Question 1

A trial balance is a(an)

Accepted Answer

A)  optional financial statement used only by accountants. 
B)  financial statement which can be used in place of a balance sheet. 
C)  list of accounts and their balances taken from the chart of accounts. 
D)  document used to prove the equality of debits and credits in the general ledger. 
A)  optional financial statement used only by accountants. 
B)  financial statement which can be used in place of a balance sheet. 
C)  list of accounts and their balances taken from the chart of accounts. 
D)  document used to prove the equality of debits and credits in the general ledger.

Question 2

Given a current ratio of 5 to 3, what is the effect of paying a supplier within 30 days of the purchase?

Accepted Answer

A)  The current ratio would increase. 
B)  The current ratio would decrease. 
C)  The current ratio would remain the same. 
D)  Unable to determine. 
A)  The current ratio would increase. 
B)  The current ratio would decrease. 
C)  The current ratio would remain the same. 
D)  Unable to determine.

Question 3

Which of the following transactions does not affect the total assets of Vertican Sailing Corp.?

Accepted Answer

A)  A bill is received for the telephone service used by Horizon Sailing during the past month. 
B)  Dividends are paid by Horizon Sailing. 
C)  Customers are billed for sales made on credit by Horizon Sailing. 
D)  A new computer is purchased on credit by Horizon Sailing. 
A)  A bill is received for the telephone service used by Horizon Sailing during the past month. 
B)  Dividends are paid by Horizon Sailing. 
C)  Customers are billed for sales made on credit by Horizon Sailing. 
D)  A new computer is purchased on credit by Horizon Sailing.

Question 4

Owners of Tri-States Industries, Ralph and Maureen, are sent a dividend check from the company.For this transaction, what is the effect on the accounting equation for Tri-States Industries?

Accepted Answer

A)  Assets decrease and stockholders' equity decreases. 
B)  Assets increase and stockholders' equity increases.. 
C)  Liabilities increase and stockholders' equity decreases. 
D)  Liabilities increase and stockholders' equity decreases 
A)  Assets decrease and stockholders' equity decreases. 
B)  Assets increase and stockholders' equity increases.. 
C)  Liabilities increase and stockholders' equity decreases. 
D)  Liabilities increase and stockholders' equity decreases

Question 5

All transactions refer to external events.

Accepted Answer

A) True 
 B)False

Question 6

Dividends are not a(n) __________________ but a direct reduction of retained earnings.

Accepted Answer

The answer of Dividends are not a(n) __________________ but a...

Question 7

Falcon Services was organized on October 1, 2016.The company received a contribution of $2,000 from each of the two principal owners.During the month, Falcon Services provided services for cash of $1,400 and services on account for $600, received $350 from customers in payment of their accounts, purchased supplies on account for $800 and equipment on account for $1,050, received a utility bill for $150 that will not be paid until November, and paid the full amount due on the equipment.
​
REQUIRED: Show your work to determine the company's Cash balance on October 31, 2016.

Accepted Answer

$4,000 + $

Question 8

A T account for Cash cannot contain any credits.

Accepted Answer

A) True 
 B)False

Question 9

Liabilities and stockholders' equity are ____________________ by debits.

Accepted Answer

The answer of Liabilities and stockholders' equity are ____________________ by...

Question 10

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company hires a new marketing firm for their new product

Accepted Answer

A) Internal event 
B) External event 
C) Not recorded 
A) Internal event 
B) External event 
C) Not recorded

Question 11

Use the selected accounts for Copper Corp.presented below to answer the following question(s). $\begin{array}{lr|} 
& {\text { CASH }} \
\hline 8 / 1 \text { Balance } & 6,000 \
8 / 3 & 500 \
8 / 5 & 400 \
8 / 7 & 900
\end{array}$$\begin{array}{l}
\text { ACCOUNTS RECEIVABLE }\
\begin{array}{ll|ll}
\hline 8 / 2 & 1,800 & 8 / 7 & 900
\end{array}
\end{array}$

$\text { DEPOSITS RECEIVED IN ADVANCE }$
$\begin{array}{l}
\text { (A Liability Account) }\
\begin{array}{r|rr}
\hline  &8/3&500 \
\end{array}
\end{array}$$\begin{array}{l}
\text { SALES }\
\begin{array}{r|rr}
\hline 8 / 2 & 1,800 \
8 / 5 & 400
\end{array}
\end{array}$ ​
-Read the information for Copper Corp. On which date did the country club make a credit sale of club memberships?

Accepted Answer

A)  August 2 
B)  August 3 
C)  August 5 
D)  August 7 
A)  August 2 
B)  August 3 
C)  August 5 
D)  August 7

Question 12

The correct term for an entry made to the left side of an account is

Accepted Answer

A)  Double-entry system 
B)  Debit 
C)  Credit 
D)  Journalizing 
A)  Double-entry system 
B)  Debit 
C)  Credit 
D)  Journalizing

Question 13

A source document is a record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

Accepted Answer

A)  Assets increase only when cash sales are made. 
B)  Stockholders' equity increases only when credit sales are made. 
C)  Assets and stockholders' equity increase when either cash or credit sales are made. 
D)  Assets increase, but stockholders' equity decreases, when either cash or credit sales are made. 
A)  Assets increase only when cash sales are made. 
B)  Stockholders' equity increases only when credit sales are made. 
C)  Assets and stockholders' equity increase when either cash or credit sales are made. 
D)  Assets increase, but stockholders' equity decreases, when either cash or credit sales are made.

Question 15

During the month, services performed for customers on account amounted to $4,500 and collections from customers in payment of their accounts totaled $3,000.At the end of the month, the Accounts Receivable account had a balance of $3,500.What was the Accounts Receivable balance at the beginning of the month? (Show your work using a T account.)

Accepted Answer

The answer of During the month, services performed for customers...

Question 16

Assets and expenses are ____________________ by credits.

Accepted Answer

The answer of Assets and expenses are ____________________ by credits....

Question 17

The left or debit side of a liability account is used to record ____________________.

Accepted Answer

The answer of The left or debit side of a...

Question 18

Which of the following entries causes a decrease in assets and in net income?

Accepted Answer

A)  The entry to record the payment of utilities with cash. 
B)  The entry to record the payment of rent for three months in advance. 
C)  The entry to record accrued wages payable. 
D)  The entry to record revenue earned but not yet received. 
A)  The entry to record the payment of utilities with cash. 
B)  The entry to record the payment of rent for three months in advance. 
C)  The entry to record accrued wages payable. 
D)  The entry to record revenue earned but not yet received.

Question 19

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Income Taxes Payable

Accepted Answer

A) Balance sheet account 
B) Income statement account 
A) Balance sheet account 
B) Income statement account

Question 20

Use the selected accounts for Copper Corp.presented below to answer the following question(s). $\begin{array}{lr|} 
& {\text { CASH }} \
\hline 8 / 1 \text { Balance } & 6,000 \
8 / 3 & 500 \
8 / 5 & 400 \
8 / 7 & 900
\end{array}$$\begin{array}{l}
\text { ACCOUNTS RECEIVABLE }\
\begin{array}{ll|ll}
\hline 8 / 2 & 1,800 & 8 / 7 & 900
\end{array}
\end{array}$

$\text { DEPOSITS RECEIVED IN ADVANCE }$
$\begin{array}{l}
\text { (A Liability Account) }\
\begin{array}{r|rr}
\hline  &8/3&500 \
\end{array}
\end{array}$$\begin{array}{l}
\text { SALES }\
\begin{array}{r|rr}
\hline 8 / 2 & 1,800 \
8 / 5 & 400
\end{array}
\end{array}$ ​
-Read the information about Copper Corp. Which of the following describes the transaction which occurred on August 7?

Accepted Answer

A)  Sold club memberships on credit. 
B)  Cash sales of daily fees. 
C)  Collected an advance deposit in cash. 
D)  Received cash payments of accounts receivable. 
A)  Sold club memberships on credit. 
B)  Cash sales of daily fees. 
C)  Collected an advance deposit in cash. 
D)  Received cash payments of accounts receivable.

A trial balance is a(an)

Given a current ratio of 5 to 3, what is the effect of paying a supplier within 30 days of the purchase?

Which of the following transactions does not affect the total assets of Vertican Sailing Corp.?

Owners of Tri-States Industries, Ralph and Maureen, are sent a dividend check from the company.For this transaction, what is the effect on the accounting equation for Tri-States Industries?

All transactions refer to external events.

Dividends are not a(n) __________________ but a direct reduction of retained earnings.

A T account for Cash cannot contain any credits.

Liabilities and stockholders' equity are ____________________ by debits.

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new marketing firm for their new product

The correct term for an entry made to the left side of an account is

A source document is a record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders' equity.

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

Assets and expenses are ____________________ by credits.

The left or debit side of a liability account is used to record ____________________.

Which of the following entries causes a decrease in assets and in net income?

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Income Taxes Payable

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities, Contingencies, and the True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Exam 3: Processing Accounting Information

A trial balance is a(an)

Given a current ratio of 5 to 3, what is the effect of paying a supplier within 30 days of the purchase?

Which of the following transactions does not affect the total assets of Vertican Sailing Corp.?

Owners of Tri-States Industries, Ralph and Maureen, are sent a dividend check from the company.For this transaction, what is the effect on the accounting equation for Tri-States Industries?

All transactions refer to external events.

Dividends are not a(n) __________________ but a direct reduction of retained earnings.

A T account for Cash cannot contain any credits.

Liabilities and stockholders' equity are ____________________ by debits.

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new marketing firm for their new product

The correct term for an entry made to the left side of an account is

A source document is a record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders' equity.

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

Assets and expenses are ____________________ by credits.

The left or debit side of a liability account is used to record ____________________.

Which of the following entries causes a decrease in assets and in net income?

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Income Taxes Payable

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities, Contingencies, and the True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters