Question 1

Which of the following is increased with a debit?

Accepted Answer

A) Insurance expense 
B) Service revenue 
C) Accounts payable 
D) Common stock 
A) Insurance expense 
B) Service revenue 
C) Accounts payable 
D) Common stock A

Question 2

Indicate whether each of the following statements concerning the debit-credit feature of the accounting model is true or false.
_____ a)Upon payment of an account payable,the liability account should be credited.
_____ b)Payment of a cash expense requires a debit to cash and a credit to the expense.
_____ c)On a T-account debits are entered on the left and credits are entered on the right.
_____ d)A credit entry decreases an asset account.
_____ e)Increases in revenues are recorded as debits.

Accepted Answer

a)False b)False c)True d)True e)False

Question 3

The left side of a T-account is the debit side.

Accepted Answer

A) True 
 B)False  True

Question 4

Which is one effect of the following journal entry?

Accepted Answer

A) Decreases liabilities 
B) Increases equity 
C) Increases liabilities 
D) Decreases assets 
A) Decreases liabilities 
B) Increases equity 
C) Increases liabilities 
D) Decreases assets

Question 5

Below are listed several transactions that a business may enter into.
1.Provide services to customers on account
2.Purchase land by paying cash
3.Purchase a fire insurance policy that will provide coverage for a two-year period
4.Acquire cash by issuing common stock
5.Recognize expense for amount of office supplies that had been used during the period
6.Receive payment from a customer for services that will be provided over the next six months
Required:
a)In the table below,indicate the accounts that would be debited and credited for each of the preceding transactions.
b)Show how each transaction affects the financial statements by placing a + for increase,- for decrease,and NA for not affected under each component in the horizontal financial statements model shown below.In the Cash Flow column,use the letters OA for operating activities,IA for investing activities,and FA for financing activities.Insert NA if cash flow is not affected.

Accepted Answer

The answer of Below are listed several transactions that a...

Question 6

Which of the following accounts normally has a debit balance?

Accepted Answer

A) Prepaid insurance 
B) Unearned service revenue 
C) Accounts payable 
D) Common Stock 
A) Prepaid insurance 
B) Unearned service revenue 
C) Accounts payable 
D) Common Stock

Question 7

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.
  
-An adjusting entry recorded as a debit to Unearned Service Revenue and a credit to Service Revenue.

Accepted Answer

(N)(D)(I)(

Question 8

The employees of Able Company have worked the last two weeks of 2016,but the employees' wages have not been paid or recorded as of December 31,2016.The adjusting entry that Able should make for these unpaid wages on December 31,2016 is:

Accepted Answer

A) debit to Wages Expense and credit to Cash. 
B) debit to Wages Expense and credit to Wages Payable. 
C) debit to Wages Payable and credit to Wages Expense. 
D) no entry is required until the employee is paid next period. 
A) debit to Wages Expense and credit to Cash. 
B) debit to Wages Expense and credit to Wages Payable. 
C) debit to Wages Payable and credit to Wages Expense. 
D) no entry is required until the employee is paid next period.

Question 9

Flannigan Company prepared a trial balance at December 31,2016.A trial balance that balances

Accepted Answer

A) proves that all transactions have been properly recorded. 
B) proves that there are no missing transactions. 
C) can only be achieved after adjusting entries have been recorded. 
D) proves the equality of debits and credits. 
A) proves that all transactions have been properly recorded. 
B) proves that there are no missing transactions. 
C) can only be achieved after adjusting entries have been recorded. 
D) proves the equality of debits and credits.

Question 10

Use the following information to answer questions 
Wichita,Inc.had the following amounts on its 12/31/16 financial statements.
  
-The return on equity ratio for Wichita is:

Accepted Answer

A) 5%. 
B) 10%. 
C) 20%. 
D) 50%. 
A) 5%. 
B) 10%. 
C) 20%. 
D) 50%.

Question 11

The year for which companies prepare their financial statements is their fiscal year.

Accepted Answer

A) True 
 B)False

Question 12

Use the following information to answer questions 
At the end of 2016 the following information is available for Grumpy,Happy,and Doc Companies.
  
-Which company has the highest return on assets?

Accepted Answer

A) Grumpy 
B) Happy 
C) Doc 
D) They all have equal return on assets. 
A) Grumpy 
B) Happy 
C) Doc 
D) They all have equal return on assets.

Question 13

Source documents provide information that serves as the basis for entries into the accounting system.Examples of source documents include invoices and deposit tickets.

Accepted Answer

A) True 
 B)False

Question 14

A business's chart of accounts is prepared to verify the equality of debits and credits.

Accepted Answer

A) True 
 B)False

Question 15

The financial statement ratio that may be of greatest interest to a company's stockholders is the amount of its return on assets.

Accepted Answer

A) True 
 B)False

Question 16

The account balances alphabetically listed below are for Shenandoah Company as of December 31,2016.These balances include the effect of year-end adjusting entries.
Required:
a)Prepare an adjusted trial balance for Shenandoah Company.
b)Prepare journal entries for Shenandoah's closing entries for the year.
c)Prepare an income statement for Shenandoah Company for 2016.
d)What was the balance in Retained Earnings after the closing entries had been made and posted?

Accepted Answer

a)
 @#IMG-DLM& b)Closing entri

Question 17

The Youngstown Company recorded the following adjustment in general journal form:
Which of the following choices accurately reflects how this event would affect the company's financial statements?

Accepted Answer

The answer of The Youngstown Company recorded the following adjustment...

Question 18

Use the following information to answer questions 
  
-Select the true statement (note: an answer may be true even if it does not identify all accounts that have debit balances on that particular financial statement).

Accepted Answer

A) Account numbers 1,3,and 5 normally have debit balances. 
B) Account numbers 2,4,and 5 normally have debit balances. 
C) Account numbers 2,5,and 8 normally have debit balances. 
D) Account numbers 4,5,and 6 normally have debit balances. 
A) Account numbers 1,3,and 5 normally have debit balances. 
B) Account numbers 2,4,and 5 normally have debit balances. 
C) Account numbers 2,5,and 8 normally have debit balances. 
D) Account numbers 4,5,and 6 normally have debit balances.

Question 19

Journals are sometimes called books of original entry because transactions are recorded in journals before amounts are entered into the ledger.

Accepted Answer

A) True 
 B)False

Question 20

Indicate the effect of debits or credits on the balance of the following accounts.

Accepted Answer

The answer of Indicate the effect of debits or credits...

Which of the following is increased with a debit?

The left side of a T-account is the debit side.

Which is one effect of the following journal entry?

Which of the following accounts normally has a debit balance?

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts. -An adjusting entry recorded as a debit to Unearned Service Revenue and a credit to Service Revenue.

The employees of Able Company have worked the last two weeks of 2016,but the employees' wages have not been paid or recorded as of December 31,2016.The adjusting entry that Able should make for these unpaid wages on December 31,2016 is:

Flannigan Company prepared a trial balance at December 31,2016.A trial balance that balances

Use the following information to answer questions Wichita,Inc.had the following amounts on its 12/31/16 financial statements. -The return on equity ratio for Wichita is:

The year for which companies prepare their financial statements is their fiscal year.

Use the following information to answer questions At the end of 2016 the following information is available for Grumpy,Happy,and Doc Companies. -Which company has the highest return on assets?

Source documents provide information that serves as the basis for entries into the accounting system.Examples of source documents include invoices and deposit tickets.

A business's chart of accounts is prepared to verify the equality of debits and credits.

The financial statement ratio that may be of greatest interest to a company's stockholders is the amount of its return on assets.

The Youngstown Company recorded the following adjustment in general journal form: Which of the following choices accurately reflects how this event would affect the company's financial statements?

Use the following information to answer questions -Select the true statement (note: an answer may be true even if it does not identify all accounts that have debit balances on that particular financial statement).

Journals are sometimes called books of original entry because transactions are recorded in journals before amounts are entered into the ledger.

Indicate the effect of debits or credits on the balance of the following accounts.

An Introduction to Accounting

Understanding the Accounting Cycle

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships,partnerships,and Corporations

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: The Double-Entry Accounting System

Which of the following is increased with a debit?

The left side of a T-account is the debit side.

Which is one effect of the following journal entry?

Which of the following accounts normally has a debit balance?

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts. -An adjusting entry recorded as a debit to Unearned Service Revenue and a credit to Service Revenue.

The employees of Able Company have worked the last two weeks of 2016,but the employees' wages have not been paid or recorded as of December 31,2016.The adjusting entry that Able should make for these unpaid wages on December 31,2016 is:

Flannigan Company prepared a trial balance at December 31,2016.A trial balance that balances

Use the following information to answer questions Wichita,Inc.had the following amounts on its 12/31/16 financial statements. -The return on equity ratio for Wichita is:

The year for which companies prepare their financial statements is their fiscal year.

Use the following information to answer questions At the end of 2016 the following information is available for Grumpy,Happy,and Doc Companies. -Which company has the highest return on assets?

Source documents provide information that serves as the basis for entries into the accounting system.Examples of source documents include invoices and deposit tickets.

A business's chart of accounts is prepared to verify the equality of debits and credits.

The financial statement ratio that may be of greatest interest to a company's stockholders is the amount of its return on assets.

The Youngstown Company recorded the following adjustment in general journal form: Which of the following choices accurately reflects how this event would affect the company's financial statements?

Use the following information to answer questions -Select the true statement (note: an answer may be true even if it does not identify all accounts that have debit balances on that particular financial statement).

Journals are sometimes called books of original entry because transactions are recorded in journals before amounts are entered into the ledger.

Indicate the effect of debits or credits on the balance of the following accounts.

An Introduction to Accounting

Understanding the Accounting Cycle

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships,partnerships,and Corporations

Statement of Cash Flows

Financial Statement Analysis

Filters