Question 1

Liabilities and stockholders' equity are ____________________ by debits.

Accepted Answer

The answer of Liabilities and stockholders' equity are ____________________ by...

Question 2

Copper Corp.
Use the selected accounts for Copper Corp.presented below to answer the following question(s).
   ​
 $\text { DEPOSITS RECEIVED IN ADVANCE }$ ​
  
-Read the information about Copper Corp..  
Which of the following describes the transaction that occurred on August 7?

Accepted Answer

A) Sold to a customer on credit 
B) Cash sales to daily customers 
C) Collected an advance deposit in cash 
D) Received cash payments of accounts receivable 
A) Sold to a customer on credit 
B) Cash sales to daily customers 
C) Collected an advance deposit in cash 
D) Received cash payments of accounts receivable

Question 3

A cancelled check would be a source document for which of the following?

Accepted Answer

A) Recording a purchase of inventory on credit 
B) Recording cash received on a customer account 
C) Recording accrued payroll 
D) Recording a cash payment to a creditor 
A) Recording a purchase of inventory on credit 
B) Recording cash received on a customer account 
C) Recording accrued payroll 
D) Recording a cash payment to a creditor

Question 4

Copper Corp.
Use the selected accounts for Copper Corp.presented below to answer the following question(s).
   ​
 $\text { DEPOSITS RECEIVED IN ADVANCE }$ ​
  
-Read the information for Copper Corp..  
On which date did the company make a credit sale to a customer?

Accepted Answer

A) August 2 
B) August 3 
C) August 5 
D) August 7 
A) August 2 
B) August 3 
C) August 5 
D) August 7

Question 5

Which of the following transactions affects the liabilities for Gravette,Inc.?

Accepted Answer

A) Supplies are purchased for cash by Gravette. 
B) Gravette places an order for merchandise with a supplier;the merchandise will be shipped to Gravette in 60 days. 
C) The owners of Gravette invest $100,000 in the company. 
D) Payment is made on a bank loan which Gravette had obtained six months ago. 
A) Supplies are purchased for cash by Gravette. 
B) Gravette places an order for merchandise with a supplier;the merchandise will be shipped to Gravette in 60 days. 
C) The owners of Gravette invest $100,000 in the company. 
D) Payment is made on a bank loan which Gravette had obtained six months ago.

Question 6

Provide at least three source documents and the related event for which each would provide the evidence to record.

Accepted Answer

Student answers may vary but could inclu

Question 7

Copper Corp.
Use the selected accounts for Copper Corp.presented below to answer the following question(s).
   ​
 $\text { DEPOSITS RECEIVED IN ADVANCE }$ ​
  
-Read the information on Copper Corp..  
On which date did the company make a cash sales to a customer?

Accepted Answer

A) August 2 
B) August 3 
C) August 5 
D) August 7 
A) August 2 
B) August 3 
C) August 5 
D) August 7

Question 8

If an accounting firm provides services on account,____________________ increase and stockholders' equity decreases.

Accepted Answer

The answer of If an accounting firm provides services on...

Question 9

The purchase of office equipment at a cost of $3,600 with an immediate down payment of $1,000 and agreement to pay the balance within 60 days is recorded by

Accepted Answer

A) a debit of $3,600 to Office Equipment,a credit of $1,000 to Cash,and a credit of $2,600 to Accounts Payable. 
B) a debit of $2,600 to Accounts Receivable,a debit of $1,000 to Cash,and a credit of $3,600 to Office Equipment. 
C) a debit of $3,600 to Office Equipment,a credit of $1,000 to Cash,and a credit of $2,600 to Accounts Receivable. 
D) None of these are correct. 
A) a debit of $3,600 to Office Equipment,a credit of $1,000 to Cash,and a credit of $2,600 to Accounts Payable. 
B) a debit of $2,600 to Accounts Receivable,a debit of $1,000 to Cash,and a credit of $3,600 to Office Equipment. 
C) a debit of $3,600 to Office Equipment,a credit of $1,000 to Cash,and a credit of $2,600 to Accounts Receivable. 
D) None of these are correct.

Question 10

Hennigan Company
Use the five transactions below for Hennigan Rentals to answer the questions that follow.
 Dec. 1 $\quad $Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days.

8 $\quad $Hennigan accepts advance deposits for tool rentals of $\$ 75$.

15 $\quad $Hennigan receives a bill from Farmer's Electric Company for $\$ 150$. Payment is due in 30 days.

20 $\quad $Customers are charged $\$ 750$ by Hennigan for tool rentals. Payment is due from the customers in 30 days.

31$\quad $ Hennigan receives $\$ 500$ in payments from the customers that were billed for rentals on December 20.
-Refer to the transactions for Hennigan Rentals. ?
Based on the December 15 transaction,Hennigan will record which of the following in its accounting records?

Accepted Answer

A) A credit in Accounts Payable for $150 
B) A credit in Accounts Receivable for $150 
C) A debit in Accounts Payable for $150 
D) A debit in Accounts Receivable for $150 
A) A credit in Accounts Payable for $150 
B) A credit in Accounts Receivable for $150 
C) A debit in Accounts Payable for $150 
D) A debit in Accounts Receivable for $150

Question 11

The Casan Company purchased a delivery van for $100,000 in cash.What is the effect on current assets?

Accepted Answer

A) Increase in current assets 
B) Decrease in current assets 
C) No effect on current assets 
D) Unable to determine 
A) Increase in current assets 
B) Decrease in current assets 
C) No effect on current assets 
D) Unable to determine

Question 12

A trial balance can be as informal as an adding machine tape with the account titles penciled in next to the debit and credit amounts.

Accepted Answer

A) True 
 B)False

Question 13

Hennigan Company
Use the five transactions below for Hennigan Rentals to answer the questions that follow.
 Dec. 1 $\quad $Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days.

8 $\quad $Hennigan accepts advance deposits for tool rentals of $\$ 75$.

15 $\quad $Hennigan receives a bill from Farmer's Electric Company for $\$ 150$. Payment is due in 30 days.

20 $\quad $Customers are charged $\$ 750$ by Hennigan for tool rentals. Payment is due from the customers in 30 days.

31$\quad $ Hennigan receives $\$ 500$ in payments from the customers that were billed for rentals on December 20.
-Refer to the transactions for Hennigan Rentals. ?
Based on the December 15 transaction,Farmer's Electric will record which of the following in its accounting records?

Accepted Answer

A) A credit in Accounts Payable for $150 
B) A credit in Accounts Receivable for $150 
C) A debit in Accounts Payable for $150 
D) A debit in Accounts Receivable for $150 
A) A credit in Accounts Payable for $150 
B) A credit in Accounts Receivable for $150 
C) A debit in Accounts Payable for $150 
D) A debit in Accounts Receivable for $150

Question 14

The credit side of an account is the right side,while the debit side is the left side.

Accepted Answer

A) True 
 B)False

Question 15

One effect on the accounting equation when a firm borrows money is that

Accepted Answer

A) stockholders' equity decreases. 
B) assets increase. 
C) liabilities decrease. 
D) assets decrease. 
A) stockholders' equity decreases. 
B) assets increase. 
C) liabilities decrease. 
D) assets decrease.

Question 16

Which one of the following statements is true?

Accepted Answer

A) External events (transactions)involve interactions between an entity and a party outside the entity. 
B) Every event or transaction that affects an entity is identified from a source document. 
C) All economic events can be reliably measured. 
D) The movement of raw materials into production is an external event. 
A) External events (transactions)involve interactions between an entity and a party outside the entity. 
B) Every event or transaction that affects an entity is identified from a source document. 
C) All economic events can be reliably measured. 
D) The movement of raw materials into production is an external event.

Question 17

The following list of accounts was taken from the general ledger of Bassett Corporation on December 31,2017.The bookkeeper thought it would be helpful if the accounts were arranged in alphabetical order.Each account contains the balance that is normal for that type of account;for example,Cash normally has a debit balance.Prepare a trial balance as of this date with the accounts arranged in the following order: (1)assets, (2)liabilities, (3)stockholders' equity, (4)revenues, (5)expenses,and (6)dividends.
 $\begin{array}{lr}
\text { Accounts Payable } & \$ 8,650 \
\text { Accounts Receivable } & 5,325 \
\text { Automobiles } & 9,200 \
\text { Buildings } & 150,000 \
\text { Capital Stock } & 100,000 \
\text { Cash } & 11,500 \
\text { Commissions Expense } & 2,600 \
\text { Commissions Revenue } & 12,750 \
\text { Dividends } & 2,000 \
\text { Equipment } & 85,000\
\text { Heat, Light, and Water Expense } & 1,400 \
\text { Income Tax Expense } & 1,700 \
\text { Income Taxes Payable } & 2,500 \
\text { Interest Revenue } & 1,300 \
\text { Land } & 50,000 \
\text { Notes Payable } & 90,000 \
\text { Office Sal aries Expense } & 6,000 \
\text { Office Supplies } & 500 \
\text { Retained Earnings } & 110,025
\end{array}$

Accepted Answer

None

Question 18

With few exceptions,the balance of an account should be on the side of the T account that causes the increase.

Accepted Answer

A) True 
 B)False

Question 19

​Payment of a cash dividend decreases both cash and stockholders' equity of the distributing business.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an internal event (transaction)?

Accepted Answer

A) Life guard salaries are paid by a swim club. 
B) Dividends are distributed to shareholders. 
C) Eggs used to make omelets in a restaurant are purchased. 
D) None of these are correct. 
A) Life guard salaries are paid by a swim club. 
B) Dividends are distributed to shareholders. 
C) Eggs used to make omelets in a restaurant are purchased. 
D) None of these are correct.

Liabilities and stockholders' equity are ____________________ by debits.

A cancelled check would be a source document for which of the following?

Which of the following transactions affects the liabilities for Gravette,Inc.?

Provide at least three source documents and the related event for which each would provide the evidence to record.

If an accounting firm provides services on account,____________________ increase and stockholders' equity decreases.

The purchase of office equipment at a cost of $3,600 with an immediate down payment of $1,000 and agreement to pay the balance within 60 days is recorded by

The Casan Company purchased a delivery van for $100,000 in cash.What is the effect on current assets?

A trial balance can be as informal as an adding machine tape with the account titles penciled in next to the debit and credit amounts.

The credit side of an account is the right side,while the debit side is the left side.

One effect on the accounting equation when a firm borrows money is that

Which one of the following statements is true?

With few exceptions,the balance of an account should be on the side of the T account that causes the increase.

Payment of a cash dividend decreases both cash and stockholders' equity of the distributing business.

Which of the following is an internal event (transaction)?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 3: Processing Accounting Information

Liabilities and stockholders' equity are ____________________ by debits.

A cancelled check would be a source document for which of the following?

Which of the following transactions affects the liabilities for Gravette,Inc.?

Provide at least three source documents and the related event for which each would provide the evidence to record.

If an accounting firm provides services on account,____________________ increase and stockholders' equity decreases.

The purchase of office equipment at a cost of $3,600 with an immediate down payment of $1,000 and agreement to pay the balance within 60 days is recorded by

The Casan Company purchased a delivery van for $100,000 in cash.What is the effect on current assets?

A trial balance can be as informal as an adding machine tape with the account titles penciled in next to the debit and credit amounts.

The credit side of an account is the right side,while the debit side is the left side.

One effect on the accounting equation when a firm borrows money is that

Which one of the following statements is true?

With few exceptions,the balance of an account should be on the side of the T account that causes the increase.

​Payment of a cash dividend decreases both cash and stockholders' equity of the distributing business.

Which of the following is an internal event (transaction)?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Payment of a cash dividend decreases both cash and stockholders' equity of the distributing business.