Question 1

Which of the following is an illustration of the classification issue?

Accepted Answer

A) At what amount should land be shown on the balance sheet? 
B) At what point should the payment of salaries to employees be recorded? 
C) Should supplies be recorded as an asset or as an expense? 
D) At what point should a bill be paid for the purchase of an item? 
A) At what amount should land be shown on the balance sheet? 
B) At what point should the payment of salaries to employees be recorded? 
C) Should supplies be recorded as an asset or as an expense? 
D) At what point should a bill be paid for the purchase of an item?

Question 2

The withdrawal of cash by the owner will

Accepted Answer

A) decrease net income. 
B) increase liabilities. 
C) not affect total assets. 
D) decrease owner's equity. 
A) decrease net income. 
B) increase liabilities. 
C) not affect total assets. 
D) decrease owner's equity.

Question 3

What are the steps in the posting process for the debit side of an entry?

Accepted Answer

The steps in the posting process for the

Question 4

Which of the following business events is not a transaction

Accepted Answer

A) Signing a contract. 
B) Paying wages. 
C) Receiving goods. 
D) Purchasing a service. 
A) Signing a contract. 
B) Paying wages. 
C) Receiving goods. 
D) Purchasing a service.

Question 5

One of the general rules of the double-entry system is that total debits must always be equal to total credits.

Accepted Answer

A) True 
 B)False

Question 6

One might see "J5" correctly placed in the Post.Ref.column of the journal.

Accepted Answer

A) True 
 B)False

Question 7

The general ledger is used to record the details of each transaction.The general journal is used to update each account.

Accepted Answer

A) True 
 B)False

Question 8

The journal is a chronological record of all transactions.

Accepted Answer

A) True 
 B)False

Question 9

Recording an account with a debit balance as a credit,or vice versa,will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

Accepted Answer

A) True 
 B)False

Question 10

An $800 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

Accepted Answer

A) $0 
B) $400 
C) $800 
D) $1,600 
A) $0 
B) $400 
C) $800 
D) $1,600

Question 11

Slim Co.is ordering a new computer for its corporate office.Which of the following events would trigger the recognition of the computer and related liability on Slim's books?

Accepted Answer

A) The company generates a purchase order. 
B) The purchasing department sends a purchase order to the supplier. 
C) The company receives the computer. 
D) The company receives the bill from the supplier. 
A) The company generates a purchase order. 
B) The purchasing department sends a purchase order to the supplier. 
C) The company receives the computer. 
D) The company receives the bill from the supplier.

Question 12

All expenses incurred by a business are paid immediately in cash.

Accepted Answer

A) True 
 B)False

Question 13

In a journal entry,debits are always indented.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is false about a journal entry?

Accepted Answer

A) All debits are always listed before any credits. 
B) It may have more than one debit or credit entry. 
C) Credits are always indented. 
D) Accounts that are increased are always listed first. 
A) All debits are always listed before any credits. 
B) It may have more than one debit or credit entry. 
C) Credits are always indented. 
D) Accounts that are increased are always listed first.

Question 15

The trial balance for Parker Company is as follows: 
 
On the trial balance,total assets equal

Accepted Answer

A) $108,000 
B) $104,000 
C) $88,000 
D) $68,000 
A) $108,000 
B) $104,000 
C) $88,000 
D) $68,000

Question 16

Business transactions are economic events that should be recorded in the accounting records.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following accounts is increased with a debit?

Accepted Answer

A) Jim Webb,Capital 
B) Rent Payable 
C) Service Revenue 
D) Prepaid Insurance 
A) Jim Webb,Capital 
B) Rent Payable 
C) Service Revenue 
D) Prepaid Insurance

Question 18

The account most recently posted is determined most efficiently by referring to the

Accepted Answer

A) Post.Ref.column of the ledger. 
B) balance column of the ledger. 
C) date column of the general journal. 
D) Post.Ref.column of the general journal. 
A) Post.Ref.column of the ledger. 
B) balance column of the ledger. 
C) date column of the general journal. 
D) Post.Ref.column of the general journal.

Question 19

A transposition error will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

Accepted Answer

A) True 
 B)False

Question 20

Copper Company engaged in the following transactions during April  
-What is the amount of cash still to be collected?

Accepted Answer

A) $126,000 
B) $341,000 
C) $144,000 
D) $18,000 
A) $126,000 
B) $341,000 
C) $144,000 
D) $18,000

Exam 2: Analyzing and Recording Business Transactions

Which of the following is an illustration of the classification issue?

The withdrawal of cash by the owner will

What are the steps in the posting process for the debit side of an entry?

Which of the following business events is not a transaction

One of the general rules of the double-entry system is that total debits must always be equal to total credits.

One might see "J5" correctly placed in the Post.Ref.column of the journal.

The general ledger is used to record the details of each transaction.The general journal is used to update each account.

The journal is a chronological record of all transactions.

Recording an account with a debit balance as a credit,or vice versa,will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

An $800 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

Slim Co.is ordering a new computer for its corporate office.Which of the following events would trigger the recognition of the computer and related liability on Slim's books?

All expenses incurred by a business are paid immediately in cash.

In a journal entry,debits are always indented.

Which of the following statements is false about a journal entry?

The trial balance for Parker Company is as follows: On the trial balance,total assets equal

Business transactions are economic events that should be recorded in the accounting records.

Which of the following accounts is increased with a debit?

The account most recently posted is determined most efficiently by referring to the

A transposition error will cause the trial balance to be out of balance by an amount that is evenly divisible by two.

Copper Company engaged in the following transactions during April -What is the amount of cash still to be collected?

Accounting Principles and the Financial Statements

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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