Question 1

The concept that assumes that assets are recorded at the amount to acquire them is called the ____________________ principle.

Accepted Answer

The answer of The concept that assumes that assets are...

Question 2

Which of the following accounts is decreased by a debit entry?

Accepted Answer

A) unearned revenue 
B) prepaid insurance 
C) cash 
D) insurance expense 
A) unearned revenue 
B) prepaid insurance 
C) cash 
D) insurance expense

Question 3

The issuance of common stock increases both ____________________ and stockholders' equity.

Accepted Answer

The answer of The issuance of common stock increases both...

Question 4

A T-account for Cash cannot contain any credits.

Accepted Answer

A) True 
 B)False

Question 5

The payment of salaries to employees will result in a debit to an expense account and a credit to the ___________ account.

Accepted Answer

The answer of The payment of salaries to employees will...

Question 6

Which of the following accounts is increased by a debit entry?

Accepted Answer

A) common stock 
B) equipment 
C) notes payable 
D) service revenue 
A) common stock 
B) equipment 
C) notes payable 
D) service revenue

Question 7

Even though a trial balance reveals that the debits equal the credits, there still may be errors in the company's books.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true regarding economic events?

Accepted Answer

A) The signing of a service contract is an example of an external event that is recorded in the accounting records. 
B) Every event which affects an entity can be identified from a source document. 
C) All internal and external events must be measured with sufficient reliability. 
D) External events involve exchanges between an entity and another entity outside the company. 
A) The signing of a service contract is an example of an external event that is recorded in the accounting records. 
B) Every event which affects an entity can be identified from a source document. 
C) All internal and external events must be measured with sufficient reliability. 
D) External events involve exchanges between an entity and another entity outside the company.

Question 9

Income statement accounts have normal credit balances.

Accepted Answer

A) True 
 B)False

Question 10

HVAC Service
The following transactions occurred during  
-Refer to HVAC Service. The journal entry to record the bill received from WKRP Radio will include a debit to

Accepted Answer

A) accounts receivable. 
B) cash. 
C) advertising expense. 
D) accounts payable. 
A) accounts receivable. 
B) cash. 
C) advertising expense. 
D) accounts payable.

Question 11

Hesson Properties, Inc.The following transactions occurred during June:  
-Refer to Hesson Properties. What journal entry is required to record the utility bill?

Accepted Answer

The answer of Hesson Properties, Inc.The following transactions occurred during...

Question 12

According to the historical cost principle, assets are always carried at their current market value.

Accepted Answer

A) True 
 B)False

Question 13

The conservatism principle is concerned with the possibility of understating assets or income.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true?

Accepted Answer

A) If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger. 
B) If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. 
C) Posting occurs when numbers in the general ledger accounts are transferred to the general journal. 
D) If the sum of the debit balances equals the sum of the credit balances, this proves that there were no mistakes made in the posting process. 
A) If a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted to the general ledger. 
B) If all transactions are correctly posted to the general ledger, the sum of the accounts with debit balances should be equal to the sum of the accounts with credit balances. 
C) Posting occurs when numbers in the general ledger accounts are transferred to the general journal. 
D) If the sum of the debit balances equals the sum of the credit balances, this proves that there were no mistakes made in the posting process.

Question 15

An entry made to the right side of an account is always a(n)

Accepted Answer

A) debit. 
B) credit. 
C) increase. 
D) decrease. 
A) debit. 
B) credit. 
C) increase. 
D) decrease.

Question 16

Which of the following statements is false regarding the use of source documents?

Accepted Answer

A) Checks and deposit slips are the main source documents backing up the bank statement. 
B) Retailers may use cash register tapes to recognize sales transactions. 
C) Stock certificates provide evidence of being a creditor of the company. 
D) Time cards may be used as a source of information to record wages. 
A) Checks and deposit slips are the main source documents backing up the bank statement. 
B) Retailers may use cash register tapes to recognize sales transactions. 
C) Stock certificates provide evidence of being a creditor of the company. 
D) Time cards may be used as a source of information to record wages.

Question 17

Hesson Properties, Inc.The following transactions occurred during June:  
-Refer to Hesson Properties. What journal entry is required to record the services provided to customers?

Accepted Answer

The answer of Hesson Properties, Inc.The following transactions occurred during...

Question 18

An abbreviated version of an account, which is useful for analyzing the effects of business events, is the

Accepted Answer

A) Chart of Accounts. 
B) T-account. 
C) Journal. 
D) Double-entry system. 
A) Chart of Accounts. 
B) T-account. 
C) Journal. 
D) Double-entry system.

Question 19

Machinery is purchased on credit. What effect does this transaction have on the accounting equation?

Accepted Answer

A) Assets and liabilities increase. 
B) Assets and stockholders' equity increase. 
C) Liabilities increase and stockholders' equity decreases. 
D) Assets and liabilities decrease. 
A) Assets and liabilities increase. 
B) Assets and stockholders' equity increase. 
C) Liabilities increase and stockholders' equity decreases. 
D) Assets and liabilities decrease.

Question 20

The purchase of office supplies from a supplier is an example of an external event.

Accepted Answer

A) True 
 B)False

The concept that assumes that assets are recorded at the amount to acquire them is called the ____________________ principle.

Which of the following accounts is decreased by a debit entry?

The issuance of common stock increases both ____________________ and stockholders' equity.

A T-account for Cash cannot contain any credits.

The payment of salaries to employees will result in a debit to an expense account and a credit to the ___________ account.

Which of the following accounts is increased by a debit entry?

Even though a trial balance reveals that the debits equal the credits, there still may be errors in the company's books.

Which of the following statements is true regarding economic events?

Income statement accounts have normal credit balances.

HVAC Service The following transactions occurred during -Refer to HVAC Service. The journal entry to record the bill received from WKRP Radio will include a debit to

Hesson Properties, Inc.The following transactions occurred during June: -Refer to Hesson Properties. What journal entry is required to record the utility bill?

According to the historical cost principle, assets are always carried at their current market value.

The conservatism principle is concerned with the possibility of understating assets or income.

Which of the following statements is true?

An entry made to the right side of an account is always a(n)

Which of the following statements is false regarding the use of source documents?

Hesson Properties, Inc.The following transactions occurred during June: -Refer to Hesson Properties. What journal entry is required to record the services provided to customers?

An abbreviated version of an account, which is useful for analyzing the effects of business events, is the

Machinery is purchased on credit. What effect does this transaction have on the accounting equation?

The purchase of office supplies from a supplier is an example of an external event.

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

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Exam 2: The Accounting Information System

The concept that assumes that assets are recorded at the amount to acquire them is called the ____________________ principle.

Which of the following accounts is decreased by a debit entry?

The issuance of common stock increases both ____________________ and stockholders' equity.

A T-account for Cash cannot contain any credits.

The payment of salaries to employees will result in a debit to an expense account and a credit to the ___________ account.

Which of the following accounts is increased by a debit entry?

Even though a trial balance reveals that the debits equal the credits, there still may be errors in the company's books.

Which of the following statements is true regarding economic events?

Income statement accounts have normal credit balances.

HVAC Service The following transactions occurred during -Refer to HVAC Service. The journal entry to record the bill received from WKRP Radio will include a debit to

Hesson Properties, Inc.The following transactions occurred during June: -Refer to Hesson Properties. What journal entry is required to record the utility bill?

According to the historical cost principle, assets are always carried at their current market value.

The conservatism principle is concerned with the possibility of understating assets or income.

Which of the following statements is true?

An entry made to the right side of an account is always a(n)

Which of the following statements is false regarding the use of source documents?

Hesson Properties, Inc.The following transactions occurred during June: -Refer to Hesson Properties. What journal entry is required to record the services provided to customers?

An abbreviated version of an account, which is useful for analyzing the effects of business events, is the

Machinery is purchased on credit. What effect does this transaction have on the accounting equation?

The purchase of office supplies from a supplier is an example of an external event.

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