Question 1

A T-account is

Accepted Answer

A) a way of depicting the basic form of an account. 
B) a special account used instead of a journal. 
C) a special account used instead of a trial balance. 
D) used for accounts that have both a debit and credit balance. 
A) a way of depicting the basic form of an account. 
B) a special account used instead of a journal. 
C) a special account used instead of a trial balance. 
D) used for accounts that have both a debit and credit balance.

Question 2

When a company has performed a service but has not yet received payment, it

Accepted Answer

A) debits accounts receivable and credits service revenue. 
B) debits revenue from services and credits accounts receivable. 
C) debits revenue from services and credits accounts payable. 
D) makes no entry until the cash is received. 
A) debits accounts receivable and credits service revenue. 
B) debits revenue from services and credits accounts receivable. 
C) debits revenue from services and credits accounts payable. 
D) makes no entry until the cash is received.

Question 3

Revenues are a subdivision of stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 4

A revenue account

Accepted Answer

A) is increased by debits. 
B) is decreased by credits. 
C) has a normal balance of a debit. 
D) is increased by credits. 
A) is increased by debits. 
B) is decreased by credits. 
C) has a normal balance of a debit. 
D) is increased by credits.

Question 5

Budke Corporation paid dividends of $5,000.As a result of this event, the

Accepted Answer

A) Dividends account was increased by $5,000. 
B) Dividends account was decreased by $5,000. 
C) Cash account was increased by $5,000. 
D) Cash account was increased and the Dividends account was decreased by $5,000. 
A) Dividends account was increased by $5,000. 
B) Dividends account was decreased by $5,000. 
C) Cash account was increased by $5,000. 
D) Cash account was increased and the Dividends account was decreased by $5,000.

Question 6

The primary purpose of the trial balance is to

Accepted Answer

A) disclose the complete effect of a transaction in one place. 
B) make sure a journal entry is not posted twice. 
C) transfer journal entries to the ledger accounts. 
D) prove the equality of the debit and credit amounts after posting. 
A) disclose the complete effect of a transaction in one place. 
B) make sure a journal entry is not posted twice. 
C) transfer journal entries to the ledger accounts. 
D) prove the equality of the debit and credit amounts after posting.

Question 7

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder.The journal entry should include a

Accepted Answer

A) debit to Notes Payable. 
B) credit to Cash. 
C) credit to Notes Receivable. 
D) credit to Equipment. 
A) debit to Notes Payable. 
B) credit to Cash. 
C) credit to Notes Receivable. 
D) credit to Equipment.

Question 8

Source documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 9

If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck,

Accepted Answer

A) assets will be increased by $10,000. 
B) equity will be reduced by $40,000. 
C) assets will be increased by $40,000. 
D) assets will be unchanged. 
A) assets will be increased by $10,000. 
B) equity will be reduced by $40,000. 
C) assets will be increased by $40,000. 
D) assets will be unchanged.

Question 10

When a company receives a utility bill but will not pay it right away, it should

Accepted Answer

A) debit Utilities Expense and credit Accounts Receivable. 
B) debit Utilities Expense and credit Accounts Payable. 
C) debit Accounts Payable and credit Utilities Expense. 
D) make no entry until the bill is paid. 
A) debit Utilities Expense and credit Accounts Receivable. 
B) debit Utilities Expense and credit Accounts Payable. 
C) debit Accounts Payable and credit Utilities Expense. 
D) make no entry until the bill is paid.

Question 11

At December 1, 2022, Orear Company's Accounts Receivable balance was $16,800.During December, Orear had credit sales of $45,000 and collected accounts receivable of $36,000.At December 31, 2022, the Accounts Receivable balance is

Accepted Answer

A) $16,800 debit 
B) $25,800 debit 
C) $61,800 debit 
D) $25,800 credit 
A) $16,800 debit 
B) $25,800 debit 
C) $61,800 debit 
D) $25,800 credit

Question 12

At September 1, 2022, Kern Enterprises reported a cash balance of $140,000.During the month, Kern collected cash of $60,000 and made disbursements of $100,000.At September 30, 2022, the cash balance is

Accepted Answer

A) $40,000 credit. 
B) $100,000 credit. 
C) $200,000 debit. 
D) $100,000 debit. 
A) $40,000 credit. 
B) $100,000 credit. 
C) $200,000 debit. 
D) $100,000 debit.

Question 13

A company that receives money in advance of performing a service

Accepted Answer

A) debits Cash and credits Unearned Service Revenue. 
B) debits Unearned Service Revenue and credits Accounts Payable 
C) debits Cash and credits Prepaid Insurance. 
D) debits Cash and credits Accounts Receivable. 
A) debits Cash and credits Unearned Service Revenue. 
B) debits Unearned Service Revenue and credits Accounts Payable 
C) debits Cash and credits Prepaid Insurance. 
D) debits Cash and credits Accounts Receivable.

Question 14

The payment of a liability

Accepted Answer

A) decreases assets and stockholders' equity. 
B) increases assets and decreases liabilities. 
C) decreases assets and increases liabilities. 
D) decreases assets and liabilities. 
A) decreases assets and stockholders' equity. 
B) increases assets and decreases liabilities. 
C) decreases assets and increases liabilities. 
D) decreases assets and liabilities.

Question 15

When a company performs a service but has not yet received payment, it

Accepted Answer

A) debits Service Revenue and credits Accounts Receivable. 
B) debits Accounts Receivable and credits Service Revenue. 
C) debits Service Revenue and credits Accounts Payable. 
D) makes no entry until cash is received. 
A) debits Service Revenue and credits Accounts Receivable. 
B) debits Accounts Receivable and credits Service Revenue. 
C) debits Service Revenue and credits Accounts Payable. 
D) makes no entry until cash is received.

Question 16

Which of the following accounts has a normal debit balance?

Accepted Answer

A) Accounts Payable 
B) Prepaid Rent 
C) Retained Earnings 
D) Common Stock 
A) Accounts Payable 
B) Prepaid Rent 
C) Retained Earnings 
D) Common Stock

Question 17

A journal is not useful for

Accepted Answer

A) disclosing in one place the complete effect of a transaction. 
B) preparing financial statements. 
C) providing a record of transactions. 
D) locating and preventing errors. 
A) disclosing in one place the complete effect of a transaction. 
B) preparing financial statements. 
C) providing a record of transactions. 
D) locating and preventing errors.

Question 18

Which one of the following is not a part of an account?

Accepted Answer

A) Credit side 
B) Trial balance 
C) Debit side 
D) Title 
A) Credit side 
B) Trial balance 
C) Debit side 
D) Title

Question 19

A journal

Accepted Answer

A) contains only asset and liability accounts. 
B) is a collection of the entire group of accounts maintained by a company. 
C) provides a chronological record of transactions. 
D) should show accounts in alphabetical order. 
A) contains only asset and liability accounts. 
B) is a collection of the entire group of accounts maintained by a company. 
C) provides a chronological record of transactions. 
D) should show accounts in alphabetical order.

Question 20

Courtney Company purchased equipment for $1,800 cash.As a result of this event,

Accepted Answer

A) equity decreased by $1,800. 
B) assets increased by $1,800. 
C) total assets remained unchanged. 
D) Both assets and equity decreased by $1,800. 
A) equity decreased by $1,800. 
B) assets increased by $1,800. 
C) total assets remained unchanged. 
D) Both assets and equity decreased by $1,800.

A T-account is

When a company has performed a service but has not yet received payment, it

Revenues are a subdivision of stockholders' equity.

A revenue account

Budke Corporation paid dividends of $5,000.As a result of this event, the

The primary purpose of the trial balance is to

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder.The journal entry should include a

Source documents can provide evidence that a transaction has occurred.

If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck,

When a company receives a utility bill but will not pay it right away, it should

At December 1, 2022, Orear Company's Accounts Receivable balance was $16,800.During December, Orear had credit sales of $45,000 and collected accounts receivable of $36,000.At December 31, 2022, the Accounts Receivable balance is

At September 1, 2022, Kern Enterprises reported a cash balance of $140,000.During the month, Kern collected cash of $60,000 and made disbursements of $100,000.At September 30, 2022, the cash balance is

A company that receives money in advance of performing a service

The payment of a liability

When a company performs a service but has not yet received payment, it

Which of the following accounts has a normal debit balance?

A journal is not useful for

Which one of the following is not a part of an account?

A journal

Courtney Company purchased equipment for $1,800 cash.As a result of this event,

Introduction to Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters

Exam 3: The Accounting Information System

A T-account is

When a company has performed a service but has not yet received payment, it

Revenues are a subdivision of stockholders' equity.

A revenue account

Budke Corporation paid dividends of $5,000.As a result of this event, the

The primary purpose of the trial balance is to

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder.The journal entry should include a

Source documents can provide evidence that a transaction has occurred.

If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck,

When a company receives a utility bill but will not pay it right away, it should

At December 1, 2022, Orear Company's Accounts Receivable balance was $16,800.During December, Orear had credit sales of $45,000 and collected accounts receivable of $36,000.At December 31, 2022, the Accounts Receivable balance is

At September 1, 2022, Kern Enterprises reported a cash balance of $140,000.During the month, Kern collected cash of $60,000 and made disbursements of $100,000.At September 30, 2022, the cash balance is

A company that receives money in advance of performing a service

The payment of a liability

When a company performs a service but has not yet received payment, it

Which of the following accounts has a normal debit balance?

A journal is not useful for

Which one of the following is not a part of an account?

A journal

Courtney Company purchased equipment for $1,800 cash.As a result of this event,

Introduction to Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters