Exam 7: Accounting Information Systems

The following information was taken from Royce Corporation's adjusted trial balance on December 31,2010. Required: (A)Prepare the closing entries for Royce (B.)Prepare the income statement. (C.)Prepare the December 31 balance sheet.

(Essay)

5.0/5

(78)

Question 41

Which of the following association of accounts and statements is not correct?

(Multiple Choice)

4.9/5

(86)

Question 42

Any event reported on the income statement has impacted the balance sheet.Explain why this is true.

(Essay)

4.9/5

(80)

Question 43

Which of the following could not be an adjusting entry?

(Multiple Choice)

4.7/5

(90)

Question 44

Match the combination of changes in the accounting equation described below with the events listed below.

Paid dividend to owners

Liabilities decrease; Owners' equity increases

Customer pays bill in cash

Assets increase; Assets decrease

Major client goes out of business

Not recorded in accounting system

Correct Answer:

Verified

Paid dividend to owners

Customer pays bill in cash

Major client goes out of business

Purchased a truck by paying cash

Owner made contribution to firm

Paid note that came due

Creditor takes stock in the company in exchange for retiring debt

Borrowed cash

(Matching)

4.8/5

(79)

Question 45

The unadjusted trial balance of T.C.Corporation is presented below,together with the information for necessary adjustments.Prepare the required adjusting entries and indicate what effect each adjustment has on net income - increase,decrease,or no effect. Adjustment data: (a.) Unused supplies on hand, $1,050 (b.) Unexpired rent, $1,250 (c.) Depreciation on equipment, $1,200 (d.) Portion of unearned fees not yet earned, $1,900 (e.) Accrued interest on the note, $600 (f.) Fees earned but not recorded and not received, $1,600

(Essay)

4.8/5

(73)

Question 46

In a computer-based transaction system which of the following serves as the journal?

(Multiple Choice)

4.8/5

(75)

Question 47

Match the following terms with the descriptions below.

The process of recording the appropriate part of a journal entry to the affected account in the ledger.

Contra account

A place where the results of events affecting that item are recorded.

Post-closing trial balance

A time period between financial statements.

Posting

Correct Answer:

Verified

The process of recording the appropriate part of a journal entry to the affected account in the ledger.

A place where the results of events affecting that item are recorded.

A time period between financial statements.

A listing of all general ledger accounts and their respective balances to ensure that debits equal credits.

A collection of specific asset, liability, and owners' equity accounts.

An account with an opposite balance to the normal balance of its associated account.

A ledger in a computer-based transaction system.

A journal in a computer-based transaction system.

The recorded effect of an accounting event.

The journal used to record both the account(s) to be debited and the accounts(s) to be credited.

An asset, liability, or owners' equity account whose balance is carried over from year to year.

A trial balance prepared after the closing entries have been posted.

(Matching)

4.9/5

(89)

Question 48

Some accounts are increased with debits and others with credits.Wouldn't recording transactions be easier if all accounts were increased with debits and decreased with credits?

(Essay)

4.8/5

(77)

Question 49

Answer the following two questions: What are adjusting entries and why are they necessary? What are closing entries and why are they necessary?

(Essay)

4.7/5

(69)

Question 50

Which of the following accounts would normally have a debit balance?

(Multiple Choice)

4.7/5

(80)

Question 51

A firm billed clients for services rendered.How would this affect the fundamental accounting equation?

(Multiple Choice)

4.8/5

(81)

Question 52

How would the balance sheet and income statement be affected if a $2,000 accrued expense was recorded as $3,000?

(Essay)

4.8/5

(76)

Question 53

Which of the following is not an accounting event?

(Multiple Choice)

4.7/5

(84)

Question 54

A company began the month with $400 of supplies and purchased $1,000 more.At the end of the month,$300 of supplies were on hand.The expense for the month was

(Multiple Choice)

4.9/5

(77)

Question 55

Which of the following is an index for the accounts listed in the ledger?

(Multiple Choice)

4.8/5

(75)

Question 56

Expenses are increased with because they owners' equity.

(Multiple Choice)

4.9/5

(88)

Question 57

For each of the following transactions indicate its impact ( + or - )on the accounting equation.

(Short Answer)

5.0/5

(86)

Question 58

A firm paid for goods,which had been purchased in an earlier period.How would this affect assets and equities?

(Multiple Choice)

4.8/5

(68)

Question 59

The following journal entry affected the accounting equation by:

(Multiple Choice)

4.9/5

(81)

Question 60

The following information was taken from Royce Corporation's adjusted trial balance on December 31,2010. Required: (A)Prepare the closing entries for Royce (B.)Prepare the income statement. (C.)Prepare the December 31 balance sheet.

Which of the following association of accounts and statements is not correct?

Any event reported on the income statement has impacted the balance sheet.Explain why this is true.

Which of the following could not be an adjusting entry?

In a computer-based transaction system which of the following serves as the journal?

Some accounts are increased with debits and others with credits.Wouldn't recording transactions be easier if all accounts were increased with debits and decreased with credits?

Answer the following two questions: What are adjusting entries and why are they necessary? What are closing entries and why are they necessary?

Which of the following accounts would normally have a debit balance?

A firm billed clients for services rendered.How would this affect the fundamental accounting equation?

How would the balance sheet and income statement be affected if a $2,000 accrued expense was recorded as $3,000?

Which of the following is not an accounting event?

A company began the month with $400 of supplies and purchased $1,000 more.At the end of the month,$300 of supplies were on hand.The expense for the month was

Which of the following is an index for the accounts listed in the ledger?

Expenses are increased with because they owners' equity.

For each of the following transactions indicate its impact ( + or - )on the accounting equation.

A firm paid for goods,which had been purchased in an earlier period.How would this affect assets and equities?

The following journal entry affected the accounting equation by:

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Exam 7: Accounting Information Systems

The following information was taken from Royce Corporation's adjusted trial balance on December 31,2010. Required: (A)Prepare the closing entries for Royce (B.)Prepare the income statement. (C.)Prepare the December 31 balance sheet.

Which of the following association of accounts and statements is not correct?

Any event reported on the income statement has impacted the balance sheet.Explain why this is true.

Which of the following could not be an adjusting entry?

In a computer-based transaction system which of the following serves as the journal?

Some accounts are increased with debits and others with credits.Wouldn't recording transactions be easier if all accounts were increased with debits and decreased with credits?

Answer the following two questions: What are adjusting entries and why are they necessary? What are closing entries and why are they necessary?

Which of the following accounts would normally have a debit balance?

A firm billed clients for services rendered.How would this affect the fundamental accounting equation?

How would the balance sheet and income statement be affected if a $2,000 accrued expense was recorded as $3,000?

Which of the following is not an accounting event?

A company began the month with $400 of supplies and purchased $1,000 more.At the end of the month,$300 of supplies were on hand.The expense for the month was

Which of the following is an index for the accounts listed in the ledger?

Expenses are increased with ______ because they ______ owners' equity.

For each of the following transactions indicate its impact ( + or - )on the accounting equation.

A firm paid for goods,which had been purchased in an earlier period.How would this affect assets and equities?

The following journal entry affected the accounting equation by:

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Expenses are increased with because they owners' equity.