Question 1

The adjusting entry to accrue interest earned would include a:

Accepted Answer

A) credit to interest payable 
B) debit to interest receivable 
C) debit to cash 
D) credit to interest expense 
A) credit to interest payable 
B) debit to interest receivable 
C) debit to cash 
D) credit to interest expense

Question 2

Match between columns
                        Premises: An adjusting entry that occurs when expenses are incurred in one accounting period and payment is made in a later period.
An adjusting entry that recognizes when a revenue is earned but the payment to the firms will occur in a subsequent accounting period.
An entry made to transfer the balance of temporary accounts to retained earnings and determine net income or loss for a time period.
An adjusting entry that occurs when a company uses previously purchased assets in an attempt to generate revenue in future periods.
An adjusting entry that occurs when a company has been paid in advance for services to be performed in a future period.
An internal entry made to bring up to date the accounts for internal events prior to preparing financial statements.
An organizational scheme used to classify accounts as assets, liabilities, or owners' equity.
An event that management wants to plan and evaluate.

Accepted Answer

The Answer of Business event and Revenue deferral and Closing is...

Question 3

Valhalla Company sold goods on account to a customer for $75,000.The goods cost Valhalla $60,000.How should Valhalla report this transaction?

Accepted Answer

A) Revenue of $75,000; expense $60,000 
B) Revenue,$75,000. 
C) Revenue and operating cash inflows,$15,000. 
D) Revenue,$15,000. 
A) Revenue of $75,000; expense $60,000 
B) Revenue,$75,000. 
C) Revenue and operating cash inflows,$15,000. 
D) Revenue,$15,000.

Question 4

The following journal entry affected the accounting equation by:

Accepted Answer

A) increasing assets and increasing liabilities 
B) decreasing assets and increasing owners' equity 
C) increasing liabilities and decreasing owners' equity 
D) increasing assets and increasing owners' equity 
A) increasing assets and increasing liabilities 
B) decreasing assets and increasing owners' equity 
C) increasing liabilities and decreasing owners' equity 
D) increasing assets and increasing owners' equity

Question 5

All of the following accounts are increased by credits except:

Accepted Answer

A) liabilities 
B) revenues 
C) assets 
D) contributed capital accounts 
A) liabilities 
B) revenues 
C) assets 
D) contributed capital accounts

Question 6

The entry to record the full payment of the premium on a two-year insurance policy would include a:

Accepted Answer

A) debit to insurance expense 
B) debit to prepaid insurance 
C) credit to accounts receivable 
D) credit to accounts payable 
A) debit to insurance expense 
B) debit to prepaid insurance 
C) credit to accounts receivable 
D) credit to accounts payable

Question 7

Which of the following is not a characteristic of an accounting event?

Accepted Answer

A) Must be the result of a management decision. 
B) Must be specific to the entity for which records are being kept. 
C) Must be measurable in monetary term. 
D) Must impact the entity's assets,liabilities,and/or owners' equity. 
A) Must be the result of a management decision. 
B) Must be specific to the entity for which records are being kept. 
C) Must be measurable in monetary term. 
D) Must impact the entity's assets,liabilities,and/or owners' equity.

Question 8

Which of the following could not be an adjusting entry?

Accepted Answer

A) An increase in an expense and a decrease in an asset 
B) A decrease in a liability and an increase in a revenue 
C) A decrease in a asset and a decrease in a liability 
D) An increase in an expense and an increase in a liability 
A) An increase in an expense and a decrease in an asset 
B) A decrease in a liability and an increase in a revenue 
C) A decrease in a asset and a decrease in a liability 
D) An increase in an expense and an increase in a liability

Question 9

A firm billed a customer for services but did not collect cash.What is the effect of this transaction?

Accepted Answer

A) Increases assets,increases revenues 
B) Increases assets,decreases assets 
C) Decreases assets,increases expenses 
D) Decreases assets,decreases liabilities 
A) Increases assets,increases revenues 
B) Increases assets,decreases assets 
C) Decreases assets,increases expenses 
D) Decreases assets,decreases liabilities

Question 10

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

Accepted Answer

The answer of For each of the following transactions indicate...

Question 11

Which of the following events results in a revenue event?

Accepted Answer

A) A customer pays for services to be provided over the next four months. 
B) A customer pays for merchandise previously purchased on account. 
C) A customer purchases merchandise on open account 
D) A bank loan is obtained 
A) A customer pays for services to be provided over the next four months. 
B) A customer pays for merchandise previously purchased on account. 
C) A customer purchases merchandise on open account 
D) A bank loan is obtained

Question 12

The accounts in the ledger are listed in what type of order?

Accepted Answer

A) In the order they appear on the financial statements 
B) Alphabetical 
C) Size of the Account 
D) Random 
A) In the order they appear on the financial statements 
B) Alphabetical 
C) Size of the Account 
D) Random

Question 13

A record of all accounts,showing account activity and cumulative balances is maintained in the:

Accepted Answer

A) general journal 
B) trial balance 
C) general ledger 
D) financial statements 
A) general journal 
B) trial balance 
C) general ledger 
D) financial statements

Question 14

The adjusting entry to record depreciation of a building would be:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 15

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

Accepted Answer

A) Accounts Receivable 
B) Retained Earnings 
C) Inventory 
D) Depreciation Expense 
A) Accounts Receivable 
B) Retained Earnings 
C) Inventory 
D) Depreciation Expense

Question 16

Dividends are listed on the:

Accepted Answer

A) balance sheet 
B) income statement 
C) statement of financial position 
D) statement of retained earnings 
A) balance sheet 
B) income statement 
C) statement of financial position 
D) statement of retained earnings

Question 17

Which of the following is not a part of the formal process of recording accounting events?

Accepted Answer

A) general journal 
B) general ledger 
C) T-Accounts 
D) All of the above are part of the formal process of recording accounting events. 
A) general journal 
B) general ledger 
C) T-Accounts 
D) All of the above are part of the formal process of recording accounting events.

Question 18

On November 1,2010 Clyde Corp recieved $6,000 for six months rent in advance.What is the appropriate adjusting entry for December 31,2010?

Accepted Answer

A) No adjustment needed because no cash paid. 
B) Unearned Rent $4,000
Rent Expense $4,000 
C) Unearned Rent $2,000
Rent Income $2,000 
D) Cash $2,000
Rent Income $2,000 
A) No adjustment needed because no cash paid. 
B) Unearned Rent $4,000
Rent Expense $4,000 
C) Unearned Rent $2,000
Rent Income $2,000 
D) Cash $2,000
Rent Income $2,000

Question 19

On which financial statement would salaries expense appear?

Accepted Answer

A) statement of stockholders' equity 
B) statement of cash flows 
C) income statement 
D) balance sheet 
A) statement of stockholders' equity 
B) statement of cash flows 
C) income statement 
D) balance sheet

Question 20

All of the following are categories of adjusting entries except:

Accepted Answer

A) accruals 
B) deferrals 
C) estimated allocations 
D) estimated payments 
A) accruals 
B) deferrals 
C) estimated allocations 
D) estimated payments

The adjusting entry to accrue interest earned would include a:

Valhalla Company sold goods on account to a customer for $75,000.The goods cost Valhalla $60,000.How should Valhalla report this transaction?

The following journal entry affected the accounting equation by:

All of the following accounts are increased by credits except:

The entry to record the full payment of the premium on a two-year insurance policy would include a:

Which of the following is not a characteristic of an accounting event?

Which of the following could not be an adjusting entry?

A firm billed a customer for services but did not collect cash.What is the effect of this transaction?

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

Which of the following events results in a revenue event?

The accounts in the ledger are listed in what type of order?

A record of all accounts,showing account activity and cumulative balances is maintained in the:

The adjusting entry to record depreciation of a building would be:

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

Dividends are listed on the:

Which of the following is not a part of the formal process of recording accounting events?

On November 1,2010 Clyde Corp recieved $6,000 for six months rent in advance.What is the appropriate adjusting entry for December 31,2010?

On which financial statement would salaries expense appear?

All of the following are categories of adjusting entries except:

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

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Exam 7: Accounting Information Systems

The adjusting entry to accrue interest earned would include a:

Valhalla Company sold goods on account to a customer for $75,000.The goods cost Valhalla $60,000.How should Valhalla report this transaction?

The following journal entry affected the accounting equation by:

All of the following accounts are increased by credits except:

The entry to record the full payment of the premium on a two-year insurance policy would include a:

Which of the following is not a characteristic of an accounting event?

Which of the following could not be an adjusting entry?

A firm billed a customer for services but did not collect cash.What is the effect of this transaction?

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

Which of the following events results in a revenue event?

The accounts in the ledger are listed in what type of order?

A record of all accounts,showing account activity and cumulative balances is maintained in the:

The adjusting entry to record depreciation of a building would be:

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

Dividends are listed on the:

Which of the following is not a part of the formal process of recording accounting events?

On November 1,2010 Clyde Corp recieved $6,000 for six months rent in advance.What is the appropriate adjusting entry for December 31,2010?

On which financial statement would salaries expense appear?

All of the following are categories of adjusting entries except:

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