Question 1

A payment of a portion of an accounts payable will

Accepted Answer

A) not affect total assets. 
B) increase liabilities. 
C) not affect stockholders' equity. 
D) decrease net income. 
A) not affect total assets. 
B) increase liabilities. 
C) not affect stockholders' equity. 
D) decrease net income.

Question 2

After transaction information has been recorded in the journal, it is transferred to the

Accepted Answer

A) trial balance. 
B) income statement. 
C) general journal. 
D) ledger. 
A) trial balance. 
B) income statement. 
C) general journal. 
D) ledger.

Question 3

Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the same manner?

Accepted Answer

A) Salaries and Wages Expense and Notes Payable 
B) Common Stock and Rent Expense 
C) Prepaid Rent and Advertising Expense 
D) Service Revenue and Equipment 
A) Salaries and Wages Expense and Notes Payable 
B) Common Stock and Rent Expense 
C) Prepaid Rent and Advertising Expense 
D) Service Revenue and Equipment

Question 4

The account balance is the difference in total dollars between total debit amounts and total credit amounts.

Accepted Answer

A) True 
 B)False

Question 5

Which accounts normally have debit balances?

Accepted Answer

A) Assets, expenses, and revenues 
B) Assets, expense, and retained earnings 
C) Assets, liabilities, and dividends 
D) Assets, expenses, and dividends 
A) Assets, expenses, and revenues 
B) Assets, expense, and retained earnings 
C) Assets, liabilities, and dividends 
D) Assets, expenses, and dividends

Question 6

The purchase of an asset on credit

Accepted Answer

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

Question 7

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Accepted Answer

A) True 
 B)False

Question 8

Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not?

Accepted Answer

A) Yes, they are treated as revenue at the time of receipt because the company has access to the cash. 
B) No, the amount of revenue cannot be adequately determined until the company completes the work. 
C) Yes, the intent of the company is to perform the work and the customer is confident that the services will be completed. 
D) No, revenue cannot be recognized until the performance obligation is satisfied. 
A) Yes, they are treated as revenue at the time of receipt because the company has access to the cash. 
B) No, the amount of revenue cannot be adequately determined until the company completes the work. 
C) Yes, the intent of the company is to perform the work and the customer is confident that the services will be completed. 
D) No, revenue cannot be recognized until the performance obligation is satisfied.

Question 9

Posting is performed by transferring information from the

Accepted Answer

A) source documents to the journal. 
B) ledger to the journal. 
C) source documents to the ledger. 
D) journal to the ledger. 
A) source documents to the journal. 
B) ledger to the journal. 
C) source documents to the ledger. 
D) journal to the ledger.

Question 10

At February 1, 2022, the balance in Goebel Inc.'s supplies account was $3,500.During February.Goebel purchased supplies of $3,000 and used supplies of $4,000.At the end of February, the balance in the Supplies account should be

Accepted Answer

A) $3,500 debit. 
B) $4,500 credit. 
C) $10,500 debit. 
D) $2,500 debit. 
A) $3,500 debit. 
B) $4,500 credit. 
C) $10,500 debit. 
D) $2,500 debit.

Question 11

Assets are decreased with a credit.

Accepted Answer

A) True 
 B)False

Question 12

Unearned Service Revenue is classified as a liability on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 14

Prepaid expenses are assets.

Accepted Answer

A) True 
 B)False

Question 15

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

Question 16

Transactions in a journal are initially recorded in

Accepted Answer

A) account number order. 
B) dollar amount order. 
C) alphabetical order. 
D) chronological order. 
A) account number order. 
B) dollar amount order. 
C) alphabetical order. 
D) chronological order.

Question 17

A credit is not the normal balance for which account listed below?

Accepted Answer

A) Common Stock 
B) Revenue 
C) Accounts Payable 
D) Dividends 
A) Common Stock 
B) Revenue 
C) Accounts Payable 
D) Dividends

Question 18

Economic events that require recording in the financial statements are called accounting transactions.

Accepted Answer

A) True 
 B)False

Question 19

Virginian Enterprises received a bill from Livingstone Landscaping for $14,500.They paid $5,000 on receipt of the bill and agreed to pay the remainder by the end of the month.This transaction

Accepted Answer

A) decreases assets, liabilities and stockholder's equity. 
B) increases liabilities; decreases assets and stockholders' equity. 
C) increases assets and liabilities. 
D) has no effect on the basic accounting equation. 
A) decreases assets, liabilities and stockholder's equity. 
B) increases liabilities; decreases assets and stockholders' equity. 
C) increases assets and liabilities. 
D) has no effect on the basic accounting equation.

Question 20

In recording accounting transactions, evidence that a transaction has taken place is obtained from

Accepted Answer

A) source documents. 
B) the Internal Revenue Service. 
C) the public relations department. 
D) the Securities and Exchange Commission. 
A) source documents. 
B) the Internal Revenue Service. 
C) the public relations department. 
D) the Securities and Exchange Commission.

A payment of a portion of an accounts payable will

After transaction information has been recorded in the journal, it is transferred to the

Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the same manner?

The account balance is the difference in total dollars between total debit amounts and total credit amounts.

Which accounts normally have debit balances?

The purchase of an asset on credit

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not?

Posting is performed by transferring information from the

At February 1, 2022, the balance in Goebel Inc.'s supplies account was $3,500.During February.Goebel purchased supplies of $3,000 and used supplies of $4,000.At the end of February, the balance in the Supplies account should be

Assets are decreased with a credit.

Unearned Service Revenue is classified as a liability on the balance sheet.

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Prepaid expenses are assets.

The normal balance of all accounts is a debit.

Transactions in a journal are initially recorded in

A credit is not the normal balance for which account listed below?

Economic events that require recording in the financial statements are called accounting transactions.

Virginian Enterprises received a bill from Livingstone Landscaping for $14,500.They paid $5,000 on receipt of the bill and agreed to pay the remainder by the end of the month.This transaction

In recording accounting transactions, evidence that a transaction has taken place is obtained from

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

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Exam 3: The Accounting Information System

A payment of a portion of an accounts payable will

After transaction information has been recorded in the journal, it is transferred to the

Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the same manner?

The account balance is the difference in total dollars between total debit amounts and total credit amounts.

Which accounts normally have debit balances?

The purchase of an asset on credit

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not?

Posting is performed by transferring information from the

At February 1, 2022, the balance in Goebel Inc.'s supplies account was $3,500.During February.Goebel purchased supplies of $3,000 and used supplies of $4,000.At the end of February, the balance in the Supplies account should be

Assets are decreased with a credit.

Unearned Service Revenue is classified as a liability on the balance sheet.

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Prepaid expenses are assets.

The normal balance of all accounts is a debit.

Transactions in a journal are initially recorded in

A credit is not the normal balance for which account listed below?

Economic events that require recording in the financial statements are called accounting transactions.

Virginian Enterprises received a bill from Livingstone Landscaping for $14,500.They paid $5,000 on receipt of the bill and agreed to pay the remainder by the end of the month.This transaction

In recording accounting transactions, evidence that a transaction has taken place is obtained from

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

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