Question 1

If a company provides services to a customer on credit, the company providing the service should credit Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 2

Revenues and expenses are two categories of ____________________ accounts.

Accepted Answer

The answer of Revenues and expenses are two categories of...

Question 3

A business uses a credit to record:

Accepted Answer

A) An increase in an expense account. 
B) A decrease in an asset account. 
C) A decrease in an unearned revenue account. 
D) A decrease in a revenue account. 
E) A decrease in an equity account. 
A) An increase in an expense account. 
B) A decrease in an asset account. 
C) A decrease in an unearned revenue account. 
D) A decrease in a revenue account. 
E) A decrease in an equity account.

Question 4

Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the current year:   If Jerry invested an additional $12,000 in the business and withdrew $5,000 during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?

Accepted Answer

Beginning stockholders' equity = $114,00

Question 5

The accounting process to get from transactions and events to financial statements begins with:

Accepted Answer

A) Identifying business transactions and events from source documents. 
B) Record relevant transactions and events in a journal. 
C) Analyze transactions and events using the accounting equation. 
D) Presentation of financial information to decision-makers. 
E) Preparation and analysis of the trial balance and financial statements. 
A) Identifying business transactions and events from source documents. 
B) Record relevant transactions and events in a journal. 
C) Analyze transactions and events using the accounting equation. 
D) Presentation of financial information to decision-makers. 
E) Preparation and analysis of the trial balance and financial statements.

Question 6

Identify the statement below that is incorrect.

Accepted Answer

A) The normal balance of accounts receivable is a debit. 
B) The normal balance of dividends is a debit. 
C) The normal balance of unearned revenues is a credit. 
D) The normal balance of an expense account is a credit. 
E) The normal balance of the common stock account is a credit. 
A) The normal balance of accounts receivable is a debit. 
B) The normal balance of dividends is a debit. 
C) The normal balance of unearned revenues is a credit. 
D) The normal balance of an expense account is a credit. 
E) The normal balance of the common stock account is a credit.

Question 7

Crediting an expense account decreases it.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a step in the accounting process?

Accepted Answer

A) Record relevant transactions and events in a journal. 
B) Post journal information to the ledger accounts. 
C) Prepare and analyze the trial balance and financial statements. 
D) Analyzing each transaction using the accounting equation. 
E) Verify that revenues and expenses are equal. 
A) Record relevant transactions and events in a journal. 
B) Post journal information to the ledger accounts. 
C) Prepare and analyze the trial balance and financial statements. 
D) Analyzing each transaction using the accounting equation. 
E) Verify that revenues and expenses are equal.

Question 9

The following transactions occurred during July: 1. Received $900 cash for services provided to a customer during July.
2) Received $2,200 cash investment from Bob Johnson, the stockholder of the business.
3) Received $750 from a customer in partial payment of his account receivable which arose from sales in June.
4) Provided services to a customer on credit, $375.
5) Borrowed $6,000 from the bank by signing a promissory note.
6) Received $1,250 cash from a customer for services to be provided next year.
What was the amount of revenue for July?

Accepted Answer

A) $900. 
B) $1,275. 
C) $2,525. 
D) $3,275. 
E) $11,100. 
A) $900. 
B) $1,275. 
C) $2,525. 
D) $3,275. 
E) $11,100.

Question 10

A debit is used to record which of the following?

Accepted Answer

A) A decrease in an asset account. 
B) A decrease in an expense account. 
C) An increase in a revenue account. 
D) An increase in a contributed capital account. 
E) An increase in the dividends account. 
A) A decrease in an asset account. 
B) A decrease in an expense account. 
C) An increase in a revenue account. 
D) An increase in a contributed capital account. 
E) An increase in the dividends account.

Question 11

Identify the item below that would cause the trial balance to not balance.

Accepted Answer

A) A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. 
B) The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable. 
C) A $50 cash receipt for the performance of a service was not recorded at all. 
D) The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200. 
E) The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750. 
A) A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. 
B) The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable. 
C) A $50 cash receipt for the performance of a service was not recorded at all. 
D) The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200. 
E) The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

Question 12

Jarrod Automotive, Inc. owned and operated by Jarrod Johnson, began business in September of the current year. Jarrod, a mechanic, had no experience with recording business transactions. As a result, Jarrod entered all of September's transactions directly into the ledger accounts. When he tried to locate a particular entry he found it confusing and time consuming. He has hired you to improve his accounting procedures. The accounts in his General Ledger follow:       Prepare the general journal entries, in chronological order (a) through (e), from the T-account entries shown. Include a brief description of the probable nature of each transaction.

Accepted Answer

The answer of Jarrod Automotive, Inc. owned and operated by...

Question 13

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

Question 14

The following trial balance is prepared from the general ledger of HG's Auto Maintenance, Inc.   Because the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made:
1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable.
2. An investment of $500 cash by the owner was debited to Common Stock and credited to Cash.
3. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted from the computation.
4. One debit of $300 to the Dividends account was posted as a credit.
5. Office equipment purchased for $800 was posted to the Shop Equipment account.
6. One entire entry was not posted to the general ledger. The transaction involved the receipt of $125 cash for repair services performed for cash.
Prepare a corrected trial balance for the HG's Auto Maintenance, Inc. as of October 31.

Accepted Answer

@#IMG-DLM& ^aCash: Balance $1,975 + $1,000 (#2) + 12

Question 15

Unearned revenue is classified as a(an) _______________ on a business's balance sheet.

Accepted Answer

The answer of Unearned revenue is classified as a(an) _______________...

Question 16

If cash was incorrectly debited for $100 instead of correctly crediting it for $100, the cash account's balance will be overstated (too high).

Accepted Answer

A) True 
 B)False

Question 17

Identify the correct formula below used to calculate the debt ratio.

Accepted Answer

A) Total Equity/Total Liabilities. 
B) Total Liabilities/Total Equity. 
C) Total Liabilities/Total Assets. 
D) Total Assets/Total Liabilities. 
E) Total Equity/Total Assets. 
A) Total Equity/Total Liabilities. 
B) Total Liabilities/Total Equity. 
C) Total Liabilities/Total Assets. 
D) Total Assets/Total Liabilities. 
E) Total Equity/Total Assets.

Question 18

A debit:

Accepted Answer

A) Always increases an account. 
B) Is the right-hand side of a T-account. 
C) Always decreases an account. 
D) Is the left-hand side of a T-account. 
E) Is not need to record a transaction. 
A) Always increases an account. 
B) Is the right-hand side of a T-account. 
C) Always decreases an account. 
D) Is the left-hand side of a T-account. 
E) Is not need to record a transaction.

Question 19

_____________________________ 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 20

The four categories of equity accounts are ________________, __________________, ______________________, and ______________________.

Accepted Answer

contributed capital

If a company provides services to a customer on credit, the company providing the service should credit Accounts Receivable.

Revenues and expenses are two categories of ____________________ accounts.

A business uses a credit to record:

Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the current year: If Jerry invested an additional $12,000 in the business and withdrew $5,000 during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?

The accounting process to get from transactions and events to financial statements begins with:

Identify the statement below that is incorrect.

Crediting an expense account decreases it.

Which of the following is not a step in the accounting process?

A debit is used to record which of the following?

Identify the item below that would cause the trial balance to not balance.

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

Unearned revenue is classified as a(an) _______________ on a business's balance sheet.

If cash was incorrectly debited for $100 instead of correctly crediting it for $100, the cash account's balance will be overstated (too high).

Identify the correct formula below used to calculate the debt ratio.

A debit:

_____________________________ 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.

The four categories of equity accounts are , , , and ______.

Introducing Financial Accounting

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Exam 2: Accounting System and Financial Statements

If a company provides services to a customer on credit, the company providing the service should credit Accounts Receivable.

Revenues and expenses are two categories of ____________________ accounts.

A business uses a credit to record:

Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the current year: If Jerry invested an additional $12,000 in the business and withdrew $5,000 during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?

The accounting process to get from transactions and events to financial statements begins with:

Identify the statement below that is incorrect.

Crediting an expense account decreases it.

Which of the following is not a step in the accounting process?

A debit is used to record which of the following?

Identify the item below that would cause the trial balance to not balance.

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

Unearned revenue is classified as a(an) _______________ on a business's balance sheet.

If cash was incorrectly debited for $100 instead of correctly crediting it for $100, the cash account's balance will be overstated (too high).

Identify the correct formula below used to calculate the debt ratio.

A debit:

_____________________________ 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.

The four categories of equity accounts are ________________, __________________, ______________________, and ______________________.

Introducing Financial Accounting

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

The four categories of equity accounts are , , , and ______.