Question 1

Identify the correct formula below used to calculate the debt ratio.

Accepted Answer

A) Total Equity/Total Liabilities. 
B) Total Liabilities/Total Equity. 
C) Total Liabilities/Total Assets. 
D) Total Assets/Total Liabilities. 
E) Total Equity/Total Assets. 
A) Total Equity/Total Liabilities. 
B) Total Liabilities/Total Equity. 
C) Total Liabilities/Total Assets. 
D) Total Assets/Total Liabilities. 
E) Total Equity/Total Assets.

Question 2

________ and ________ are the starting points for the analyzing and recording process.

Accepted Answer

Business t

Question 3

Dividends always decrease equity.

Accepted Answer

A) True 
 B)False

Question 4

The fourth step in the analyzing and recording process is to transfer (or post)entries from the journal to the ________.

Accepted Answer

The answer of The fourth step in the analyzing and...

Question 5

Unearned revenue is classified as a(an)________ on a business's balance sheet.

Accepted Answer

The answer of Unearned revenue is classified as a(an)________ on...

Question 6

An asset created by prepayment of an insurance premium is:

Accepted Answer

A) Recorded as a debit to Unearned Revenue. 
B) Recorded as a debit to Prepaid Insurance. 
C) Recorded as a credit to Unearned Revenue. 
D) Recorded as a credit to Prepaid Insurance. 
E) Not recorded in the accounting records until the insurance period expires. 
A) Recorded as a debit to Unearned Revenue. 
B) Recorded as a debit to Prepaid Insurance. 
C) Recorded as a credit to Unearned Revenue. 
D) Recorded as a credit to Prepaid Insurance. 
E) Not recorded in the accounting records until the insurance period expires.

Question 7

The general journal is a collection of all accounts and their balances.

Accepted Answer

A) True 
 B)False

Question 8

Victor Cruz contributed $70,000 in cash and land worth $130,000 to open a new business,VC Consulting,in exchange for common stock.Which of the following general journal entries will VC Consulting make to record this transaction?

Accepted Answer

A) Debit Accounts Payable $200,000; Credit Common Stock,$200,000. 
B) Credit Cash and Land,$200,000; Credit Common Stock,$200,000. 
C) Debit Cash $70,000; Debit Land $130,000; Credit Common Stock,$200,000. 
D) Debit Common Stock,$200,000; Credit Cash $70,000,Credit Land,$130,000. 
E) Debit Common Stock,$200,000; Credit Assets,$200,000. 
A) Debit Accounts Payable $200,000; Credit Common Stock,$200,000. 
B) Credit Cash and Land,$200,000; Credit Common Stock,$200,000. 
C) Debit Cash $70,000; Debit Land $130,000; Credit Common Stock,$200,000. 
D) Debit Common Stock,$200,000; Credit Cash $70,000,Credit Land,$130,000. 
E) Debit Common Stock,$200,000; Credit Assets,$200,000.

Question 9

Willow Rentals purchased office supplies on credit.The general journal entry made by Willow Rentals will include a:

Accepted Answer

A) Debit to Accounts Payable. 
B) Debit to Accounts Receivable. 
C) Credit to Cash. 
D) Credit to Accounts Payable. 
E) Credit to Common Stock. 
A) Debit to Accounts Payable. 
B) Debit to Accounts Receivable. 
C) Credit to Cash. 
D) Credit to Accounts Payable. 
E) Credit to Common Stock.

Question 10

Identify the statement below that is true.

Accepted Answer

A) A trial balance can replace the need for financial statements. 
B) The trial balance presents net income for a period of time. 
C) Another name for the trial balance is the chart of accounts. 
D) The trial balance is a list of all accounts from the ledger with their balances at a point in time. 
E) The trial balance is another name for the balance sheet as long as debits balance with credits. 
A) A trial balance can replace the need for financial statements. 
B) The trial balance presents net income for a period of time. 
C) Another name for the trial balance is the chart of accounts. 
D) The trial balance is a list of all accounts from the ledger with their balances at a point in time. 
E) The trial balance is another name for the balance sheet as long as debits balance with credits.

Question 11

Match between columns
                        Premises: Trial balance
Note payable
Account balance
Ledger
Chart of accounts
Balance column account
Journal
Debt ratio
Credit
Debit

Accepted Answer

The Answer of An increase in an asset, dividend, and is...

Question 12

If cash is received from customers in payment for services that have not yet been performed,the business would record the cash receipt as:

Accepted Answer

A) A debit to an unearned revenue account. 
B) A debit to a prepaid expense account. 
C) A credit to an unearned revenue account. 
D) A credit to a prepaid expense account. 
E) A credit to accounts payable. 
A) A debit to an unearned revenue account. 
B) A debit to a prepaid expense account. 
C) A credit to an unearned revenue account. 
D) A credit to a prepaid expense account. 
E) A credit to accounts payable.

Question 13

A ________ gives a complete chronological record of each transaction in one place,and shows debits and credits for each transaction.

Accepted Answer

The answer of A ________ gives a complete chronological record...

Question 14

________ documents identify and describe transactions and events entering the accounting system.

Accepted Answer

The answer of ________ documents identify and describe transactions and...

Question 15

The following accounts appear on either the Income Statement (IS)or Balance Sheet (BS).In the space to the left of each account,write IS or BS to identify the statement on which the account appears.
____ 1.Office Equipment
____ 2.Rent Expense
____ 3.Unearned Revenue
____ 4.Rent Expense
____ 5.Accounts Payable
____ 6.Common Stock
____ 7.Fees Revenue
____ 8.Cash
____ 9.Notes Receivable
____ 10.Wages Payable

Accepted Answer

1.BS; 2.IS; 3.BS; 4.

Question 16

An account balance is:

Accepted Answer

A) The total of the credit side of the account. 
B) The total of the debit side of the account. 
C) The difference between the total debits and total credits for an account including the beginning balance. 
D) Used to identify source documents. 
E) Always a credit. 
A) The total of the credit side of the account. 
B) The total of the debit side of the account. 
C) The difference between the total debits and total credits for an account including the beginning balance. 
D) Used to identify source documents. 
E) Always a credit.

Question 17

When a company provides services for which cash will not be received until some future date,the company should record the amount billed as accounts receivable.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are asset accounts except:

Accepted Answer

A) Accounts Receivable. 
B) Buildings. 
C) Supplies expense. 
D) Equipment. 
E) Prepaid insurance. 
A) Accounts Receivable. 
B) Buildings. 
C) Supplies expense. 
D) Equipment. 
E) Prepaid insurance.

Question 19

At the beginning of January of the current year,Sorrel Co.'s ledger reflected a normal balance of $52,000 for accounts receivable.During January,the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500.Additionally,during January one customer paid Mikey $5,000 for services to be provided in the future.At the end of January,the balance in the accounts receivable account should be:

Accepted Answer

A) $54,700. 
B) $49,700. 
C) $2,300. 
D) $54,300. 
E) $49,300. 
A) $54,700. 
B) $49,700. 
C) $2,300. 
D) $54,300. 
E) $49,300.

Question 20

The debt ratio is used:

Accepted Answer

A) To measure the ratio of equity to expenses. 
B) To assess the risk associated with a company's use of liabilities. 
C) To assess market expectations for future growth. 
D) To determine how efficient the company is using its assets. 
E) To determine the profitability of a company. 
A) To measure the ratio of equity to expenses. 
B) To assess the risk associated with a company's use of liabilities. 
C) To assess market expectations for future growth. 
D) To determine how efficient the company is using its assets. 
E) To determine the profitability of a company.

Exam 2: Accounting for Business Transactions

Identify the correct formula below used to calculate the debt ratio.

________ and ________ are the starting points for the analyzing and recording process.

Dividends always decrease equity.

The fourth step in the analyzing and recording process is to transfer (or post)entries from the journal to the ________.

Unearned revenue is classified as a(an)________ on a business's balance sheet.

An asset created by prepayment of an insurance premium is:

The general journal is a collection of all accounts and their balances.

Victor Cruz contributed $70,000 in cash and land worth $130,000 to open a new business,VC Consulting,in exchange for common stock.Which of the following general journal entries will VC Consulting make to record this transaction?

Willow Rentals purchased office supplies on credit.The general journal entry made by Willow Rentals will include a:

Identify the statement below that is true.

If cash is received from customers in payment for services that have not yet been performed,the business would record the cash receipt as:

A ________ gives a complete chronological record of each transaction in one place,and shows debits and credits for each transaction.

________ documents identify and describe transactions and events entering the accounting system.

An account balance is:

When a company provides services for which cash will not be received until some future date,the company should record the amount billed as accounts receivable.

All of the following are asset accounts except:

The debt ratio is used:

Accounting in Business

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

Filters

and are the starting points for the analyzing and recording process.