Exam 15: Fundamentals of Accounting

John pays cash to buy auto insurance for a three-year period starting January 1.What is the accounting effect of this transaction on John's records when he makes the payment?

(Multiple Choice)

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Question 21

Which of the following statements is true about control accounts?

(Multiple Choice)

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Question 22

What is the accounting effect of using the accrual basis of accounting?

(Multiple Choice)

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Question 23

Tina opens a business to do small printing jobs.Her first few transactions are shown below.For each of them,state which two of the following six possibilities occurred as a result of each transaction - an asset increased,an asset decreased,a liability increased,a liability decreased,equity increased,or equity decreased: a.Tina invested $25,000 of her personal cash in the business b.Tina purchased a high-speed copying machine on credit;the machine should last 4 years c.Tina paid cash to a student she hired to make deliveries for her that day.

(Short Answer)

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Question 24

State whether each of the following statements is true or false.Explain the true statements and discuss why the false statements are false.

As expenses increase,the equity of an entity will decrease.

False

Posting is the process of copying information from ledgers to journals.

True

A debit always results in increasing the balance in an account.

Correct Answer:

Verified

As expenses increase,the equity of an entity will decrease.

Posting is the process of copying information from ledgers to journals.

(Matching)

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Question 25

Prepare journal entries to record the following transactions regarding a fire insurance policy purchased by Chang Electronics.Chang's business operates on a calendar-year basis. a.April 1,2013 - Chang arranges to buy fire insurance.He receives a bill for $10,000 for an insurance policy that covers the period April 1,2013 through March 31,2014. b.April 10 - Chang pays the insurance bill. c.December 31- Chang prepares financial statements for the year ended.December 31,2013.He prepares an adjusting entry regarding insurance.

(Essay)

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Question 26

Prepare journal entries to record the following transactions for Ted's Garage: a.Ted does extensive body work on Jim's auto,and sends Jim a bill for $1,700. b.Ted receives Jim's check for $1,700. c.Ted's mechanic earns $2,000 for a week's work.Ted pays him $1,800 after deducting $200 withholding taxes. d.Ted prepares financial statements at the end of the month.He makes an accrual for $400 for unpaid salaries.

(Essay)

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Question 27

A theater producer's accounting year ends on June 30.Which of the following year-end transactions or events results in an accounting entry referred to as a deferral?

(Multiple Choice)

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Question 28

Assume that an organization's operations result in a net profit for the year.When the books are closed,what is the accounting effect of the journal entry that closes out the net profit?

(Multiple Choice)

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Question 29

What adjusting journal entry is made when an entity wants to prepare financial statements,owes interest on a borrowing during the year,but hasn't paid either the loan or the interest?

(Multiple Choice)

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Question 30

Which of the following formulations of the accounting equation is incorrect?

(Multiple Choice)

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Question 31

Showing 21 - 31 of 31

John pays cash to buy auto insurance for a three-year period starting January 1.What is the accounting effect of this transaction on John's records when he makes the payment?

Which of the following statements is true about control accounts?

What is the accounting effect of using the accrual basis of accounting?

A theater producer's accounting year ends on June 30.Which of the following year-end transactions or events results in an accounting entry referred to as a deferral?

Assume that an organization's operations result in a net profit for the year.When the books are closed,what is the accounting effect of the journal entry that closes out the net profit?

What adjusting journal entry is made when an entity wants to prepare financial statements,owes interest on a borrowing during the year,but hasn't paid either the loan or the interest?

Which of the following formulations of the accounting equation is incorrect?

Governmental and Not-For-Profit

The Use of Funds in Governmental Accounting

Budgetary Considerations in Governmental Accounting

The Governmental Fund Accounting Cycle

The Governmental Fund Accounting Cycle

The Governmental Fund Accounting Cycle

The Governmental Accounting Cycle

The Governmental Fund Accounting Cycle--Fiduciary Funds

Reporting Principles and Preparation of Fund Financial Statements

Government-Wide Financial Statements

Federal Government Accounting and Reporting

Accounting for Not-For-Profit Organizations

Accounting for Health Care Organizations

Analysis of Financial Statements and Financial Condition

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