Question 1

Journal entries show the effects of transactions on the elements of the accounting equation,as well as the account balances.

Accepted Answer

A) True 
 B)False

Question 2

When a business issues stock,what does it give to its owners?

Accepted Answer

A)  Note Payable 
B)  Common Stock 
C)  Retained Earnings 
D)  Cash 
A)  Note Payable 
B)  Common Stock 
C)  Retained Earnings 
D)  Cash

Question 3

On March 3,Year 3,your company purchases supplies on account for $4,000.Payment is due on April 2,Year 3.
Required:
Part a.Is this an accounting transaction on March 3,Year 3? Why or why not?
Part b.When this transaction is recorded,what accounts are affected and by how much each?

Accepted Answer

Part a
A transaction is an event or acti

Question 4

Every transaction involves a(n):

Accepted Answer

A)  receiving and giving something of value. 
B)  increase in assets. 
C)  increase in stockholder's equity. 
D)  exchange of promises. 
A)  receiving and giving something of value. 
B)  increase in assets. 
C)  increase in stockholder's equity. 
D)  exchange of promises.

Question 5

Darin Company purchased land at a cost of $15,000 and planned to use it to construct a new storage facility on the property.A short time later,the company changed its plans and sold the property to Dee Company for $15,000.Dee Company signed a note for $15,000 that is due in 60 days.The journal entry prepared by Darin Company to record the sale of the property would include which of the following?

Accepted Answer

A)  Credit to Note Receivable 
B)  Debit to Cash 
C)  Credit to Land 
D)  Debit to Accounts Payable 
A)  Credit to Note Receivable 
B)  Debit to Cash 
C)  Credit to Land 
D)  Debit to Accounts Payable

Question 6

Which of the following statements about transaction analysis is correct?

Accepted Answer

A)  Transactions are analyzed from the standpoint of the owners. 
B)  All business activities are considered to be accounting transactions. 
C)  The transaction amount is determined for each exchange based on the cost of the items given and received. 
D)  A business needs journal entries only to show how transactions affect the balance sheet. 
A)  Transactions are analyzed from the standpoint of the owners. 
B)  All business activities are considered to be accounting transactions. 
C)  The transaction amount is determined for each exchange based on the cost of the items given and received. 
D)  A business needs journal entries only to show how transactions affect the balance sheet.

Question 7

The Accounts Payable account:

Accepted Answer

A)  has a normal credit balance. 
B)  is increased by a debit. 
C)  is an asset. 
D)  is increased when a company receives cash from customers. 
A)  has a normal credit balance. 
B)  is increased by a debit. 
C)  is an asset. 
D)  is increased when a company receives cash from customers.

Question 8

The list of account names and reference numbers that the company will use when accounting for transactions is called the chart of accounts.

Accepted Answer

A) True 
 B)False

Question 9

The general ledger is an internal report that lists all the accounts and their balances and is used to check that total debits equals total credits.

Accepted Answer

A) True 
 B)False

Question 10

-Use the information above to answer the following question.Which line items would be classified as noncurrent on a classified balance sheet?

Accepted Answer

A)  Cash; Supplies; Accounts Payable 
B)  Equipment; Other Assets; Notes Payable 
C)  Supplies; Equipment; Notes Payable 
D)  Accounts Receivable; Equipment; Other Assets 
A)  Cash; Supplies; Accounts Payable 
B)  Equipment; Other Assets; Notes Payable 
C)  Supplies; Equipment; Notes Payable 
D)  Accounts Receivable; Equipment; Other Assets

Question 11

With a classified balance sheet,current assets are usually listed:

Accepted Answer

A)  in alphabetical order. 
B)  in the order of when the assets were acquired. 
C)  from the largest to smallest dollar amount. 
D)  in the order of liquidity. 
A)  in alphabetical order. 
B)  in the order of when the assets were acquired. 
C)  from the largest to smallest dollar amount. 
D)  in the order of liquidity.

Question 12

Within the debit/credit framework,the best interpretation of the word "credit" is:

Accepted Answer

A)  left side of an account. 
B)  increase side of an account. 
C)  right side of an account. 
D)  decrease side of an account. 
A)  left side of an account. 
B)  increase side of an account. 
C)  right side of an account. 
D)  decrease side of an account.

Question 13

Owners of a company:

Accepted Answer

A)  hold promissory notes as evidence of their ownership claim. 
B)  are entitled to repayment of their investment. 
C)  have a claim that is secondary to creditor's claims. 
D)  have a claim equal to the amount of liabilities a company owes. 
A)  hold promissory notes as evidence of their ownership claim. 
B)  are entitled to repayment of their investment. 
C)  have a claim that is secondary to creditor's claims. 
D)  have a claim equal to the amount of liabilities a company owes.

Journal entries show the effects of transactions on the elements of the accounting equation,as well as the account balances.

When a business issues stock,what does it give to its owners?

On March 3,Year 3,your company purchases supplies on account for $4,000.Payment is due on April 2,Year 3. Required: Part a.Is this an accounting transaction on March 3,Year 3? Why or why not? Part b.When this transaction is recorded,what accounts are affected and by how much each?

Every transaction involves a(n):

Which of the following statements about transaction analysis is correct?

The Accounts Payable account:

The list of account names and reference numbers that the company will use when accounting for transactions is called the chart of accounts.

The general ledger is an internal report that lists all the accounts and their balances and is used to check that total debits equals total credits.

-Use the information above to answer the following question.Which line items would be classified as noncurrent on a classified balance sheet?

With a classified balance sheet,current assets are usually listed:

Within the debit/credit framework,the best interpretation of the word "credit" is:

Owners of a company:

Business Decisions and Financial Accounting

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 2: Reporting Investing and Financing Results on the Balance Sheet

Journal entries show the effects of transactions on the elements of the accounting equation,as well as the account balances.

When a business issues stock,what does it give to its owners?

On March 3,Year 3,your company purchases supplies on account for $4,000.Payment is due on April 2,Year 3. Required: Part a.Is this an accounting transaction on March 3,Year 3? Why or why not? Part b.When this transaction is recorded,what accounts are affected and by how much each?

Every transaction involves a(n):

Which of the following statements about transaction analysis is correct?

The Accounts Payable account:

The list of account names and reference numbers that the company will use when accounting for transactions is called the chart of accounts.

The general ledger is an internal report that lists all the accounts and their balances and is used to check that total debits equals total credits.

-Use the information above to answer the following question.Which line items would be classified as noncurrent on a classified balance sheet?

With a classified balance sheet,current assets are usually listed:

Within the debit/credit framework,the best interpretation of the word "credit" is:

Owners of a company:

Business Decisions and Financial Accounting

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters