Question 1

__________is the process of transferring journal entry information from the journal to the ledger.

Accepted Answer

The answer of __________is the process of transferring journal entry...

Question 2

An income statement reports the revenues earned less the expenses incurred by a business over a period of time.

Accepted Answer

A) True 
 B)False

Question 3

A business's source documents may include all of the following except:

Accepted Answer

A)  Sales tickets. 
B)  Bank statements. 
C)  Ledgers. 
D)  Purchase orders. 
E)  Checks. 
A)  Sales tickets. 
B)  Bank statements. 
C)  Ledgers. 
D)  Purchase orders. 
E)  Checks.

Question 4

At the end of the current year, Leer Company reported total liabilities of $300,000 and total equity of $100,000. The company's debt ratio on the last year-end was:

Accepted Answer

A)  $400,000. 
B)  66.67%. 
C)  33.3%. 
D)  75.0%. 
E)  300%. 
A)  $400,000. 
B)  66.67%. 
C)  33.3%. 
D)  75.0%. 
E)  300%.

Question 5

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

Accepted Answer

A)  A debit to a prepaid expense account. 
B)  A debit to an unearned revenue account. 
C)  No entry is required at the time of collection. 
D)  A credit to a prepaid expense account. 
E)  A credit to an unearned revenue account. 
A)  A debit to a prepaid expense account. 
B)  A debit to an unearned revenue account. 
C)  No entry is required at the time of collection. 
D)  A credit to a prepaid expense account. 
E)  A credit to an unearned revenue account.

Question 6

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 made no investments in the business and withdrew no assets 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 7

Bologna Lodging had the following accounts and balances as of December 31: $\begin{array}{|l|c|c|}
\hline \text { Account } & \text { Debit } & \text { Credit } \
\hline \text { Cash } & \$ 20,000 & \
\hline \text { Accounts Receivable } & 2,000 & \
\hline \text { Salaries Expense } & 500 & \
\hline \text { Accounts Payable } & & \$ 4,000 \
\hline \text { Lodging Revenue } & & 7,000 \
\hline \text { Utilities Expense } & 500 & \
\hline \text { Prepaid Insurance } & 1,400 & \
\hline \text { Supplies } & 1,500 & \
\hline \text { B. Oscar, Capital } & & 14,900 \
\hline \text { Totals } & \$ 25,900 & \$ 25,900 \
\hline
\end{array}$
 Using the information in the table, calculate the total assets reported on Bologna's balance sheet for the period.

Accepted Answer

A)  $25,400. 
B)  $24,900. 
C)  $23,400. 
D)  $22,500. 
E)  $25,900. 
A)  $25,400. 
B)  $24,900. 
C)  $23,400. 
D)  $22,500. 
E)  $25,900.

Question 8

On May 31, the Cash account of Bottle's R US had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?

Accepted Answer

A)  A $4,300 debit balance. 
B)  A $4,300 credit balance. 
C)  A $5,700 credit balance. 
D)  A $5,700 debit balance. 
E)  A $0 balance. 
A)  A $4,300 debit balance. 
B)  A $4,300 credit balance. 
C)  A $5,700 credit balance. 
D)  A $5,700 debit balance. 
E)  A $0 balance.

Question 9

Joel Consulting received $3,000 from a customer for services provided. Joel's general journal entry to record this transaction will be:

Accepted Answer

A)  Debit Cash, credit Accounts Receivable. 
B)  Debit Accounts Payable, credit Services Revenue. 
C)  Debit Services Revenue, credit Accounts Receivable. 
D)  Debit Cash, credit Accounts Payable. 
E)  Debit Cash, credit Services Revenue. 
A)  Debit Cash, credit Accounts Receivable. 
B)  Debit Accounts Payable, credit Services Revenue. 
C)  Debit Services Revenue, credit Accounts Receivable. 
D)  Debit Cash, credit Accounts Payable. 
E)  Debit Cash, credit Services Revenue.

Question 10

Cash withdrawn by the owner of a proprietorship for personal expenses, should be treated as an expense of the business.

Accepted Answer

A) True 
 B)False

Question 11

The financial statement that summarizes the changes in an owner's capital account is called the balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

All of the following are asset accounts except:

Accepted Answer

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

Question 13

The trial balance can serve as a replacement for the balance sheet, since total debits must equal total credits.

Accepted Answer

A) True 
 B)False

Question 14

__________requires that each transaction affect, and be recorded in, at least two accounts. It also means that total amounts debited must equal total amounts credited for each transaction.

Accepted Answer

double-ent

Question 15

Identify the account below that is classified as an asset account:

Accepted Answer

A)  Accounts Payable 
B)  Unearned Revenue 
C)  J. Jackson, Capital 
D)  Service Revenue 
E)  Supplies 
A)  Accounts Payable 
B)  Unearned Revenue 
C)  J. Jackson, Capital 
D)  Service Revenue 
E)  Supplies

Question 16

Crediting an expense account decreases it.

Accepted Answer

A) True 
 B)False

Question 17

Review the transactions below and identify with an "X" those that would be posted as a credit in the ledger (The first one has been done for you):

Accepted Answer

The answer of Review the transactions below and identify with...

Question 18

A ________ is a list of all the accounts used by a company and their identification codes but does not contain the balances.

Accepted Answer

The answer of A ________ is a list of all...

Question 19

In a seller's accounting records, __________ are promises of payment waiting to be received from customers.

Accepted Answer

The answer of In a seller's accounting records, __________ are...

Question 20

If a company purchases equipment paying cash, the journal entry to record this transaction will include a debit to Cash.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing and Recording Transactions

__________is the process of transferring journal entry information from the journal to the ledger.

An income statement reports the revenues earned less the expenses incurred by a business over a period of time.

A business's source documents may include all of the following except:

At the end of the current year, Leer Company reported total liabilities of $300,000 and total equity of $100,000. The company's debt ratio on the last year-end was:

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

On May 31, the Cash account of Bottle's R US had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?

Joel Consulting received $3,000 from a customer for services provided. Joel's general journal entry to record this transaction will be:

Cash withdrawn by the owner of a proprietorship for personal expenses, should be treated as an expense of the business.

The financial statement that summarizes the changes in an owner's capital account is called the balance sheet.

All of the following are asset accounts except:

The trial balance can serve as a replacement for the balance sheet, since total debits must equal total credits.

__________requires that each transaction affect, and be recorded in, at least two accounts. It also means that total amounts debited must equal total amounts credited for each transaction.

Identify the account below that is classified as an asset account:

Crediting an expense account decreases it.

Review the transactions below and identify with an "X" those that would be posted as a credit in the ledger (The first one has been done for you):

A ________ is a list of all the accounts used by a company and their identification codes but does not contain the balances.

In a seller's accounting records, __________ are promises of payment waiting to be received from customers.

If a company purchases equipment paying cash, the journal entry to record this transaction will include a debit to Cash.

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