Question 1

Which of the following transactions results in an increase in revenues?

Accepted Answer

A)  Sale of a service on credit 
B)  Receipt of cash from bank loan 
C)  Sale of land at cost for cash 
D)  Collection of cash on account 
A)  Sale of a service on credit 
B)  Receipt of cash from bank loan 
C)  Sale of land at cost for cash 
D)  Collection of cash on account

Question 2

Which of the following accounts probably would contain a smaller dollar amount on the adjusted trial balance than on the trial balance?

Accepted Answer

A)  Office Supplies 
B)  Accumulated Depreciation-Equipment 
C)  Cash 
D)  Wages Expense 
A)  Office Supplies 
B)  Accumulated Depreciation-Equipment 
C)  Cash 
D)  Wages Expense

Question 3

Which of the following accounts would be found on the credit side of the adjusted trial balance?

Accepted Answer

A)  Service Revenue 
B)  Office Supplies 
C)  Dividends 
D)  Rent Expense 
A)  Service Revenue 
B)  Office Supplies 
C)  Dividends 
D)  Rent Expense

Question 4

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
  If on December 31,2013,supplies on hand were $40,the adjusting entry would contain a

Accepted Answer

A)  credit to Supplies for $40. 
B)  credit to Supplies Expense for $260. 
C)  debit to Supplies Expense for $260. 
D)  debit to Supplies for $40. 
A)  credit to Supplies for $40. 
B)  credit to Supplies Expense for $260. 
C)  debit to Supplies Expense for $260. 
D)  debit to Supplies for $40.

Question 5

Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?

Accepted Answer

A)  Depreciation Expense-Building 
B)  Retained Earnings 
C)  Unearned Revenue 
D)  Income Summary 
A)  Depreciation Expense-Building 
B)  Retained Earnings 
C)  Unearned Revenue 
D)  Income Summary

Question 6

An accrual is the recognition of an expense that has arisen but has not yet been recorded.

Accepted Answer

A) True 
 B)False

Question 7

Real account balances are reduced to zero by closing entries.

Accepted Answer

A) True 
 B)False

Question 8

The manipulation of revenues and expenses to get a certain outcome is called earnings management.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following accounts is a contra account?

Accepted Answer

A)  Accumulated Depreciation-Machinery 
B)  Accounts Payable 
C)  Depreciation Expense-Machinery 
D)  Unearned Fees 
A)  Accumulated Depreciation-Machinery 
B)  Accounts Payable 
C)  Depreciation Expense-Machinery 
D)  Unearned Fees

Question 10

A customer's promise to pay for goods or services

Accepted Answer

A)  decreases the assets of the company.. 
B)  decreases the Cash account of the company. 
C)  creates a liability for the company. 
D)  increases the assets of the company. 
A)  decreases the assets of the company.. 
B)  decreases the Cash account of the company. 
C)  creates a liability for the company. 
D)  increases the assets of the company.

Question 11

Revenue cannot be recognized when delivery of goods has occurred or services have been rendered.

Accepted Answer

A) True 
 B)False

Question 12

The carrying value of equipment is the difference between the original value of the equipment and its accumulated depreciation.

Accepted Answer

A) True 
 B)False

Question 13

An adjusting entry cannot include a debit to a(n)

Accepted Answer

A)  expense and a credit to an asset. 
B)  expense and a credit to a liability. 
C)  asset and a credit to a revenue. 
D)  asset and a credit to a liability. 
A)  expense and a credit to an asset. 
B)  expense and a credit to a liability. 
C)  asset and a credit to a revenue. 
D)  asset and a credit to a liability.

Question 14

Which of the following transactions results in the recognition of an expense?

Accepted Answer

A)  Expiration of the usefulness of equipment during the accounting period 
B)  Payment on an account payable 
C)  Declaration and payment of a dividend 
D)  Payment on the principal portion of a loan 
A)  Expiration of the usefulness of equipment during the accounting period 
B)  Payment on an account payable 
C)  Declaration and payment of a dividend 
D)  Payment on the principal portion of a loan

Question 15

One of the applications of accrual accounting is recognizing revenue at the appropriate time.

Accepted Answer

A) True 
 B)False

Question 16

The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting.

Accepted Answer

A) True 
 B)False

Question 17

The following steps in the accounting cycle are presented out of order below.Arrange the steps in the proper order by placing a number from 1 through 5 in the blanks provided.Also identify each step as either a recurring activity (RA)-one that would be repeated during the fiscal period-or an end-of-period activity (EOP)-one performed at the end of the accounting period.
______a.Record entries in a journal.
______b.Adjust the accounts and prepare an adjusted trial balance.
______c.Close the accounts and prepare a post-closing trial balance.
______d.Analyze business transactions from source documents.
______e.Post entries to the ledger and prepare a trial balance.

Accepted Answer

a. 2 RA
b.

Question 18

Which of the following is not a temporary account?

Accepted Answer

A)  Interest Income 
B)  Utilities Expense 
C)  Sales Revenue 
D)  Notes Payable 
A)  Interest Income 
B)  Utilities Expense 
C)  Sales Revenue 
D)  Notes Payable

Question 19

The manipulation of revenues and expenses to achieve a specific outcome is called

Accepted Answer

A)  earnings management. 
B)  continuity. 
C)  going concern. 
D)  revenue recognition. 
A)  earnings management. 
B)  continuity. 
C)  going concern. 
D)  revenue recognition.

Question 20

Which of the following accounts is not found in closing entries?

Accepted Answer

A)  Dividends 
B)  Income Summary 
C)  Retained Earnings 
D)  Accumulated Depreciation-Equipment 
A)  Dividends 
B)  Income Summary 
C)  Retained Earnings 
D)  Accumulated Depreciation-Equipment

Which of the following transactions results in an increase in revenues?

Which of the following accounts probably would contain a smaller dollar amount on the adjusted trial balance than on the trial balance?

Which of the following accounts would be found on the credit side of the adjusted trial balance?

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows: If on December 31,2013,supplies on hand were $40,the adjusting entry would contain a

Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?

An accrual is the recognition of an expense that has arisen but has not yet been recorded.

Real account balances are reduced to zero by closing entries.

The manipulation of revenues and expenses to get a certain outcome is called earnings management.

Which of the following accounts is a contra account?

A customer's promise to pay for goods or services

Revenue cannot be recognized when delivery of goods has occurred or services have been rendered.

The carrying value of equipment is the difference between the original value of the equipment and its accumulated depreciation.

An adjusting entry cannot include a debit to a(n)

Which of the following transactions results in the recognition of an expense?

One of the applications of accrual accounting is recognizing revenue at the appropriate time.

The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting.

Which of the following is not a temporary account?

The manipulation of revenues and expenses to achieve a specific outcome is called

Which of the following accounts is not found in closing entries?

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters

Exam 3: Measuring Business Income

Which of the following transactions results in an increase in revenues?

Which of the following accounts probably would contain a smaller dollar amount on the adjusted trial balance than on the trial balance?

Which of the following accounts would be found on the credit side of the adjusted trial balance?

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows: If on December 31,2013,supplies on hand were $40,the adjusting entry would contain a

Which of the following accounts might appear in the adjusted trial balance but not in the post-closing trial balance?

An accrual is the recognition of an expense that has arisen but has not yet been recorded.

Real account balances are reduced to zero by closing entries.

The manipulation of revenues and expenses to get a certain outcome is called earnings management.

Which of the following accounts is a contra account?

A customer's promise to pay for goods or services

Revenue cannot be recognized when delivery of goods has occurred or services have been rendered.

The carrying value of equipment is the difference between the original value of the equipment and its accumulated depreciation.

An adjusting entry cannot include a debit to a(n)

Which of the following transactions results in the recognition of an expense?

One of the applications of accrual accounting is recognizing revenue at the appropriate time.

The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting.

Which of the following is not a temporary account?

The manipulation of revenues and expenses to achieve a specific outcome is called

Which of the following accounts is not found in closing entries?

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters