Question 1

When collection is made on Accounts Receivable,

Accepted Answer

A)  total assets will remain the same. 
B)  stockholders equity will increase. 
C)  total assets will increase. 
D)  total assets will decrease. 
A)  total assets will remain the same. 
B)  stockholders equity will increase. 
C)  total assets will increase. 
D)  total assets will decrease.

Question 2

Posting is the procedure of transferring journal entries to ________________.

Accepted Answer

The answer of Posting is the procedure of transferring journal...

Question 3

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 4

The complete effect of a transaction on the accounts is disclosed in the journal.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is not true?

Accepted Answer

A)  Expenses increase stockholders' equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease stockholders' equity. 
D)  Expenses are a negative factor in the computation of net income. 
A)  Expenses increase stockholders' equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease stockholders' equity. 
D)  Expenses are a negative factor in the computation of net income.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

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 10

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 11

An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased and its normal balance.

Accepted Answer

An account is an individual accounting r

Question 12

Under U.S. GAAP

Accepted Answer

A)  currency signs are generally used in the journal, ledger, trial balance, and financial statements. 
B)  share Capital - Ordinary is referred to as Retained Earnings. 
C)  the statement of financial position is often called the statement of changes in financial position. 
D)  the rules of debits and credits, and the steps in the recording process are the same as under IFRS (International Financial Reporting Standards). 
A)  currency signs are generally used in the journal, ledger, trial balance, and financial statements. 
B)  share Capital - Ordinary is referred to as Retained Earnings. 
C)  the statement of financial position is often called the statement of changes in financial position. 
D)  the rules of debits and credits, and the steps in the recording process are the same as under IFRS (International Financial Reporting Standards).

Question 13

If total assets are increased, there must be a corresponding increase in liabilities or a decrease in stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 14

Winrow Company showed the following balances at the end of its first year: $$\begin{array} { l r } 
\text { Cash } & \$ 11,000 \
\text { Prepaid insurance } & 500 \
\text { Accounts receivable } & 2,500 \
\text { Accounts payable } & 2,000 \
\text { Notes payable } & 3,000 \
\text { Common stock } & 5,000 \
\text { Dividends } & 500 \
\text { Revenues } & 17,000 \
\text { Expenses } & 12,500
\end{array}$$ What did Winrow Company show as total credits on its trial balance?

Accepted Answer

A)  $27,500 
B)  $27,000 
C)  $26,500 
D)  $28,000 
A)  $27,500 
B)  $27,000 
C)  $26,500 
D)  $28,000

Question 15

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

Accepted Answer

The answer of A sales slip, a check, and a...

Question 16

The basic format of a journal would not include a(n)

Accepted Answer

A)  brief explanation. 
B)  account title column. 
C)  T-account. 
D)  date column. 
A)  brief explanation. 
B)  account title column. 
C)  T-account. 
D)  date column.

Question 17

Powers Corporation received a cash advance of $500 from a customer. As a result of this event,

Accepted Answer

A)  assets increased by $500. 
B)  equity increased by $500. 
C)  liabilities decreased by $500. 
D)  Both assets and equity increased by $500. 
A)  assets increased by $500. 
B)  equity increased by $500. 
C)  liabilities decreased by $500. 
D)  Both assets and equity increased by $500.

Question 18

The purchase of an asset for cash

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 19

In a trial balance, all debits are listed before all credits.

Accepted Answer

A) True 
 B)False

Question 20

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.

When collection is made on Accounts Receivable,

Posting is the procedure of transferring journal entries to ________________.

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?

The complete effect of a transaction on the accounts is disclosed in the journal.

Which of the following statements is not true?

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

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

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

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

Assets normally show

An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased and its normal balance.

Under U.S. GAAP

If total assets are increased, there must be a corresponding increase in liabilities or a decrease in stockholders' equity.

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

The basic format of a journal would not include a(n)

Powers Corporation received a cash advance of $500 from a customer. As a result of this event,

The purchase of an asset for cash

In a trial balance, all debits are listed before all credits.

The usual sequence of steps in the recording process is to

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 and Acquisitions in Accounting

Filters

Exam 3: The Accounting Information System

When collection is made on Accounts Receivable,

Posting is the procedure of transferring journal entries to ________________.

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?

The complete effect of a transaction on the accounts is disclosed in the journal.

Which of the following statements is not true?

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

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

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

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

Assets normally show

An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased and its normal balance.

Under U.S. GAAP

If total assets are increased, there must be a corresponding increase in liabilities or a decrease in stockholders' equity.

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

The basic format of a journal would not include a(n)

Powers Corporation received a cash advance of $500 from a customer. As a result of this event,

The purchase of an asset for cash

In a trial balance, all debits are listed before all credits.

The usual sequence of steps in the recording process is to

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 and Acquisitions in Accounting

Filters