Question 1

The usual sequence of steps in the recording process is to

Accepted Answer

A) analyze each transaction, enter the transaction in the journal, and transfer the information to the ledger accounts. 
B) analyze each transaction, enter the transaction in the ledger, and transfer the information to the journal. 
C) analyze each transaction, enter the transaction in the book of accounts, and transfer the information to the journal. 
D) analyze each transaction, enter the transaction in the book of original entry, and transfer the information to the journal. 
A) analyze each transaction, enter the transaction in the journal, and transfer the information to the ledger accounts. 
B) analyze each transaction, enter the transaction in the ledger, and transfer the information to the journal. 
C) analyze each transaction, enter the transaction in the book of accounts, and transfer the information to the journal. 
D) analyze each transaction, enter the transaction in the book of original entry, and transfer the information to the journal.

Question 2

If the Cash account has a credit balance, which of the following statements is true?

Accepted Answer

A) This is the normal balance for cash. 
B) An error has occurred and must be corrected before financial statements can be prepared. 
C) The account needs to be analyzed to determine the reason for the credit balance. 
D) Debit postings exceed the credit postings for the accounting period. 
A) This is the normal balance for cash. 
B) An error has occurred and must be corrected before financial statements can be prepared. 
C) The account needs to be analyzed to determine the reason for the credit balance. 
D) Debit postings exceed the credit postings for the accounting period.

Question 3

A complete journal entry does not show

Accepted Answer

A) the date of the transaction. 
B) the new balance in the accounts affected by the transaction. 
C) a brief explanation of the transaction. 
D) the accounts and amounts to be debited and credited. 
A) the date of the transaction. 
B) the new balance in the accounts affected by the transaction. 
C) a brief explanation of the transaction. 
D) the accounts and amounts to be debited and credited.

Question 4

Management could determine the amounts due from customers by examining which of the following ledger accounts?

Accepted Answer

A) Service Revenue 
B) Accounts Payable 
C) Accounts Receivable 
D) Supplies 
A) Service Revenue 
B) Accounts Payable 
C) Accounts Receivable 
D) Supplies

Question 5

A list of accounts and their balances at a given time is called a(n)

Accepted Answer

A) journal. 
B) posting. 
C) trial balance. 
D) income statement. 
A) journal. 
B) posting. 
C) trial balance. 
D) income statement.

Question 6

Jamal Company began the year 2022 with $126,000 in its Common Stock account and a debit balance in Retained Earnings of $54,000.During the year, the company earned net income of $27,000, and declared and paid $9,000 of dividends.In addition, the company sold additional common stock amounting to $33,000.Based on this information, what should the transaction analysis show for total stockholders' equity at the end of 2022?

Accepted Answer

A) $231,000 
B) $249,000 
C) $123,000 
D) $165,000 
A) $231,000 
B) $249,000 
C) $123,000 
D) $165,000

Question 7

At September 1, 2022, Baxter Inc.reported Retained Earnings of $423,000.During the month, Baxter generated revenues of $60,000, incurred expenses of $36,000, purchased equipment for $15,000 and paid dividends of $6,000.What is the balance in Retained Earnings at September 30, 2022?

Accepted Answer

A) $423,000 debit 
B) $24,000 credit 
C) $426,000 credit 
D) $441,000 credit 
A) $423,000 debit 
B) $24,000 credit 
C) $426,000 credit 
D) $441,000 credit

Question 8

Dividends are classified as an expense.

Accepted Answer

A) True 
 B)False

Question 9

The payment of a liability decreases both cash and accounts payable.

Accepted Answer

A) True 
 B)False

Question 10

If a company pays dividends of $10,000,

Accepted Answer

A) total stockholders' equity will be reduced by $10,000. 
B) net income will be reduced by $10,000. 
C) retained earnings will be reduced by $10,000. 
D) Both retained earnings and total stockholders' equity will be reduced by $10,000. 
A) total stockholders' equity will be reduced by $10,000. 
B) net income will be reduced by $10,000. 
C) retained earnings will be reduced by $10,000. 
D) Both retained earnings and total stockholders' equity will be reduced by $10,000.

Question 11

Which one of the following represents the expanded basic accounting equation?

Accepted Answer

A) Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses 
B) Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues 
C) Assets - Liabilities - Dividends = Common Stock + Revenues - Expenses 
D) Assets = Revenues + Expenses - Liabilities 
A) Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses 
B) Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues 
C) Assets - Liabilities - Dividends = Common Stock + Revenues - Expenses 
D) Assets = Revenues + Expenses - Liabilities

Question 12

An increase in an asset is recorded by a debit.

Accepted Answer

A) True 
 B)False

Question 13

When the columns of the trial balance equal each other, it means that no errors have occurred in recording and posting the transactions.

Accepted Answer

A) True 
 B)False

Question 14

An accountant has debited an asset account for $1,000 and credited a liability account for $500.What can be done to complete the recording of the transaction?

Accepted Answer

A) Nothing further must be done. 
B) Debit a stockholders' equity account for $500. 
C) Debit another asset account for $500. 
D) Credit a different asset account for $500. 
A) Nothing further must be done. 
B) Debit a stockholders' equity account for $500. 
C) Debit another asset account for $500. 
D) Credit a different asset account for $500.

Question 15

An account is a part of the financial information system and is described by each one of the following except

Accepted Answer

A) an account has a debit and credit side. 
B) an account is a source document. 
C) an account consists of three parts. 
D) an account has a title. 
A) an account has a debit and credit side. 
B) an account is a source document. 
C) an account consists of three parts. 
D) an account has a title.

Question 16

When a corporation distributes a dividend, the

Accepted Answer

A) most common form of distribution is a cash dividend. 
B) Dividends account will be increased with a credit. 
C) Retained Earnings account will be directly increased with a debit. 
D) Dividends account will be decreased with a debit. 
A) most common form of distribution is a cash dividend. 
B) Dividends account will be increased with a credit. 
C) Retained Earnings account will be directly increased with a debit. 
D) Dividends account will be decreased with a debit.

Question 17

Debit and credit can be interpreted to mean "bad" and "good", respectively.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following journal entries is recorded correctly and in the basic format?

Accepted Answer

The answer of Which of the following journal entries is...

Question 19

In its simplest form, an account consists of all of the following except

Accepted Answer

A) right (credit) side. 
B) account title. 
C) left side. 
D) explanation column. 
A) right (credit) side. 
B) account title. 
C) left side. 
D) explanation column.

Question 20

All of the following statements regarding the double-entry system are true except

Accepted Answer

A) a two-sided effect of each transaction is recorded in appropriate accounts when using the double-entry system. 
B) the double-entry system provides a logical method for recording transactions. 
C) both sides of the accounting equation must be affected when recording a transaction using the double-entry system. 
D) when using the double-entry system, the sum of all debits to the accounts must equal the sum of all credits. 
A) a two-sided effect of each transaction is recorded in appropriate accounts when using the double-entry system. 
B) the double-entry system provides a logical method for recording transactions. 
C) both sides of the accounting equation must be affected when recording a transaction using the double-entry system. 
D) when using the double-entry system, the sum of all debits to the accounts must equal the sum of all credits.

The usual sequence of steps in the recording process is to

If the Cash account has a credit balance, which of the following statements is true?

A complete journal entry does not show

Management could determine the amounts due from customers by examining which of the following ledger accounts?

A list of accounts and their balances at a given time is called a(n)

At September 1, 2022, Baxter Inc.reported Retained Earnings of $423,000.During the month, Baxter generated revenues of $60,000, incurred expenses of $36,000, purchased equipment for $15,000 and paid dividends of $6,000.What is the balance in Retained Earnings at September 30, 2022?

Dividends are classified as an expense.

The payment of a liability decreases both cash and accounts payable.

If a company pays dividends of $10,000,

Which one of the following represents the expanded basic accounting equation?

An increase in an asset is recorded by a debit.

When the columns of the trial balance equal each other, it means that no errors have occurred in recording and posting the transactions.

An accountant has debited an asset account for $1,000 and credited a liability account for $500.What can be done to complete the recording of the transaction?

An account is a part of the financial information system and is described by each one of the following except

When a corporation distributes a dividend, the

Debit and credit can be interpreted to mean "bad" and "good", respectively.

Which of the following journal entries is recorded correctly and in the basic format?

In its simplest form, an account consists of all of the following except

All of the following statements regarding the double-entry system are true except

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

The usual sequence of steps in the recording process is to

If the Cash account has a credit balance, which of the following statements is true?

A complete journal entry does not show

Management could determine the amounts due from customers by examining which of the following ledger accounts?

A list of accounts and their balances at a given time is called a(n)

At September 1, 2022, Baxter Inc.reported Retained Earnings of $423,000.During the month, Baxter generated revenues of $60,000, incurred expenses of $36,000, purchased equipment for $15,000 and paid dividends of $6,000.What is the balance in Retained Earnings at September 30, 2022?

Dividends are classified as an expense.

The payment of a liability decreases both cash and accounts payable.

If a company pays dividends of $10,000,

Which one of the following represents the expanded basic accounting equation?

An increase in an asset is recorded by a debit.

When the columns of the trial balance equal each other, it means that no errors have occurred in recording and posting the transactions.

An accountant has debited an asset account for $1,000 and credited a liability account for $500.What can be done to complete the recording of the transaction?

An account is a part of the financial information system and is described by each one of the following except

When a corporation distributes a dividend, the

Debit and credit can be interpreted to mean "bad" and "good", respectively.

Which of the following journal entries is recorded correctly and in the basic format?

In its simplest form, an account consists of all of the following except

All of the following statements regarding the double-entry system are true except

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