Question 1

If Capital has been credited, it is likely that:

Accepted Answer

A) services were provided to a cash customer. 
B) services were provided to a charge customer. 
C) the owner made an investment. 
D) All of these are possible 
A) services were provided to a cash customer. 
B) services were provided to a charge customer. 
C) the owner made an investment. 
D) All of these are possible

Question 2

Record the following selected transactions for January in a two-column journal, identifying each entry by letter:
(a)Earned $7,000 fees; customer will pay later.
(b)Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit
(c)Paid $3,000 for rent for January.
(d)Purchased $2,500 of supplies on account.
(e)A. Allen $1,000 investment in the company.
(f)Received $7,000 in cash for fees earned previously.
(g)Paid $1,200 to creditors on account.
(h)Paid wages of $6,250.
(i)Received $7,150 from customers on account.
(j)A. Allen withdrawal of $1,750.

Accepted Answer

The answer of Record the following selected transactions for January...

Question 3

If Fees Earned has been credited, it is most likely that:

Accepted Answer

A) services were provided. 
B) the owner made an investment. 
C) a correcting entry for the overstatement of revenue was recorded. 
D) All of these are possible. 
A) services were provided. 
B) the owner made an investment. 
C) a correcting entry for the overstatement of revenue was recorded. 
D) All of these are possible.

Question 4

Revenue is traditionally recognized in the accounting records when:

Accepted Answer

A) cash is received. 
B) services are rendered. 
C) it is incurred. 
D) None of the answers are correct. 
A) cash is received. 
B) services are rendered. 
C) it is incurred. 
D) None of the answers are correct.

Question 5

Renzi's Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is:

Accepted Answer

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

Question 6

Describe the difference in information contained in the general journal vs. the general ledger.

Accepted Answer

The general journal provides a listing o

Question 7

A credit to an asset account was posted to a liability account. This would cause:

Accepted Answer

A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be overstated. 
D) revenue to be overstated. 
A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be overstated. 
D) revenue to be overstated.

Question 8

A debit to the Capital account was posted to a revenue account. This would cause:

Accepted Answer

A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be understated. 
D) revenue to be understated. 
A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be understated. 
D) revenue to be understated.

Question 9

The process of transferring the data from the journal to the ledger accounts is called posting.

Accepted Answer

A) True 
 B)False

Question 10

A debit to the Capital account was posted to an expense account. This would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be understated. 
C) capital to be overstated. 
D) expense to be understated. 
A) assets to be overstated. 
B) liabilities to be understated. 
C) capital to be overstated. 
D) expense to be understated.

Question 11

The proper sequence used in recording a business transaction is:

Accepted Answer

A) analyze, post, journalize, record the account balance, and complete the reference column in the journal. 
B) analyze, journalize, post, record the account balance, and complete the reference column in the journal. 
C) analyze, journalize, post, complete the reference column in the journal, and record the account balance. 
D) journalize, analyze, post, record the account balance, and complete the reference column in the journal. 
A) analyze, post, journalize, record the account balance, and complete the reference column in the journal. 
B) analyze, journalize, post, record the account balance, and complete the reference column in the journal. 
C) analyze, journalize, post, complete the reference column in the journal, and record the account balance. 
D) journalize, analyze, post, record the account balance, and complete the reference column in the journal.

Question 12

If you debit Prepaid Insurance, you most likely will:

Accepted Answer

A) credit Fees Earned. 
B) debit Cash. 
C) credit Insurance Expense. 
D) credit Cash. 
A) credit Fees Earned. 
B) debit Cash. 
C) credit Insurance Expense. 
D) credit Cash.

Question 13

Transactions are listed in chronological order in the journal.

Accepted Answer

A) True 
 B)False

Question 14

A credit to a liability account was posted to an owner's equity account. This would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be understated. 
C) owner's equity to be understated. 
D) net income to be overstated. 
A) assets to be overstated. 
B) liabilities to be understated. 
C) owner's equity to be understated. 
D) net income to be overstated.

Question 15

The journal entry to record an exchange of assets would include:

Accepted Answer

A) a debit to Cash and a credit to Fees Earned. 
B) a debit to Supplies and a credit to Accounts Payable. 
C) a debit to Cash and a credit to Accounts Receivable. 
D) a debit to Fees Earned and a credit to Accounts Receivable. 
A) a debit to Cash and a credit to Fees Earned. 
B) a debit to Supplies and a credit to Accounts Payable. 
C) a debit to Cash and a credit to Accounts Receivable. 
D) a debit to Fees Earned and a credit to Accounts Receivable.

Question 16

The first step of the accounting cycle is:

Accepted Answer

A) recording journal entries. 
B) posting to the ledger. 
C) preparing a trial balance. 
D) analyzing business transactions. 
A) recording journal entries. 
B) posting to the ledger. 
C) preparing a trial balance. 
D) analyzing business transactions.

Question 17

If Cash has been debited, it is likely that:

Accepted Answer

A) the owner made an investment. 
B) a charge customer made a payment. 
C) the business borrowed cash from the bank. 
D) All of these are possible. 
A) the owner made an investment. 
B) a charge customer made a payment. 
C) the business borrowed cash from the bank. 
D) All of these are possible.

Question 18

Conner Sales' total assets and total liabilities increased $400. The transaction could have been:

Accepted Answer

A) purchase of supplies for cash, $400. 
B) purchase of supplies for $600 with a down payment of $200 and the remainder on account. 
C) paid the rent for the month, $700. 
D) None of these answers are correct. 
A) purchase of supplies for cash, $400. 
B) purchase of supplies for $600 with a down payment of $200 and the remainder on account. 
C) paid the rent for the month, $700. 
D) None of these answers are correct.

Question 19

BNL completed a performance and collected revenue of $8,000 not previously billed or recorded. The journal entry to record the collection would be:

Accepted Answer

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

Question 20

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee. When the employee returns the amount of the overpayment, Plum Hollow should make which of the following entries?

Accepted Answer

A) Cash, debit; Wages Expense, credit 
B) Wages Payable, debit; Wages Expense, credit 
C) Wages Expense, debit; Cash, credit 
D) Wages Expense, debit; Wages Payable, credit 
A) Cash, debit; Wages Expense, credit 
B) Wages Payable, debit; Wages Expense, credit 
C) Wages Expense, debit; Cash, credit 
D) Wages Expense, debit; Wages Payable, credit

Exam 3: Beginning the Accounting Cycle

If Capital has been credited, it is likely that:

If Fees Earned has been credited, it is most likely that:

Revenue is traditionally recognized in the accounting records when:

Renzi's Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is:

Describe the difference in information contained in the general journal vs. the general ledger.

A credit to an asset account was posted to a liability account. This would cause:

A debit to the Capital account was posted to a revenue account. This would cause:

The process of transferring the data from the journal to the ledger accounts is called posting.

A debit to the Capital account was posted to an expense account. This would cause:

The proper sequence used in recording a business transaction is:

If you debit Prepaid Insurance, you most likely will:

Transactions are listed in chronological order in the journal.

A credit to a liability account was posted to an owner's equity account. This would cause:

The journal entry to record an exchange of assets would include:

The first step of the accounting cycle is:

If Cash has been debited, it is likely that:

Conner Sales' total assets and total liabilities increased $400. The transaction could have been:

BNL completed a performance and collected revenue of $8,000 not previously billed or recorded. The journal entry to record the collection would be:

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee. When the employee returns the amount of the overpayment, Plum Hollow should make which of the following entries?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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