Question 1

A ledger

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 2

Which of the following accounts is an asset?

Accepted Answer

A) Service Revenue 
B) Notes Payable 
C) Supplies Expense 
D) Prepaid Rent 
A) Service Revenue 
B) Notes Payable 
C) Supplies Expense 
D) Prepaid Rent

Question 3

A revenue account

Accepted Answer

A) is increased with a debit. 
B) is decreased with a credit. 
C) is increased with a credit. 
D) has a normal balance of a debit. 
A) is increased with a debit. 
B) is decreased with a credit. 
C) is increased with a credit. 
D) has a normal balance of a debit.

Question 4

For the basic accounting equation to stay in balance, each transaction recorded must

Accepted Answer

A) affect two or less accounts. 
B) affect two or more accounts. 
C) always affect exactly two accounts. 
D) affect the same number of asset and liability accounts. 
A) affect two or less accounts. 
B) affect two or more accounts. 
C) always affect exactly two accounts. 
D) affect the same number of asset and liability accounts.

Question 5

During 2022, its first year of operations, Jane's Bakery had revenues of $130,000 and expenses of $66,000.The business paid cash dividends of $36,000.What is the balance in Retained Earnings at December 31, 2022?

Accepted Answer

A) $0 
B) $36,000 debit 
C) $28,000 credit 
D) $64,000 credit 
A) $0 
B) $36,000 debit 
C) $28,000 credit 
D) $64,000 credit

Question 6

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Accepted Answer

A) A debit balance in the Dividends account 
B) A credit balance in an expense account 
C) A credit balance in a liabilities account 
D) A credit balance in a revenue account 
A) A debit balance in the Dividends account 
B) A credit balance in an expense account 
C) A credit balance in a liabilities account 
D) A credit balance in a revenue account

Question 7

In the first month of operations, the total of the debit entries to the Cash account amounted to $7,000 and the total of the credit entries to the Cash account amounted to $4,000.At the end of the month, the Cash account has a

Accepted Answer

A) $4,000 credit balance. 
B) $7,000 debit balance. 
C) $3,000 debit balance. 
D) $3,000 credit balance. 
A) $4,000 credit balance. 
B) $7,000 debit balance. 
C) $3,000 debit balance. 
D) $3,000 credit balance.

Question 8

An account consists of

Accepted Answer

A) a title, a debit balance, and a credit balance. 
B) a title, a left side, and a debit balance. 
C) a title, a debit side, and a credit side. 
D) a title, a right side, and a debit balance. 
A) a title, a debit balance, and a credit balance. 
B) a title, a left side, and a debit balance. 
C) a title, a debit side, and a credit side. 
D) a title, a right side, and a debit balance.

Question 9

Debits

Accepted Answer

A) increase both assets and liabilities. 
B) decrease both assets and liabilities. 
C) increase assets and decrease liabilities. 
D) decrease assets and increase liabilities. 
A) increase both assets and liabilities. 
B) decrease both assets and liabilities. 
C) increase assets and decrease liabilities. 
D) decrease assets and increase liabilities.

Question 10

During January 2022, Carey Services Inc.paid a cash dividends of $2,000.This transaction

Accepted Answer

A) reduces stockholders' equity by $2,000. 
B) increases stockholders' equity by $2,000. 
C) reduces net income by $2,000. 
D) increases expenses by $2,000. 
A) reduces stockholders' equity by $2,000. 
B) increases stockholders' equity by $2,000. 
C) reduces net income by $2,000. 
D) increases expenses by $2,000.

Question 11

A revenue generally

Accepted Answer

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

Question 12

Which of the following accounts has a normal credit balance?

Accepted Answer

A) Prepaid Rent 
B) Notes Receivable 
C) Rent Revenue 
D) Rent Expense 
A) Prepaid Rent 
B) Notes Receivable 
C) Rent Revenue 
D) Rent Expense

Question 13

An account will have a credit balance if the

Accepted Answer

A) credits exceed the debits. 
B) first transaction entered was a credit. 
C) debits exceed the credits. 
D) last transaction entered was a credit. 
A) credits exceed the debits. 
B) first transaction entered was a credit. 
C) debits exceed the credits. 
D) last transaction entered was a credit.

Question 14

The accountant for Mega Stores, Inc.should have recorded the following correct entry:

Accepted Answer

The answer of The accountant for Mega Stores, Inc.should have...

Question 15

A journal is an accounting record in which transactions are initially recorded.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?

Accepted Answer

A) Prepaid Insurance and Dividends 
B) Dividends and Interest Revenue 
C) Interest Payable and Common Stock 
D) Advertising Expense and Land 
A) Prepaid Insurance and Dividends 
B) Dividends and Interest Revenue 
C) Interest Payable and Common Stock 
D) Advertising Expense and Land

Question 17

Assets normally show

Accepted Answer

A) credit balances. 
B) debit balances. 
C) debit and credit balances. 
D) debit or credit balances. 
A) credit balances. 
B) debit balances. 
C) debit and credit balances. 
D) debit or credit balances.

Question 18

Collection on an account receivable will increase both cash and accounts receivable.

Accepted Answer

A) True 
 B)False

Question 19

Collection of a $600 Accounts Receivable

Accepted Answer

A) increases an asset $600; decreases an asset $600. 
B) increases an asset $600; decreases a liability $600. 
C) decreases a liability $600; increases stockholders' equity $600. 
D) decreases an asset $600; decreases a liability $600. 
A) increases an asset $600; decreases an asset $600. 
B) increases an asset $600; decreases a liability $600. 
C) decreases a liability $600; increases stockholders' equity $600. 
D) decreases an asset $600; decreases a liability $600.

Question 20

The usual ordering of accounts in the general ledger is

Accepted Answer

A) assets, liabilities, stockholders' equity, revenues, and expenses. 
B) assets, liabilities, stockholders' equity, expenses, and revenues. 
C) liabilities, assets, stockholders' equity, revenues, and expenses. 
D) stockholders' equity, assets, liabilities, expenses, and revenues. 
A) assets, liabilities, stockholders' equity, revenues, and expenses. 
B) assets, liabilities, stockholders' equity, expenses, and revenues. 
C) liabilities, assets, stockholders' equity, revenues, and expenses. 
D) stockholders' equity, assets, liabilities, expenses, and revenues.

A ledger

Which of the following accounts is an asset?

A revenue account

For the basic accounting equation to stay in balance, each transaction recorded must

During 2022, its first year of operations, Jane's Bakery had revenues of $130,000 and expenses of $66,000.The business paid cash dividends of $36,000.What is the balance in Retained Earnings at December 31, 2022?

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

In the first month of operations, the total of the debit entries to the Cash account amounted to $7,000 and the total of the credit entries to the Cash account amounted to $4,000.At the end of the month, the Cash account has a

An account consists of

Debits

During January 2022, Carey Services Inc.paid a cash dividends of $2,000.This transaction

A revenue generally

Which of the following accounts has a normal credit balance?

An account will have a credit balance if the

The accountant for Mega Stores, Inc.should have recorded the following correct entry:

A journal is an accounting record in which transactions are initially recorded.

Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?

Assets normally show

Collection on an account receivable will increase both cash and accounts receivable.

Collection of a $600 Accounts Receivable

The usual ordering of accounts in the general ledger is

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 ledger

Which of the following accounts is an asset?

A revenue account

For the basic accounting equation to stay in balance, each transaction recorded must

During 2022, its first year of operations, Jane's Bakery had revenues of $130,000 and expenses of $66,000.The business paid cash dividends of $36,000.What is the balance in Retained Earnings at December 31, 2022?

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

In the first month of operations, the total of the debit entries to the Cash account amounted to $7,000 and the total of the credit entries to the Cash account amounted to $4,000.At the end of the month, the Cash account has a

An account consists of

Debits

During January 2022, Carey Services Inc.paid a cash dividends of $2,000.This transaction

A revenue generally

Which of the following accounts has a normal credit balance?

An account will have a credit balance if the

The accountant for Mega Stores, Inc.should have recorded the following correct entry:

A journal is an accounting record in which transactions are initially recorded.

Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?

Assets normally show

Collection on an account receivable will increase both cash and accounts receivable.

Collection of a $600 Accounts Receivable

The usual ordering of accounts in the general ledger is

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