Question 1

An example of a permanent account is the:

Accepted Answer

A) utilities expense account 
B) unearned revenue account 
C) service revenue account 
D) depreciation expense account 
A) utilities expense account 
B) unearned revenue account 
C) service revenue account 
D) depreciation expense account

Question 2

Clio,Inc.has one expense account,salary expense,which is to be closed out at year end.The closing entry would be:

Accepted Answer

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

Question 3

Prepare journal entries to record the following transactions:
(a.)  Purchased $3,500 of supplies on account.
(b.)  Paid $4,800 for a two-year insurance policy.
(c.)  Performed a service and immediately collected $600.
(d.)  Paid the monthly utility bill, $200.
(e.)  Paid one-half of the amount owed for the supplies purchased in (a) above.
(f.)  Performed a service and billed the customer $800.
(g.)  Borrowed $1,000 by signing a note payable.
(h.)  Received the amount owed from the customer of (f) above.

Accepted Answer

The answer of Prepare journal entries to record the following...

Question 4

The ______ lists only the permanent accounts of an organization.

Accepted Answer

A) post-closing trial balance 
B) trial balance 
C) adjusted trial balance 
D) income statement 
A) post-closing trial balance 
B) trial balance 
C) adjusted trial balance 
D) income statement

Question 5

If an adjustment for revenue that has been earned but not recorded was not made

Accepted Answer

A) net income and assets would be understated 
B) liabilities and owners' equity would be understated 
C) assets and owners' equity would be overstated 
D) revenues and liabilities would be overstated 
A) net income and assets would be understated 
B) liabilities and owners' equity would be understated 
C) assets and owners' equity would be overstated 
D) revenues and liabilities would be overstated

Question 6

Accountants use the term "credit" to refer to

Accepted Answer

A) a firm's good accounting events 
B) a reduction in amounts owed 
C) events that increases in accounts 
D) an amount entered on the right-hand side of an account 
A) a firm's good accounting events 
B) a reduction in amounts owed 
C) events that increases in accounts 
D) an amount entered on the right-hand side of an account

Question 7

Which of the following accounts would be closed at the end of a period?

Accepted Answer

A) Sales 
B) Retained Earnings 
C) Unearned Revenue 
D) Prepaid Expense 
A) Sales 
B) Retained Earnings 
C) Unearned Revenue 
D) Prepaid Expense

Question 8

If the year-end depreciation adjustment was not recorded:

Accepted Answer

A) assets and owners' equity would be understated 
B) liabilities and owners' equity would be overstated 
C) assets and net income would be overstated 
D) net income and owners' equity would be understated 
A) assets and owners' equity would be understated 
B) liabilities and owners' equity would be overstated 
C) assets and net income would be overstated 
D) net income and owners' equity would be understated

Question 9

The fact that a trial balance is in balance:

Accepted Answer

A) guarantees that correct accounts have been debited and credited 
B) proves the equality of debits and credits 
C) assures the preparer that all journal entries were made 
D) all of the above are correct 
A) guarantees that correct accounts have been debited and credited 
B) proves the equality of debits and credits 
C) assures the preparer that all journal entries were made 
D) all of the above are correct

Question 10

Which of the following terms is used to refer to balance sheet accounts?

Accepted Answer

A) Permanent accounts 
B) Temporary accounts 
C) Contra accounts 
D) Tangible accounts 
A) Permanent accounts 
B) Temporary accounts 
C) Contra accounts 
D) Tangible accounts

Question 11

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

Accepted Answer

A) debits,decrease 
B) credits,increase 
C) debits,increase 
D) credits,decrease 
A) debits,decrease 
B) credits,increase 
C) debits,increase 
D) credits,decrease

Question 12

A firm issued stock for cash.How would this affect the accounting equation?

Accepted Answer

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

Question 13

When a firm has net income,which of the following is not an appropriate closing entry?

Accepted Answer

A) Debit Sales,credit Income Summary 
B) Debit Retained Earnings,credit Income Summary 
C) Debit Income Summary,credit Insurance Expense 
D) Debit Income Summary,credit Depreciation Expense 
A) Debit Sales,credit Income Summary 
B) Debit Retained Earnings,credit Income Summary 
C) Debit Income Summary,credit Insurance Expense 
D) Debit Income Summary,credit Depreciation Expense

Question 14

Smithville Company purchased machinery four years ago for $24,000.Smithville estimates that the machinery will have a total useful life of six years.What amount will Smithville include in total assets for machinery?

Accepted Answer

A) $24,000 
B) $8,000 
C) $16,000 
D) $4,000 
A) $24,000 
B) $8,000 
C) $16,000 
D) $4,000

Question 15

Palisades Corporation purchased equipment by signing a long-term note payable.What was the effect of this transaction?

Accepted Answer

A) Increased assets and increased liabilities 
B) Increased assets and increased owners' equity. 
C) Increased assets and decreased owners' equity. 
D) Increased owners' equity and decreased liabilities 
A) Increased assets and increased liabilities 
B) Increased assets and increased owners' equity. 
C) Increased assets and decreased owners' equity. 
D) Increased owners' equity and decreased liabilities

Question 16

If a company fails to accrue the appropriate wage expense at the end of the accounting period,

Accepted Answer

A) owners' equity and current assets will both be overstated 
B) current liabilities and current assets will both be understated 
C) net income will be overstated and current liabilities will be understated 
D) current assets will be overstated and net income will be understated 
A) owners' equity and current assets will both be overstated 
B) current liabilities and current assets will both be understated 
C) net income will be overstated and current liabilities will be understated 
D) current assets will be overstated and net income will be understated

Question 17

Place each of the following accounting elements in the financial statement(s)in which it would be reported:
Retained earnings
Net income
Accounts receivable
Unearned fees

Accepted Answer

The answer of Place each of the following accounting elements...

Question 18

Capital stock is listed on the:

Accepted Answer

A) balance sheet only 
B) statement of stockholders' equity only 
C) balance sheet and the income statement 
D) statement of stockholders' equity and the balance sheet 
A) balance sheet only 
B) statement of stockholders' equity only 
C) balance sheet and the income statement 
D) statement of stockholders' equity and the balance sheet

Question 19

A firm received a payment in advance on a customer's special order.What is the effect of this transaction?

Accepted Answer

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

Question 20

Debit and credit mean which of the following. Debit Credit

Accepted Answer

A) .Increase Decrease 
B) Positive Negative 
C) Decrease Increase 
D) Left Right 
A) .Increase Decrease 
B) Positive Negative 
C) Decrease Increase 
D) Left Right

An example of a permanent account is the:

Clio,Inc.has one expense account,salary expense,which is to be closed out at year end.The closing entry would be:

The ______ lists only the permanent accounts of an organization.

If an adjustment for revenue that has been earned but not recorded was not made

Accountants use the term "credit" to refer to

Which of the following accounts would be closed at the end of a period?

If the year-end depreciation adjustment was not recorded:

The fact that a trial balance is in balance:

Which of the following terms is used to refer to balance sheet accounts?

Revenues are increased with because they owners' equity.

A firm issued stock for cash.How would this affect the accounting equation?

When a firm has net income,which of the following is not an appropriate closing entry?

Smithville Company purchased machinery four years ago for $24,000.Smithville estimates that the machinery will have a total useful life of six years.What amount will Smithville include in total assets for machinery?

Palisades Corporation purchased equipment by signing a long-term note payable.What was the effect of this transaction?

If a company fails to accrue the appropriate wage expense at the end of the accounting period,

Place each of the following accounting elements in the financial statement(s)in which it would be reported: Retained earnings Net income Accounts receivable Unearned fees

Capital stock is listed on the:

A firm received a payment in advance on a customer's special order.What is the effect of this transaction?

Debit and credit mean which of the following. Debit Credit

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

An example of a permanent account is the:

Clio,Inc.has one expense account,salary expense,which is to be closed out at year end.The closing entry would be:

The ______ lists only the permanent accounts of an organization.

If an adjustment for revenue that has been earned but not recorded was not made

Accountants use the term "credit" to refer to

Which of the following accounts would be closed at the end of a period?

If the year-end depreciation adjustment was not recorded:

The fact that a trial balance is in balance:

Which of the following terms is used to refer to balance sheet accounts?

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

A firm issued stock for cash.How would this affect the accounting equation?

When a firm has net income,which of the following is not an appropriate closing entry?

Smithville Company purchased machinery four years ago for $24,000.Smithville estimates that the machinery will have a total useful life of six years.What amount will Smithville include in total assets for machinery?

Palisades Corporation purchased equipment by signing a long-term note payable.What was the effect of this transaction?

If a company fails to accrue the appropriate wage expense at the end of the accounting period,

Place each of the following accounting elements in the financial statement(s)in which it would be reported: Retained earnings Net income Accounts receivable Unearned fees

Capital stock is listed on the:

A firm received a payment in advance on a customer's special order.What is the effect of this transaction?

Debit and credit mean which of the following. Debit Credit

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

Revenues are increased with because they owners' equity.