $4,314.
C)A purchase of supplies for $200 cash was recorded correctly in the journal but was omitted from the general ledger.
D)The sale of services for credit in the amount of $3,800 was recorded correctly in the journal but was posted twice to the general ledger.
E)$5,500 cash paid for salaries was recorded in the journal as a $5,500 debit to Cash and a $5,500 credit to Salaries Expense.
Indicate whether or not the debit and credit columns of the trial balance will be equal after recording each of these erroneous entries. Then identify the account(s) that will be misstated as a result of these errors and the direction of the misstatement (i.e., understatement or overstatement).

Accepted Answer

A)The trial balance will still balance,

Question 8

Happy Heights Country Club
Selected accounts at July 31 are provided below:
  
-Refer to Happy Heights Country Club. On which date did the country club sell a club membership for cash?

Accepted Answer

A) July 2nd 
B) July 3rd 
C) July 5th 
D) July 7th 
A) July 2nd 
B) July 3rd 
C) July 5th 
D) July 7th

Question 9

During March, Honeybaked Spam purchased supplies for cash. The supplies will be used in April. What effect does this transaction have on the accounting equation at the time the supplies are purchased?

Accepted Answer

A) Assets increase and stockholders' equity decreases 
B) Assets and liabilities increase 
C) There is no effect on the accounting equation, as one asset account increases while another asset account decreases. 
D) There is no effect on the accounting equation, as the transaction should not be recognized until April. 
A) Assets increase and stockholders' equity decreases 
B) Assets and liabilities increase 
C) There is no effect on the accounting equation, as one asset account increases while another asset account decreases. 
D) There is no effect on the accounting equation, as the transaction should not be recognized until April.

Question 10

What type of account is increased with a debit but represents a decrease in retained earnings?

Accepted Answer

A) liability 
B) asset 
C) revenue 
D) dividends 
A) liability 
B) asset 
C) revenue 
D) dividends

Question 11

The going concern assumption infers that a company will continue to operate into the future.

Accepted Answer

A) True 
 B)False

Question 12

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger, it must be posted as a

Accepted Answer

A) debit to the account in the general ledger. 
B) credit to the account in the general ledger. 
C) total amount, without regard to debit or credit, since the general ledger accounts do not have spaces for debit and credit entries. 
D) decrease to the account in the general ledger. 
A) debit to the account in the general ledger. 
B) credit to the account in the general ledger. 
C) total amount, without regard to debit or credit, since the general ledger accounts do not have spaces for debit and credit entries. 
D) decrease to the account in the general ledger.

Question 13

If a company performed services for credit, then the debit side of the journal entry would be to Accounts Payable and the credit would be to Service Revenue.

Accepted Answer

A) True 
 B)False

Question 14

Hatcher Tool Service
The following transactions occurred during June 2019:  
-Refer to Hatcher Tool Service. Set up T-accounts and post each transaction to the T-accounts.

Accepted Answer

The answer of Hatcher Tool Service
The following transactions occurred during...

Question 15

A trial balance is a(n)

Accepted Answer

A) optional financial statement used only by creditors. 
B) tool used to prove the equality of debits and credits in the general ledger. 
C) list of accounts and their balances taken from the chart of accounts. 
D) financial statement which can be used in place of a balance sheet. 
A) optional financial statement used only by creditors. 
B) tool used to prove the equality of debits and credits in the general ledger. 
C) list of accounts and their balances taken from the chart of accounts. 
D) financial statement which can be used in place of a balance sheet.

Question 16

Information that is material means that an error in recording the dollar amount of a transaction would

Accepted Answer

A) likely affect the judgment of someone relying on the financial statements. 
B) not affect the decisions of financial statement users. 
C) not impact a business decision of a creditor. 
D) result in the overstatement of assets or income. 
A) likely affect the judgment of someone relying on the financial statements. 
B) not affect the decisions of financial statement users. 
C) not impact a business decision of a creditor. 
D) result in the overstatement of assets or income.

Question 17

For assets, expenses, and dividend accounts, a credit will _______ the balance in the account.

Accepted Answer

The answer of For assets, expenses, and dividend accounts, a...

Question 18

The time-period assumption is necessary because

Accepted Answer

A) inflation exists and causes confusing swings in financial statement amounts over time. 
B) external users of financial statements want accurately-reported net income for a specific period of time. 
C) financial statements users expect full disclosure of all economic events throughout the entire time period. 
D) it is required by the federal government. 
A) inflation exists and causes confusing swings in financial statement amounts over time. 
B) external users of financial statements want accurately-reported net income for a specific period of time. 
C) financial statements users expect full disclosure of all economic events throughout the entire time period. 
D) it is required by the federal government.

Question 19

The issuance of common stock increases a company's assets and stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 20

A company purchased equipment for $150,000 cash. What is the effect on total assets?

Accepted Answer

A) increase 
B) decrease 
C) no net effect 
D) Cannot be determined from this limited information. 
A) increase 
B) decrease 
C) no net effect 
D) Cannot be determined from this limited information.

The ___________________ is a chronological record of all transactions entered into by a business.

Which pair of accounts has the same set of rules for debit and credit entries?

The ____________________ is a list of all the accounts used by an entity.

A company follows the qualitative characteristic of consistency. This means that

Happy Heights Country Club Selected accounts at July 31 are provided below: -Refer to Happy Heights Country Club. On which date did the country club collect golf lessons revenue in advance?

____________________ documents provide the evidence needed in an accounting system to record a transaction.

Happy Heights Country Club Selected accounts at July 31 are provided below: -Refer to Happy Heights Country Club. On which date did the country club sell a club membership for cash?

During March, Honeybaked Spam purchased supplies for cash. The supplies will be used in April. What effect does this transaction have on the accounting equation at the time the supplies are purchased?

What type of account is increased with a debit but represents a decrease in retained earnings?

The going concern assumption infers that a company will continue to operate into the future.

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger, it must be posted as a

If a company performed services for credit, then the debit side of the journal entry would be to Accounts Payable and the credit would be to Service Revenue.

Hatcher Tool Service The following transactions occurred during June 2019: -Refer to Hatcher Tool Service. Set up T-accounts and post each transaction to the T-accounts.

A trial balance is a(n)

Information that is material means that an error in recording the dollar amount of a transaction would

For assets, expenses, and dividend accounts, a credit will _______ the balance in the account.

The time-period assumption is necessary because

The issuance of common stock increases a company's assets and stockholders' equity.

A company purchased equipment for $150,000 cash. What is the effect on total assets?

Accounting and The Financial Statements

Accrual Accounting

Internal Control And Cash

Sales And Receivables

Cost Of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long Term Liabilities

Stockholders Apos Equity

The Statement Of Cash Flows

Financial Statement Analysis

Finance and Stock Market Equilibrium

Filters

Exam 2: The Accounting Information System

The ___________________ is a chronological record of all transactions entered into by a business.

Which pair of accounts has the same set of rules for debit and credit entries?

The ____________________ is a list of all the accounts used by an entity.

A company follows the qualitative characteristic of consistency. This means that

Happy Heights Country Club Selected accounts at July 31 are provided below: -Refer to Happy Heights Country Club. On which date did the country club collect golf lessons revenue in advance?

____________________ documents provide the evidence needed in an accounting system to record a transaction.

Happy Heights Country Club Selected accounts at July 31 are provided below: -Refer to Happy Heights Country Club. On which date did the country club sell a club membership for cash?

During March, Honeybaked Spam purchased supplies for cash. The supplies will be used in April. What effect does this transaction have on the accounting equation at the time the supplies are purchased?

What type of account is increased with a debit but represents a decrease in retained earnings?

The going concern assumption infers that a company will continue to operate into the future.

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger, it must be posted as a

If a company performed services for credit, then the debit side of the journal entry would be to Accounts Payable and the credit would be to Service Revenue.

Hatcher Tool Service The following transactions occurred during June 2019: -Refer to Hatcher Tool Service. Set up T-accounts and post each transaction to the T-accounts.

A trial balance is a(n)

Information that is material means that an error in recording the dollar amount of a transaction would

For assets, expenses, and dividend accounts, a credit will _______ the balance in the account.

The time-period assumption is necessary because

The issuance of common stock increases a company's assets and stockholders' equity.

A company purchased equipment for $150,000 cash. What is the effect on total assets?

Accounting and The Financial Statements

Accrual Accounting

Internal Control And Cash

Sales And Receivables

Cost Of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long Term Liabilities

Stockholders Apos Equity

The Statement Of Cash Flows

Financial Statement Analysis

Finance and Stock Market Equilibrium

Filters