Question 1

Which financial statements are prepared for a period of time?

Accepted Answer

A) Income statement,statement of retained earnings,balance sheet and statement of cash flows. 
B) Balance sheet. 
C) Income statement,statement of retained earnings,and statement of cash flows. 
D) Income statement and balance sheet. 
E) Statement of retained earnings and statement of cash flows. 
A) Income statement,statement of retained earnings,balance sheet and statement of cash flows. 
B) Balance sheet. 
C) Income statement,statement of retained earnings,and statement of cash flows. 
D) Income statement and balance sheet. 
E) Statement of retained earnings and statement of cash flows.

Question 2

Unearned revenues are:

Accepted Answer

A) Revenues that have been earned and received in cash. 
B) Revenues that have been earned but not yet collected in cash. 
C) Liabilities created when a customer pays in advance for products or services before the revenue is earned. 
D) Recorded as an asset in the accounting records. 
E) Increases to retained earnings. 
A) Revenues that have been earned and received in cash. 
B) Revenues that have been earned but not yet collected in cash. 
C) Liabilities created when a customer pays in advance for products or services before the revenue is earned. 
D) Recorded as an asset in the accounting records. 
E) Increases to retained earnings.

Question 3

The third step in the analyzing and recording process is to post the information to _________________________.

Accepted Answer

the genera

Question 4

Common Stock normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 5

Describe source documents and their purpose.

Accepted Answer

Source documents are the basis of inform

Question 6

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Accepted Answer

A) True 
 B)False

Question 7

Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings.This error was not discovered before the journal entry was posted.What is the correcting entry?

Accepted Answer

A) Debit Buildings and credit Equipment for $50,000 each. 
B) Debit Equipment and credit Buildings for $50,000 each. 
C) Debit Buildings and credit Equipment for $100,000 each. 
D) Debit Equipment and credit Buildings for $100,000 each. 
E) Debit Equipment for $100,000 and credit Buildings for $50,000. 
A) Debit Buildings and credit Equipment for $50,000 each. 
B) Debit Equipment and credit Buildings for $50,000 each. 
C) Debit Buildings and credit Equipment for $100,000 each. 
D) Debit Equipment and credit Buildings for $100,000 each. 
E) Debit Equipment for $100,000 and credit Buildings for $50,000.

Question 8

Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business,RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

Accepted Answer

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

Question 9

A debit is:

Accepted Answer

A) An increase in an account. 
B) The right-hand side of a T-account. 
C) A decrease in an account. 
D) The left-hand side of a T-account. 
E) An increase to a liability account. 
A) An increase in an account. 
B) The right-hand side of a T-account. 
C) A decrease in an account. 
D) The left-hand side of a T-account. 
E) An increase to a liability account.

Question 10

The following trial balance was prepared from the general ledger of Hal's Auto Repair.
 
Since the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made: 
1.A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit
to Accounts Payable.
2.An investment of $500 cash by the owner was debited to Common Stock and credited to
Cash.
3.In computing the balance of the Accounts Receivable account,a debit of $600 was omitted
from the computation.
4.One debit of $300 to the Dividends account was posted as a credit.
5.Office equipment purchased for $800 was posted to the Repair Equipment account.
6.One entire entry was not posted to the general ledger.The transaction involved the receipt
of $125 cash at the time repair services were performed.
Prepare a corrected trial balance for the Hal's Auto Repair as of October 31.

Accepted Answer

@#IMG-DLM&_TB6947_00_TB6947_00_TB6947_00
a. Cash:

Question 11

Debit means the right-hand side of any account.

Accepted Answer

A) True 
 B)False

Question 12

What would be the account balance in the Cash account after the following transactions,assuming a zero beginning balance?

Accepted Answer

A) $124,250 
B) $80,150 
C) $78,250 
D) $79,200 
E) $80,450 
A) $124,250 
B) $80,150 
C) $78,250 
D) $79,200 
E) $80,450

Question 13

Which of the following is a true statement regarding debits and credits?

Accepted Answer

A) If a company earned a profit,debits will not equal credits. 
B) For a business,debits are better than credits. 
C) A company's books are not in balance if they have a current period loss. 
D) Assets and expenses are both increased with a debit. 
E) Liabilities and equity are both increased with a debit. 
A) If a company earned a profit,debits will not equal credits. 
B) For a business,debits are better than credits. 
C) A company's books are not in balance if they have a current period loss. 
D) Assets and expenses are both increased with a debit. 
E) Liabilities and equity are both increased with a debit.

Question 14

The debt ratio reflects the risk of a company to both its owners and creditors.

Accepted Answer

A) True 
 B)False

Question 15

The first step in the analyzing and recording process is to analyze each transaction and event from source documents.

Accepted Answer

A) True 
 B)False

Question 16

Identify each of the following accounts as a revenue (R),expense (E),asset (A),liability, (L) or equity (OE) by placing initials (R,E,A,L,or OE) in the blanks.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 17

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year:
   If the owners made no investments and dividends of $5,000 were paid during the year,what was the amount of net income earned by Josephine's Bakery during the current year?

Accepted Answer

Beginning owner's equity = $114,000 - $6

Question 18

The balance sheet provides a link between beginning and ending income statements.

Accepted Answer

A) True 
 B)False

Question 19

Dolly Barton began Barton Office Services in October and during the month completed the following transactions:
a.Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock.
b.Paid $500 cash for an insurance premium covering the next 12 months.
c.Completed a word processing assignment for a customer and collected $1,000 cash.
d.Paid $200 cash for office supplies.
e.Paid $2,000 for October's rent.
Prepare journal entries to record the above transactions.Explanations are unnecessary.

Accepted Answer

a. @#IMG-DLM&_TB6947_00_TB6947_00_TB6947

Question 20

A $130 credit to Office Equipment was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Accepted Answer

A) Office Equipment,understated $130; Fees Earned,overstated $130. 
B) Office Equipment,understated $260; Fees Earned,overstated $130. 
C) Office Equipment,overstated $130; Fees Earned,overstated $130. 
D) Office Equipment,overstated $130; Fees Earned,understated $130. 
E) Office Equipment,overstated $260; Fees Earned,understated $130. 
A) Office Equipment,understated $130; Fees Earned,overstated $130. 
B) Office Equipment,understated $260; Fees Earned,overstated $130. 
C) Office Equipment,overstated $130; Fees Earned,overstated $130. 
D) Office Equipment,overstated $130; Fees Earned,understated $130. 
E) Office Equipment,overstated $260; Fees Earned,understated $130.

Which financial statements are prepared for a period of time?

Unearned revenues are:

The third step in the analyzing and recording process is to post the information to _________________________.

Common Stock normally has a debit balance.

Describe source documents and their purpose.

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings.This error was not discovered before the journal entry was posted.What is the correcting entry?

Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business,RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

A debit is:

Debit means the right-hand side of any account.

What would be the account balance in the Cash account after the following transactions,assuming a zero beginning balance?

Which of the following is a true statement regarding debits and credits?

The debt ratio reflects the risk of a company to both its owners and creditors.

The first step in the analyzing and recording process is to analyze each transaction and event from source documents.

Identify each of the following accounts as a revenue (R),expense (E),asset (A),liability, (L) or equity (OE) by placing initials (R,E,A,L,or OE) in the blanks.

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year: If the owners made no investments and dividends of $5,000 were paid during the year,what was the amount of net income earned by Josephine's Bakery during the current year?

The balance sheet provides a link between beginning and ending income statements.

A $130 credit to Office Equipment was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

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 financial statements are prepared for a period of time?

Unearned revenues are:

The third step in the analyzing and recording process is to post the information to _________________________.

Common Stock normally has a debit balance.

Describe source documents and their purpose.

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings.This error was not discovered before the journal entry was posted.What is the correcting entry?

Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business,RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

A debit is:

Debit means the right-hand side of any account.

What would be the account balance in the Cash account after the following transactions,assuming a zero beginning balance?

Which of the following is a true statement regarding debits and credits?

The debt ratio reflects the risk of a company to both its owners and creditors.

The first step in the analyzing and recording process is to analyze each transaction and event from source documents.

Identify each of the following accounts as a revenue (R),expense (E),asset (A),liability, (L) or equity (OE) by placing initials (R,E,A,L,or OE) in the blanks.

Josephine's Bakery had the following assets and liabilities at the beginning and end of the current year: If the owners made no investments and dividends of $5,000 were paid during the year,what was the amount of net income earned by Josephine's Bakery during the current year?

The balance sheet provides a link between beginning and ending income statements.

A $130 credit to Office Equipment was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

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