Question 1

Operating activities are the types of activities the company performs to generate profits.

Accepted Answer

A) True 
 B)False

Question 2

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 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

In recording an accounting transaction in a double-entry system

Accepted Answer

A)  the number of debit accounts must equal the number of credit accounts. 
B)  there must always be entries made on both sides of the accounting equation. 
C)  the amount of the debits must equal the amount of the credits. 
D)  there must only be two accounts affected by any transaction. 
A)  the number of debit accounts must equal the number of credit accounts. 
B)  there must always be entries made on both sides of the accounting equation. 
C)  the amount of the debits must equal the amount of the credits. 
D)  there must only be two accounts affected by any transaction.

Question 5

Which of the following is true?

Accepted Answer

A)  Transaction analysis is completely different under IFRS and GAAP. 
B)  Most transaction are recorded differently under IFRS and GAAP. 
C)  Transaction analysis is the same under IFRS and GAAP, but some transactions are recorded differently. 
D)  All transaction are recorded the same under IFRS and GAAP. 
A)  Transaction analysis is completely different under IFRS and GAAP. 
B)  Most transaction are recorded differently under IFRS and GAAP. 
C)  Transaction analysis is the same under IFRS and GAAP, but some transactions are recorded differently. 
D)  All transaction are recorded the same under IFRS and GAAP.

Question 6

An _______________ is an individual accounting record of increases and decreases in specific assets, liabilities, and stockholders' equity items.

Accepted Answer

The answer of An _______________ is an individual accounting record...

Question 7

During January 2014, 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 8

If services are rendered on account, then

Accepted Answer

A)  assets will decrease. 
B)  liabilities will increase. 
C)  stockholders' equity will increase. 
D)  liabilities will decrease. 
A)  assets will decrease. 
B)  liabilities will increase. 
C)  stockholders' equity will increase. 
D)  liabilities will decrease.

Question 9

An account consists of two parts: (1) a left or debit side and (2) a right or credit side.

Accepted Answer

A) True 
 B)False

Question 10

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 11

An accountant has debited an asset account for $900 and credited a liability account for $600. What can be done to complete the recording of the transaction?

Accepted Answer

A)  Debit a stockholders' equity account for $300. 
B)  Debit another asset account for $300. 
C)  Credit a different asset account for $300. 
D)  Nothing further must be done. 
A)  Debit a stockholders' equity account for $300. 
B)  Debit another asset account for $300. 
C)  Credit a different asset account for $300. 
D)  Nothing further must be done.

Question 12

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 13

The purpose of the ledger is to

Accepted Answer

A)  record chronologically the day's transactions. 
B)  keep a record of documentation to support each transaction. 
C)  keep in one place all information about changes in specific account balances. 
D)  make sure that all assets, liabilities, etc., have normal balances at all times. 
A)  record chronologically the day's transactions. 
B)  keep a record of documentation to support each transaction. 
C)  keep in one place all information about changes in specific account balances. 
D)  make sure that all assets, liabilities, etc., have normal balances at all times.

Question 14

The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2014. $\begin{array}{lrlr}
\text { Accounts Receivable } & \$ 11,400 & \text { Prepaid Insurance } & \$ 1,800 \
\text { Accounts Payable } & 7,400 & \text { Maintenance and Repairs Expense } & 1,200 \
\text { Cash } & 15,940 & \text { Service Revenue } & 15,500 \
\text { Equipment } & 59,360 & \text { Dividends } & 800 \
\text { Utilities Expense } & 950 & \text { Common Stock } & 40,000 \
\text { Insurance Expense } & 600 & \text { Salaries and Wages Expense } & 8,400 \
\text { Notes Payable, due 2017 } & 31,450 & \text { Salaries and Wages Payable } & 900 \
& & \text { Retained Earnings } & 5,200\
&& \text { (July 1, 2014) } 
\end{array}$ Instructions
Prepare an income statement and a retained earnings statement for the month of July 2014, and a classified balance sheet for July 31.

Accepted Answer

The answer of The accounts in the ledger of Dependable...

Question 15

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,400 and the total of the credit entries to the Cash account amounted to $800. The Cash account has a

Accepted Answer

A)  $800 credit balance. 
B)  $1,400 debit balance. 
C)  $600 debit balance. 
D)  $600 credit balance. 
A)  $800 credit balance. 
B)  $1,400 debit balance. 
C)  $600 debit balance. 
D)  $600 credit balance.

Question 16

The five subdivisions of stockholders' equity are ______________, _______________, _________________, __________________, and _________________.

Accepted Answer

common stock retaine

Question 17

A new account is opened for each transaction entered into by a business firm.

Accepted Answer

A) True 
 B)False

Question 18

Under the double-entry system, revenues must always equal expenses.

Accepted Answer

A) True 
 B)False

Question 19

A trial balance will not balance if

Accepted Answer

A)  a correcting journal entry is posted twice. 
B)  a $50 cash dividend is debited to dividends for $500 and credit to cash for $50. 
C)  a $300 payment on accounts payable is debited to accounts payable for $30 and credited to cash for $30. 
D)  a transaction is not posted at all. 
A)  a correcting journal entry is posted twice. 
B)  a $50 cash dividend is debited to dividends for $500 and credit to cash for $50. 
C)  a $300 payment on accounts payable is debited to accounts payable for $30 and credited to cash for $30. 
D)  a transaction is not posted at all.

Question 20

An accounting record that includes a list of accounts and their balances at a given time is called a

Accepted Answer

A)  trial balance. 
B)  general journal. 
C)  general ledger. 
D)  chart of accounts. 
A)  trial balance. 
B)  general journal. 
C)  general ledger. 
D)  chart of accounts.

Operating activities are the types of activities the company performs to generate profits.

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

A revenue account

In recording an accounting transaction in a double-entry system

Which of the following is true?

An _______________ is an individual accounting record of increases and decreases in specific assets, liabilities, and stockholders' equity items.

During January 2014, Carey Services Inc. paid a cash dividends of $2,000. This transaction

If services are rendered on account, then

An account consists of two parts: (1) a left or debit side and (2) a right or credit side.

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

An accountant has debited an asset account for $900 and credited a liability account for $600. What can be done to complete the recording of the transaction?

An account will have a credit balance if the

The purpose of the ledger is to

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,400 and the total of the credit entries to the Cash account amounted to $800. The Cash account has a

The five subdivisions of stockholders' equity are ______, _, _, , and _________.

A new account is opened for each transaction entered into by a business firm.

Under the double-entry system, revenues must always equal expenses.

A trial balance will not balance if

An accounting record that includes a list of accounts and their balances at a given time is called a

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

Operating activities are the types of activities the company performs to generate profits.

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

A revenue account

In recording an accounting transaction in a double-entry system

Which of the following is true?

An _______________ is an individual accounting record of increases and decreases in specific assets, liabilities, and stockholders' equity items.

During January 2014, Carey Services Inc. paid a cash dividends of $2,000. This transaction

If services are rendered on account, then

An account consists of two parts: (1) a left or debit side and (2) a right or credit side.

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

An accountant has debited an asset account for $900 and credited a liability account for $600. What can be done to complete the recording of the transaction?

An account will have a credit balance if the

The purpose of the ledger is to

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,400 and the total of the credit entries to the Cash account amounted to $800. The Cash account has a

The five subdivisions of stockholders' equity are ______________, _______________, _________________, __________________, and _________________.

A new account is opened for each transaction entered into by a business firm.

Under the double-entry system, revenues must always equal expenses.

A trial balance will not balance if

An accounting record that includes a list of accounts and their balances at a given time is called a

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

The five subdivisions of stockholders' equity are ______, _, _, , and _________.