Question 1

When a company receives a utility bill but will not pay it right away, it should

Accepted Answer

A)  debit Utilities Expense and credit Accounts Receivable. 
B)  debit Utilities Expense and credit Accounts Payable. 
C)  debit Accounts Payable and credit Utilities Expense. 
D)  make no entry until the bill is paid. 
A)  debit Utilities Expense and credit Accounts Receivable. 
B)  debit Utilities Expense and credit Accounts Payable. 
C)  debit Accounts Payable and credit Utilities Expense. 
D)  make no entry until the bill is paid.

Question 2

The recording process occurs

Accepted Answer

A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system. 
A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system.

Question 3

Which account below is not a subdivision of stockholders' equity?

Accepted Answer

A)  Dividends 
B)  Revenues 
C)  Expenses 
D)  Liabilities 
A)  Dividends 
B)  Revenues 
C)  Expenses 
D)  Liabilities

Question 4

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Accepted Answer

A) True 
 B)False

Question 5

Sue Sloan and Associates is a financial planning service. The account balances at December 31, 2014 are shown by the following alphabetical list: $$\begin{array} { l r } 
\text { Accounts Payable } & \$ 34,000 \
\text { Accounts Receivable } & 16,000 \
\text { Buildings } & 120,000 \
\text { Cash } & 24,500 \
\text { Common Stock } & 167,700 \
\text { Equipment } & 79,300 \
\text { Land } & 47,000 \
\text { Notes Payable } & 95,000 \
\text { Notes Receivable } & 9,100 \
\text { Supplies } & 800
\end{array}$$ Instructions
Prepare a trial balance with the accounts arranged in financial statement order.

Accepted Answer

The answer of Sue Sloan and Associates is a financial...

Question 6

Posting

Accepted Answer

A)  transfers journal entries to ledger accounts. 
B)  transfers ledger transaction data to the journal. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  provides a chronological record of transactions. 
A)  transfers journal entries to ledger accounts. 
B)  transfers ledger transaction data to the journal. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  provides a chronological record of transactions.

Question 7

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

Accepted Answer

A)  Common Stock account 
B)  Revenue account 
C)  Liability account 
D)  Dividends account 
A)  Common Stock account 
B)  Revenue account 
C)  Liability account 
D)  Dividends account

Question 8

Which of the following is not part of the recording process?

Accepted Answer

A)  Analyzing transactions 
B)  Preparing a trial balance 
C)  Entering transactions in a journal 
D)  Posting journal entries 
A)  Analyzing transactions 
B)  Preparing a trial balance 
C)  Entering transactions in a journal 
D)  Posting journal entries

Question 9

The chart of accounts is a special ledger used in accounting systems.

Accepted Answer

A) True 
 B)False

Question 10

Selected transactions from the journal of Giambi Inc. during its first month of operations are presented here.   Instructions
(a) Post the transactions to T-accounts.
(b) Prepare a trial balance at August 31, 2014.

Accepted Answer

The answer of Selected transactions from the journal of Giambi...

Question 11

Presented here are five economic events. For each item, indicate whether the event increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and stockholders' equity.

Accepted Answer

The answer of Presented here are five economic events. For...

Question 12

A journal

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 13

The journal is a chronological record of all transactions.

Accepted Answer

A) True 
 B)False

Question 14

The left side of an account is

Accepted Answer

A)  blank. 
B)  a description of the account. 
C)  the debit side. 
D)  the balance of the account. 
A)  blank. 
B)  a description of the account. 
C)  the debit side. 
D)  the balance of the account.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following correctly identifies normal balances of accounts?

Accepted Answer

A) $$\begin{array} { l l } 
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Common Stock } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$$ 
B) $$\begin{array} { l l } 
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Common Stock } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Credit }
\end{array}$$ 
C) $$\begin{array} { l l } 
\text { Assets } & \text { Credit } \
\text { Liabilities } & \text { Debit } \
\text { Common Stock } & \text { Debit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$$ 
D) $$\begin{array} { l l } 
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Common Stock } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$$ 
A) $$\begin{array} { l l } 
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Common Stock } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$$ 
B) $$\begin{array} { l l } 
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Common Stock } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Credit }
\end{array}$$ 
C) $$\begin{array} { l l } 
\text { Assets } & \text { Credit } \
\text { Liabilities } & \text { Debit } \
\text { Common Stock } & \text { Debit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$$ 
D) $$\begin{array} { l l } 
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Common Stock } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$$

Question 17

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 18

Why are expenses increased with a debit?

Accepted Answer

A)  They are always paid by cash, which is credited. Thus expenses are debited. 
B)  They decrease stockholders' equity thus they increase with a debit. 
C)  They have the same rules of debits and credits as the retained earnings account. 
D)  None of the statements are correct. 
A)  They are always paid by cash, which is credited. Thus expenses are debited. 
B)  They decrease stockholders' equity thus they increase with a debit. 
C)  They have the same rules of debits and credits as the retained earnings account. 
D)  None of the statements are correct.

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

Which of the following are the same under both GAAP and IFRS?

Accepted Answer

A)  The journal. 
B)  The ledger. 
C)  The chart of accounts. 
D)  All of these answer choices are correct. 
A)  The journal. 
B)  The ledger. 
C)  The chart of accounts. 
D)  All of these answer choices are correct.

When a company receives a utility bill but will not pay it right away, it should

The recording process occurs

Which account below is not a subdivision of stockholders' equity?

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Posting

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

Which of the following is not part of the recording process?

The chart of accounts is a special ledger used in accounting systems.

Selected transactions from the journal of Giambi Inc. during its first month of operations are presented here. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at August 31, 2014.

Presented here are five economic events. For each item, indicate whether the event increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and stockholders' equity.

A journal

The journal is a chronological record of all transactions.

The left side of an account is

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

Which of the following correctly identifies normal balances of accounts?

Which accounts normally have debit balances?

Why are expenses increased with a debit?

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

Which of the following are the same under both GAAP and IFRS?

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 a company receives a utility bill but will not pay it right away, it should

The recording process occurs

Which account below is not a subdivision of stockholders' equity?

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Posting

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

Which of the following is not part of the recording process?

The chart of accounts is a special ledger used in accounting systems.

Selected transactions from the journal of Giambi Inc. during its first month of operations are presented here. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at August 31, 2014.

Presented here are five economic events. For each item, indicate whether the event increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and stockholders' equity.

A journal

The journal is a chronological record of all transactions.

The left side of an account is

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

Which of the following correctly identifies normal balances of accounts?

Which accounts normally have debit balances?

Why are expenses increased with a debit?

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

Which of the following are the same under both GAAP and IFRS?

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