Question 1

Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?

Accepted Answer

A) Debit to Cash,debit to Service Revenue. 
B) Debit to Cash,credit to Service Revenue. 
C) Debit to Accounts Receivable,credit to Cash. 
D) Debit to Service Revenue,credit to Accounts Receivable. 
E) Debit to Accounts Receivable,credit to Service Revenue. 
A) Debit to Cash,debit to Service Revenue. 
B) Debit to Cash,credit to Service Revenue. 
C) Debit to Accounts Receivable,credit to Cash. 
D) Debit to Service Revenue,credit to Accounts Receivable. 
E) Debit to Accounts Receivable,credit to Service Revenue.

Question 2

The right side of a T-account is a(n):

Accepted Answer

A) Debit 
B) Increase 
C) Credit 
D) Decrease 
E) Account balance 
A) Debit 
B) Increase 
C) Credit 
D) Decrease 
E) Account balance

Question 3

The three general categories of accounts in a general ledger are __________________,_________________ and __________________________.

Accepted Answer

assets,lia

Question 4

The Fireside Country Inn is a very popular destination for tourists.The Inn requires guests to make reservations at least two months in advance of their stay.A 20 percent down payment is required at the time the reservation is made.When should this inn recognize room rental revenue?

Accepted Answer

A) On the date the reservation is received. 
B) On the date the money for the reservation is received. 
C) On the date the guests stay in the inn. 
D) On the date the guests pay the remaining 80 percent due. 
E) Once all cash has been received. 
A) On the date the reservation is received. 
B) On the date the money for the reservation is received. 
C) On the date the guests stay in the inn. 
D) On the date the guests pay the remaining 80 percent due. 
E) Once all cash has been received.

Question 5

A ledger is:

Accepted Answer

A) A record containing all accounts (with amounts) for a business. 
B) A journal in which transactions are first recorded. 
C) A collection of documents that describe transactions and events during the accounting process. 
D) A list of all accounts with their debit balances at a point in time. 
E) A list of all accounts a company uses and includes an identification number assigned to each account. 
A) A record containing all accounts (with amounts) for a business. 
B) A journal in which transactions are first recorded. 
C) A collection of documents that describe transactions and events during the accounting process. 
D) A list of all accounts with their debit balances at a point in time. 
E) A list of all accounts a company uses and includes an identification number assigned to each account.

Question 6

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

Accepted Answer

A) True 
 B)False

Question 7

Another name for the balance sheet is the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 8

Increases in liability accounts are recorded as debits.

Accepted Answer

A) True 
 B)False

Question 9

Rocky Industries received its telephone bill in the amount of $300 and immediately paid it.Rocky's journal entry to record this transaction will include a

Accepted Answer

A) Debit to Telephone Expense for $300. 
B) Credit to Accounts Payable for $300. 
C) Debit to Cash for $300. 
D) Credit to Telephone Expense for $300. 
E) Debit to Accounts Payable for $300. 
A) Debit to Telephone Expense for $300. 
B) Credit to Accounts Payable for $300. 
C) Debit to Cash for $300. 
D) Credit to Telephone Expense for $300. 
E) Debit to Accounts Payable for $300.

Question 10

Which of the following list of events properly reflects the early steps taken in the accounting process?

Accepted Answer

A) Record relevant transactions,post journal information to ledger accounts,analyze each transaction,and prepare and analyze the trial balance. 
B) Post journal information to ledger accounts,analyze each transaction,post journal information to ledger accounts,and prepare and analyze the trial balance. 
C) Prepare and analyze the trial balance,analyze each transaction,post journal information to ledger accounts,record relevant transactions. 
D) Analyze each transaction,post journal information to ledger accounts,record relevant transactions,and prepare and analyze the trial balance. 
E) Analyze each transaction,record relevant transactions,post journal information to ledger accounts,and prepare and analyze the trial balance. 
A) Record relevant transactions,post journal information to ledger accounts,analyze each transaction,and prepare and analyze the trial balance. 
B) Post journal information to ledger accounts,analyze each transaction,post journal information to ledger accounts,and prepare and analyze the trial balance. 
C) Prepare and analyze the trial balance,analyze each transaction,post journal information to ledger accounts,record relevant transactions. 
D) Analyze each transaction,post journal information to ledger accounts,record relevant transactions,and prepare and analyze the trial balance. 
E) Analyze each transaction,record relevant transactions,post journal information to ledger accounts,and prepare and analyze the trial balance.

Question 11

King Company pays an assistant $900 who worked during the month.How would King record this payment?

Accepted Answer

A) Debit Salaries Expense for $900 and credit Accounts Payable for $900. 
B) Debit Salaries Expense for $900 and credit Cash for $900. 
C) Debit Accounts Payable for $900 and credit Salaries Expense for $900. 
D) Debit Cash for $900 and credit Salaries Expense for $900. 
E) Debit Salaries Expense for $900 and credit Common Stock for $900. 
A) Debit Salaries Expense for $900 and credit Accounts Payable for $900. 
B) Debit Salaries Expense for $900 and credit Cash for $900. 
C) Debit Accounts Payable for $900 and credit Salaries Expense for $900. 
D) Debit Cash for $900 and credit Salaries Expense for $900. 
E) Debit Salaries Expense for $900 and credit Common Stock for $900.

Question 12

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.
   
-Calculate the debt ratio.

Accepted Answer

$13,400/$1

Question 13

The dividends account normally has a credit balance since it is an equity account.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following accounts is a balance sheet account?

Accepted Answer

A) Wages Payable 
B) Operating Activities 
C) Revenues 
D) Dividends 
E) Expenses 
A) Wages Payable 
B) Operating Activities 
C) Revenues 
D) Dividends 
E) Expenses

Question 15

The journal is known as the book of final entry because financial statements are prepared from it.

Accepted Answer

A) True 
 B)False

Question 16

A company sends a $1,500 bill to a customer for delivery services rendered.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 17

A debit is used to record a(n):

Accepted Answer

A) Decrease in an asset account. 
B) Decrease in an expense account. 
C) Increase in a revenue account. 
D) Increase in the balance of common stock. 
E) Decrease in the balance of retained earnings. 
A) Decrease in an asset account. 
B) Decrease in an expense account. 
C) Increase in a revenue account. 
D) Increase in the balance of common stock. 
E) Decrease in the balance of retained earnings.

Question 18

On February 5,Textron Stores purchased a van that had a cost of $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 19

On September 30,Forester Inc.receives its electric bill for the month of September in the amount of $300.The accountant sets the bill aside since it is not due until October 25.How would Forester record this transaction?

Accepted Answer

A) Debit Utilities Expense for $300 and credit Cash for $300. 
B) Debit Utilities Expense for $300 and credit Accounts Payable for $300. 
C) Debit Accounts Payable for $300 and Debit Utilities Expense for $300. 
D) Debit Accounts Payable for $300 and credit Cash for $300. 
E) Debit Cash for $300 and credit Utility Expense for $300. 
A) Debit Utilities Expense for $300 and credit Cash for $300. 
B) Debit Utilities Expense for $300 and credit Accounts Payable for $300. 
C) Debit Accounts Payable for $300 and Debit Utilities Expense for $300. 
D) Debit Accounts Payable for $300 and credit Cash for $300. 
E) Debit Cash for $300 and credit Utility Expense for $300.

Question 20

Match between columns
                        Premises: A column in journals where individual account numbers are entered when entries are posted to ledger accounts.
A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense item.
The most flexible type of journal, it can be used to record any kind of transaction.
A journal entry that affects at least three accounts.
A list of all accounts used by a company and the identification number assigned to each account.
A simple form used as a helpful tool in understanding the effect of transactions and events on specific accounts.
The process of transferring journal entry information to the ledger.
A written promise from a customer to pay a definite sum of money on a specified future date.
A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.
Liabilities created when customers pay in advance for products or services; satisfied by delivering the products or services in the future.

Accepted Answer

The Answer of Unearned revenues and Posting and Account and is...

Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?

The right side of a T-account is a(n):

The three general categories of accounts in a general ledger are __________,_ and __________________.

The Fireside Country Inn is a very popular destination for tourists.The Inn requires guests to make reservations at least two months in advance of their stay.A 20 percent down payment is required at the time the reservation is made.When should this inn recognize room rental revenue?

A ledger is:

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

Another name for the balance sheet is the statement of financial position.

Increases in liability accounts are recorded as debits.

Rocky Industries received its telephone bill in the amount of $300 and immediately paid it.Rocky's journal entry to record this transaction will include a

Which of the following list of events properly reflects the early steps taken in the accounting process?

King Company pays an assistant $900 who worked during the month.How would King record this payment?

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance. -Calculate the debt ratio.

The dividends account normally has a credit balance since it is an equity account.

Which of the following accounts is a balance sheet account?

The journal is known as the book of final entry because financial statements are prepared from it.

A company sends a $1,500 bill to a customer for delivery services rendered.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

A debit is used to record a(n):

On February 5,Textron Stores purchased a van that had a cost of $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

On September 30,Forester Inc.receives its electric bill for the month of September in the amount of $300.The accountant sets the bill aside since it is not due until October 25.How would Forester record this transaction?

Introducing Financial Accounting

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 2: Accounting System and Financial Statements

Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?

The right side of a T-account is a(n):

The three general categories of accounts in a general ledger are __________________,_________________ and __________________________.

The Fireside Country Inn is a very popular destination for tourists.The Inn requires guests to make reservations at least two months in advance of their stay.A 20 percent down payment is required at the time the reservation is made.When should this inn recognize room rental revenue?

A ledger is:

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

Another name for the balance sheet is the statement of financial position.

Increases in liability accounts are recorded as debits.

Rocky Industries received its telephone bill in the amount of $300 and immediately paid it.Rocky's journal entry to record this transaction will include a

Which of the following list of events properly reflects the early steps taken in the accounting process?

King Company pays an assistant $900 who worked during the month.How would King record this payment?

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance. -Calculate the debt ratio.

The dividends account normally has a credit balance since it is an equity account.

Which of the following accounts is a balance sheet account?

The journal is known as the book of final entry because financial statements are prepared from it.

A company sends a $1,500 bill to a customer for delivery services rendered.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

A debit is used to record a(n):

On February 5,Textron Stores purchased a van that had a cost of $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

On September 30,Forester Inc.receives its electric bill for the month of September in the amount of $300.The accountant sets the bill aside since it is not due until October 25.How would Forester record this transaction?

Introducing Financial Accounting

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

The three general categories of accounts in a general ledger are __________,_ and __________________.