Exam 2: The Accounting Information System

Selected accounts at July 31 are provided below: -Refer to Hesson Properties. What journal entry is required to record the collections on account from customers?

____________________ is the magnitude of an omission or misstatement in accounting information that will influence the decision of someone relying on the information.

Which pair of accounts has the same set of rules for debit and credit entries?

Which of the following is an assumption made in the preparation of the financial statements?

Match the following terms with their correct definition. a.Account f.Debit b.Accounting cycle g.Event c.Chart of accounts h.General ledger d.Cost vs. benefit i.Journal e.Credit j.Trial balance -It does not make good business sense to spend $100 to save $75.

Which of the following statements is true concerning assets?

Which of the following statements is true?

Which of the following is an internal event?

Which pair of accounts has the same set of procedures for debit and credit entries?

If a law firm provides services on account for its clients, both ____________________ and retained earnings will increase.

Selected accounts at July 31 are provided below: -Refer to Hesson Properties. What journal entry is required to record the utility bill?

If a company performed services for credit, then the debit side of the journal entry would be to Accounts Payable and the credit would be to Service Revenue.

Select the choice that describes the type of transaction and whether it should be recorded in the accounting system. (Choices may be used more than once.) a.External event to be recorded as a transaction b.Internal event to be recorded as a transaction c.Event which should not be recognized in the accounting system -Payments are received from customers to whom merchandise was sold on credit.

Several accounts from the financial records of Wynn Linders, Inc. are listed. Indicate its normal balance and the debit/credit rules for increasing the account. (Choices may be used more than once.) a.Debit b.Credit -Common Stock

"You Decide" Essay A customer has called complaining that he paid for a service call last week and is still waiting for a serviceman to come out and repair his air conditioning unit. You are now curious as to how much work your service team has been paid for but still remains undone. You notice the bookkeeper has left the company's general journal and general ledger open on the desk so that he can do the monthly posting when he returns from lunch. Using those two items, how can you satisfy your curiosity?

Selected accounts at July 31 are provided below: -Refer to HVAC Service. The journal entry to record payment for the office equipment and supplies will include a debit to

Select the organization that most closely achieves the role described. (Choices may be used more than once.) a.Financial Accounting Standards Board (FASB) b.International Accounting Standards Board (IASB) c.Securities and Exchange Commission (SEC) -Has the ultimate authority to set accounting standards, but has allowed the profession to do so.

For each transaction provided, choose the appropriate account from the list that would receive a debit entry as a result of the transaction. (Choices may be used more than once.) a.Cash b.Accounts receivable c.Supplies d.Prepaid insurance e.Land f.Equipment g.Accounts payable h.Unearned revenues i.Notes payable j.Common stock k.Retained earnings l.Service revenue m.Salary expense n.Insurance expense o.Utilities expense p.Dividends -Paying salaries to employees

Payment is made for the telephone bill which was recorded previously. What effect does this transaction have on the accounting equation?

-Refer to H&R Clock Company. Set up T-accounts and post each transaction to the T-accounts.