Question 1

A company's list of accounts and the identification numbers assigned to each account is called a:

Accepted Answer

A)  General Journal. 
B)  Source document. 
C)  Trial balance. 
D)  Chart of accounts. 
E)  Journal. 
A)  General Journal. 
B)  Source document. 
C)  Trial balance. 
D)  Chart of accounts. 
E)  Journal.

Question 2

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year:
$\begin{array} { l c c } 
& \text { Assets } & \text { Liabilities } \
\text { Beginning of the year } \$ 114,000 & \$ 68,000 \
\text { End of the year } & 135,000 & 73,000
\end{array}$
- 
If Jerry invested an additional $12,000 in the business and withdrew $5,000 during the year, what was the amount of net income earned by Jerry's Butcher Shop?

Accepted Answer

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

Question 3

J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record the cash payment. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 2,500 & \
\hline \text { Insurance Expense } & & 2,500 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Prepaid Insurance } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 2,500 & \
\hline \text { Prepaid Insurance } & & 2,500 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Insurance Expense } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Insurance Expense } & 2,500 & \
\hline \text { Prepaid Insurance } & & 2,500 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 2,500 & \
\hline \text { Insurance Expense } & & 2,500 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Prepaid Insurance } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 2,500 & \
\hline \text { Prepaid Insurance } & & 2,500 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Insurance Expense } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Insurance Expense } & 2,500 & \
\hline \text { Prepaid Insurance } & & 2,500 \
\hline
\end{array}$$

Question 4

If insurance coverage for the next two years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.

Accepted Answer

A) True 
 B)False

Question 5

Transactions are recorded first in the ledger and then transferred to the journal.

Accepted Answer

A) True 
 B)False

Question 6

Identify the account below that impacts the Equity of a business:

Accepted Answer

A)  Accounts Payable 
B)  Utilities Expense 
C)  Cash 
D)  Accounts Receivable 
E)  Unearned Revenue 
A)  Accounts Payable 
B)  Utilities Expense 
C)  Cash 
D)  Accounts Receivable 
E)  Unearned Revenue

Question 7

A customer's promise to pay on credit is classified as an account payable by the seller.

Accepted Answer

A) True 
 B)False

Question 8

Wiley Hill opened Hill's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:

Wiley invested $25,000 cash in the business.
Wiley contributed $100,000 of equipment to the business.
The company paid $2,000 cash to rent office space for the month of March. The company received $16,000 cash for repair services provided during March. The company paid $6,200 for salaries for the month of March.
The company provided $3,000 of services to customers on account.
 The company paid cash of $500 for utilities for the month of March.
The company received $3,100 cash in advance from a customer for repair services to be provided in April.
Wiley withdrew $5,000 for his personal use from the company.
Based on this information, the balance in Wiley Hill, Capital reported on the Statement of Owner's Equity at the end of March would be:

Accepted Answer

A)  $13,500. 
B)  $8,400. 
C)  $133,400. 
D)  $130,300. 
E)  $125,300. 
A)  $13,500. 
B)  $8,400. 
C)  $133,400. 
D)  $130,300. 
E)  $125,300.

Question 9

The detail of individual revenue and expense accounts is reported on the statement of owner's equity.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

Match between columns
                        Premises:  General journal
 Chart of accounts
 Note receivable
 T-account
 Unearned revenues
 Compound journal entry
 Posting reference column
 Posting
 Account
 Trial Balance

Accepted Answer

The Answer of A simple form used as a helpful is...

Question 12

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

Accepted Answer

A) True 
 B)False

Question 13

If a company provides services to a customer on credit, the company providing the service should credit Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 14

Booth Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.

Accepted Answer

A) True 
 B)False

Question 15

Match between columns
                        Premises:  Source documents
 Debit
 Posting
 Double-entry accounting
 Ledger
 Journal
 Account
 Credit
 T-account
 Trial balance

Accepted Answer

The Answer of Decrease in an asset, owner withdrawal and is...

Question 16

On January 1 of the current year, Jimmy's Sandwich Company reported owner's capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Jimmy withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was:

Accepted Answer

A)  A decrease of $9,500. 
B)  An increase of $73,500. 
C)  An increase of $9,500. 
D)  A decrease of $30,500. 
E)  An increase of $30,500. 
A)  A decrease of $9,500. 
B)  An increase of $73,500. 
C)  An increase of $9,500. 
D)  A decrease of $30,500. 
E)  An increase of $30,500.

Question 17

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Receivable } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Unearned Revenue } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Rental Revenue } & 100 & \
\hline \text { Instruction Revenue } & 150 & \
\hline \text { Cash } & & 250 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Payable } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Receivable } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Unearned Revenue } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Rental Revenue } & 100 & \
\hline \text { Instruction Revenue } & 150 & \
\hline \text { Cash } & & 250 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Payable } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$$ 
E)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$$

Question 18

The first step in the processing of a transaction is to analyze the transaction and source documents.

Accepted Answer

A) True 
 B)False

Question 19

Jarrod Automotive, owned and operated by Jarrod Johnson, began business in September of the current year. Jarrod, a mechanic, had no experience with recording business transactions. As a result, Jarrod entered all of September's transactions directly into the ledger accounts. When he tried to locate a particular entry he found it confusing and time consuming. He has hired you to improve his accounting procedures. The accounts in his General Ledger follow:
Prepare the general journal entries, in chronological order (a) through (e), from the T-account entries shown. Include a brief description of the probable nature of each transaction.

Accepted Answer

None

Question 20

The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space to the left of each account, write the letters, IS or BS to identify the statement on which the account appears.

Accepted Answer

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

A company's list of accounts and the identification numbers assigned to each account is called a:

If insurance coverage for the next two years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.

Transactions are recorded first in the ledger and then transferred to the journal.

Identify the account below that impacts the Equity of a business:

A customer's promise to pay on credit is classified as an account payable by the seller.

The detail of individual revenue and expense accounts is reported on the statement of owner's equity.

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

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

If a company provides services to a customer on credit, the company providing the service should credit Accounts Receivable.

Booth Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.

The first step in the processing of a transaction is to analyze the transaction and source documents.

The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space to the left of each account, write the letters, IS or BS to identify the statement on which the account appears.

Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

Filters

Exam 2: Analyzing and Recording Transactions

A company's list of accounts and the identification numbers assigned to each account is called a:

If insurance coverage for the next two years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.

Transactions are recorded first in the ledger and then transferred to the journal.

Identify the account below that impacts the Equity of a business:

A customer's promise to pay on credit is classified as an account payable by the seller.

The detail of individual revenue and expense accounts is reported on the statement of owner's equity.

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

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

If a company provides services to a customer on credit, the company providing the service should credit Accounts Receivable.

Booth Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.

The first step in the processing of a transaction is to analyze the transaction and source documents.

The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space to the left of each account, write the letters, IS or BS to identify the statement on which the account appears.

Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

Filters