Question 1

In order for accounting information to be useful in making informed decisions, it must be

Accepted Answer

A) internal. 
B) relevant. 
C) reliable. 
D) both relevant and reliable. 
A) internal. 
B) relevant. 
C) reliable. 
D) both relevant and reliable.

Question 2

Happy Heights Country Club
Selected accounts at July 31 are provided below:
  
-Refer to Happy Heights Country Club. Assuming that there are no other transactions, how much was owed to the country club by its members at the end of the month?

Accepted Answer

A) $3,600 
B) $7,200 
C) $1,800 
D) $1,000 
A) $3,600 
B) $7,200 
C) $1,800 
D) $1,000

Question 3

The ____________________ is the file or book that contains all of the company's accounts.

Accepted Answer

The answer of The ____________________ is the file or book...

Question 4

Which organization has the power to set accounting rules for companies whose stock is publicly-traded in the U.S. stock markets, but has delegated its power to another organization?

Accepted Answer

A) International Accounting Standards Board (IAS
B)  
B) Financial Accounting Standards Board (FAS
B)  
C) General Association of Accounting Practitioners (GAAP) 
D) Securities Exchange Commission (SE
C)  
A) International Accounting Standards Board (IAS
B)  
B) Financial Accounting Standards Board (FAS
B)  
C) General Association of Accounting Practitioners (GAAP) 
D) Securities Exchange Commission (SE
C)

Question 5

Which of the following is an internal event?

Accepted Answer

A) Caddie salaries are paid by a country club. 
B) Dividends are distributed to a company's stockholders. 
C) Potatoes used to make French fries in a fast-food restaurant are purchased. 
D) Products are transferred from the assembly area to the painting station. 
A) Caddie salaries are paid by a country club. 
B) Dividends are distributed to a company's stockholders. 
C) Potatoes used to make French fries in a fast-food restaurant are purchased. 
D) Products are transferred from the assembly area to the painting station.

Question 6

What is meant by "generally accepted accounting principles"?

Accepted Answer

Generally accepted accounting principles

Question 7

All of the following accounts have normal credit balances except

Accepted Answer

A) accounts payable. 
B) unearned revenue. 
C) common stock. 
D) inventory. 
A) accounts payable. 
B) unearned revenue. 
C) common stock. 
D) inventory.

Question 8

____________________ is the magnitude of an omission or misstatement in accounting information that will influence the decision of someone relying on the information.

Accepted Answer

The answer of ____________________ is the magnitude of an omission...

Question 9

The various rules and conventions that have evolved over time to guide the preparation of financial statements in the U.S. are called ____________________.

Accepted Answer

Generally

Question 10

Home Accent Interiors
The company's bookkeeper prepared the following journal entries and posted them to the general ledger as indicated in the T-accounts presented. Assume that the dollar amounts and descriptions of the entries are correct.  
-Refer to Home Accent Interiors. Identify the postings to the general ledger that were made incorrectly. Describe how each incorrect posting should have been made. For this problem, assume that the journal entries have been correctly recorded.

Accepted Answer

The bookkeeper incorrectly posted the Ma

Question 11

The accounting equation must balance before and after every accounting transaction.

Accepted Answer

A) True 
 B)False

Question 12

The payment of employee salaries has what effect on the accounting equation?

Accepted Answer

A) assets and stockholders' equity decrease 
B) liabilities and stockholders' equity decrease 
C) assets decrease and liabilities increase 
D) assets increase and liabilities decrease 
A) assets and stockholders' equity decrease 
B) liabilities and stockholders' equity decrease 
C) assets decrease and liabilities increase 
D) assets increase and liabilities decrease

Question 13

Which of the following statements is true?

Accepted Answer

A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account. 
B) The posting of an amount recorded in the general ledger can be verified by referring to the account number listed in the posting reference column on that line in the general journal. 
C) Business transactions are recorded first in the general ledger, then that information is transferred to the general journal. 
D) No explanation is needed for each entry in the general ledger. 
A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account. 
B) The posting of an amount recorded in the general ledger can be verified by referring to the account number listed in the posting reference column on that line in the general journal. 
C) Business transactions are recorded first in the general ledger, then that information is transferred to the general journal. 
D) No explanation is needed for each entry in the general ledger.

Question 14

High Point Furniture Company manufactures furniture. The company has applied for a sizeable loan to expand its operations. Based on the company's annual report, the loan officer concludes that High Point is very profitable and appears to have a strong financial position. However, watching the nightly news on television that evening, the banker discovers that High Point is a defendant in a class action lawsuit related to defective products. Serious injuries were allegedly caused by the company's infant high chairs overturning. The television news report is an example of financial information that is

Accepted Answer

A) predictable. 
B) conservative. 
C) relevant. 
D) comparable. 
A) predictable. 
B) conservative. 
C) relevant. 
D) comparable.

Question 15

Which of the following will not cause a trial balance to be out of balance?

Accepted Answer

A) The balance for the account is incorrectly computed. 
B) A debit entry is posted as a credit. 
C) A credit entry is posted to the wrong account, but still as a credit. 
D) An account is accidentally omitted from the trial balance. 
A) The balance for the account is incorrectly computed. 
B) A debit entry is posted as a credit. 
C) A credit entry is posted to the wrong account, but still as a credit. 
D) An account is accidentally omitted from the trial balance.

Question 16

Four journal entries are presented below. Write an explanation for each entry.

Accepted Answer

A)Cash was received for services provide

Question 17

A revenue account has a normal ___________ balance.

Accepted Answer

The answer of A revenue account has a normal ___________...

Question 18

H&R Clock Company
The following transactions were incurred during July 2019:  
-Refer to H&R Clock Company. Use the following format to indicate the economic effects of each transaction above on the expanded accounting equation. Show the dollar amounts in the appropriate columns and use a plus (+) sign to indicate an increase and a minus (−) sign to indicate a decrease.

Accepted Answer

The answer of H&R Clock Company
The following transactions were incurred...

Question 19

If the sum of the debits is not equal to the sum of the credits in a trial balance, then

Accepted Answer

A) there is no concern because the two amounts are not meant to be equal. 
B) the chart of accounts does not balance. 
C) it is safe to proceed with the preparation of financial statements. 
D) it is likely that an error was made in journalizing or posting transactions or in computing the account balance. 
A) there is no concern because the two amounts are not meant to be equal. 
B) the chart of accounts does not balance. 
C) it is safe to proceed with the preparation of financial statements. 
D) it is likely that an error was made in journalizing or posting transactions or in computing the account balance.

Question 20

The ____________________ is the U.S. federal government agency with the ultimate authority to determine the accounting rules for companies whose stock is sold to the public.

Accepted Answer

Securities

In order for accounting information to be useful in making informed decisions, it must be

Happy Heights Country Club Selected accounts at July 31 are provided below: -Refer to Happy Heights Country Club. Assuming that there are no other transactions, how much was owed to the country club by its members at the end of the month?

The ____________________ is the file or book that contains all of the company's accounts.

Which organization has the power to set accounting rules for companies whose stock is publicly-traded in the U.S. stock markets, but has delegated its power to another organization?

Which of the following is an internal event?

What is meant by "generally accepted accounting principles"?

All of the following accounts have normal credit balances except

____________________ is the magnitude of an omission or misstatement in accounting information that will influence the decision of someone relying on the information.

The various rules and conventions that have evolved over time to guide the preparation of financial statements in the U.S. are called ____________________.

The accounting equation must balance before and after every accounting transaction.

The payment of employee salaries has what effect on the accounting equation?

Which of the following statements is true?

Which of the following will not cause a trial balance to be out of balance?

Four journal entries are presented below. Write an explanation for each entry.

A revenue account has a normal ___________ balance.

If the sum of the debits is not equal to the sum of the credits in a trial balance, then

The ____________________ is the U.S. federal government agency with the ultimate authority to determine the accounting rules for companies whose stock is sold to the public.

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

In order for accounting information to be useful in making informed decisions, it must be

Happy Heights Country Club Selected accounts at July 31 are provided below: -Refer to Happy Heights Country Club. Assuming that there are no other transactions, how much was owed to the country club by its members at the end of the month?

The ____________________ is the file or book that contains all of the company's accounts.

Which organization has the power to set accounting rules for companies whose stock is publicly-traded in the U.S. stock markets, but has delegated its power to another organization?

Which of the following is an internal event?

What is meant by "generally accepted accounting principles"?

All of the following accounts have normal credit balances except

____________________ is the magnitude of an omission or misstatement in accounting information that will influence the decision of someone relying on the information.

The various rules and conventions that have evolved over time to guide the preparation of financial statements in the U.S. are called ____________________.

The accounting equation must balance before and after every accounting transaction.

The payment of employee salaries has what effect on the accounting equation?

Which of the following statements is true?

Which of the following will not cause a trial balance to be out of balance?

Four journal entries are presented below. Write an explanation for each entry.

A revenue account has a normal ___________ balance.

If the sum of the debits is not equal to the sum of the credits in a trial balance, then

The ____________________ is the U.S. federal government agency with the ultimate authority to determine the accounting rules for companies whose stock is sold to the public.

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