Question 1

The same four basic financial statements are prepared by both U.S. GAAP and IFRS.

Accepted Answer

A) True 
 B)False

Question 2

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.

Accepted Answer

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

Question 3

Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. Andrea, the stockholder, invested $13,500 cash in the business.
2) Andrea contributed $20,000 of photography equipment to the business.
3) The company paid $2,100 cash for an insurance policy covering the next 24 months.
4) The company received $5,700 cash for services provided during January.
5) The company purchased $6,200 of office equipment on credit.
6) The company provided $2,750 of services to customers on account.
7) The company paid cash of $1,500 for monthly rent.
8) The company paid $3,100 on the office equipment purchased in transaction #5 above.
9) Paid $275 cash for January utilities.
Based on this information, the balance in the stockholders' equity reported on the Balance Sheet at the end of the month would be:

Accepted Answer

A) $31,400. 
B) $39,200. 
C) $31,150. 
D) $40,175. 
E) $30,875. 
A) $31,400. 
B) $39,200. 
C) $31,150. 
D) $40,175. 
E) $30,875.

Question 4

The _____________________ is found by determining the difference between total debits and total credits for an account, including any beginning balance.

Accepted Answer

The answer of The _____________________ is found by determining the...

Question 5

Identify the account below that is classified as an asset account.

Accepted Answer

A) Unearned Revenue 
B) Accounts Payable 
C) Supplies 
D) Common Stock 
E) Service Revenue 
A) Unearned Revenue 
B) Accounts Payable 
C) Supplies 
D) Common Stock 
E) Service Revenue

Question 6

Indicate on which of the financial statements the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet. More than one statement may be appropriate for some items.

Accepted Answer

The answer of Indicate on which of the financial statements...

Question 7

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

Accepted Answer

A) Assets and expenses. 
B) Assets and revenues. 
C) Revenues and expenses. 
D) Liabilities and expenses. 
E) Liabilities and dividends. 
A) Assets and expenses. 
B) Assets and revenues. 
C) Revenues and expenses. 
D) Liabilities and expenses. 
E) Liabilities and dividends.

Question 8

Custom Air purchased $5,000 of supplies on account. The correct journal entry to record this transaction is:

Accepted Answer

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

Question 9

The third step in the analyzing and recording process is to post the information to the ___________________.

Accepted Answer

The answer of The third step in the analyzing and...

Question 10

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 during the year, but withdrew no assets 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 11

Figgaro Company Inc.'s accounts and their balances, as of the end of August, are included below. All accounts have normal balances:   a. Calculate net income.
b. Determine the amount of retained earnings to be shown on the August 31 balance sheet.

Accepted Answer

A.
$75,000
Service revenues earned
(3,60

Question 12

The posting process is the link between the _______________ and the _____________.

Accepted Answer

The answer of The posting process is the link between...

Question 13

Ferguson's Computer Repairs, Inc. opened on February 1 of the current year. During February, the following transactions occurred and were recorded in the company's books: 1. The owner invested $20,000 cash in the business.
2) The contributed $50,000 of equipment to the corporation.
3) The company paid $1,000 cash to rent office space for the month.
4) The company provided $6,000 of services for cash during February.
5) The company paid $2,200 for salaries for the month.
6) The company provided $3,000 of services to customers on account.
7) The company paid cash of $800 for monthly utilities.
8) The company paid a cash dividend of $500 to the owner.
Based on this information, net income for February would be:

Accepted Answer

A) $5,000. 
B) $4,200. 
C) $25,000. 
D) $24,200. 
E) $9,000. 
A) $5,000. 
B) $4,200. 
C) $25,000. 
D) $24,200. 
E) $9,000.

Question 14

Identify the account below that impacts the Equity of a business.

Accepted Answer

A) Utilities Expense 
B) Accounts Payable 
C) Accounts Receivable 
D) Cash 
E) Unearned Revenue 
A) Utilities Expense 
B) Accounts Payable 
C) Accounts Receivable 
D) Cash 
E) Unearned Revenue

Question 15

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

Accepted Answer

A) True 
 B)False

Question 16

On May 31, the Cash account of Bottle's R US had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?

Accepted Answer

A) A $0 balance. 
B) A $4,300 debit balance. 
C) A $4,300 credit balance. 
D) A $5,700 debit balance. 
E) A $5,700 credit balancE.Beginning Cash Balance + Debits - Credits = Ending Cash Balance 
A) A $0 balance. 
B) A $4,300 debit balance. 
C) A $4,300 credit balance. 
D) A $5,700 debit balance. 
E) A $5,700 credit balancE.Beginning Cash Balance + Debits - Credits = Ending Cash Balance

Question 17

Cash paid to stockholders by the business of a corporation and used for personal expenses, should be treated as an expense of the business.

Accepted Answer

A) True 
 B)False

Question 18

The general journal is known as the book of final entry because financial statements are prepared from it.

Accepted Answer

A) True 
 B)False

Question 19

Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the current year:   If Jerry made no investments in the business but 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 20

The accountant for a new company is establishing the chart of accounts for the company based on the accounts she expects to be used. She has decided to use a three digit account number with each account type starting with a different number. Which of the following numbers would you expect the Equity range to begin with?

Accepted Answer

A) 900 
B) 700 
C) 300 
D) 200 
E) 100 
A) 900 
B) 700 
C) 300 
D) 200 
E) 100

The same four basic financial statements are prepared by both U.S. GAAP and IFRS.

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.

The _____________________ is found by determining the difference between total debits and total credits for an account, including any beginning balance.

Identify the account below that is classified as an asset account.

Indicate on which of the financial statements the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet. More than one statement may be appropriate for some items.

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

Custom Air purchased $5,000 of supplies on account. The correct journal entry to record this transaction is:

The third step in the analyzing and recording process is to post the information to the ___________________.

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 during the year, but withdrew no assets during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?

Figgaro Company Inc.'s accounts and their balances, as of the end of August, are included below. All accounts have normal balances: a. Calculate net income. b. Determine the amount of retained earnings to be shown on the August 31 balance sheet.

The posting process is the link between the ___ and the _.

Identify the account below that impacts the Equity of a business.

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

On May 31, the Cash account of Bottle's R US had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?

Cash paid to stockholders by the business of a corporation and used for personal expenses, should be treated as an expense of the business.

The general journal is known as the book of final entry because financial statements are prepared from it.

Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the current year: If Jerry made no investments in the business but withdrew $5,000 during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?

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

The same four basic financial statements are prepared by both U.S. GAAP and IFRS.

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.

The _____________________ is found by determining the difference between total debits and total credits for an account, including any beginning balance.

Identify the account below that is classified as an asset account.

Indicate on which of the financial statements the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet. More than one statement may be appropriate for some items.

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

Custom Air purchased $5,000 of supplies on account. The correct journal entry to record this transaction is:

The third step in the analyzing and recording process is to post the information to the ___________________.

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 during the year, but withdrew no assets during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?

Figgaro Company Inc.'s accounts and their balances, as of the end of August, are included below. All accounts have normal balances: a. Calculate net income. b. Determine the amount of retained earnings to be shown on the August 31 balance sheet.

The posting process is the link between the _______________ and the _____________.

Identify the account below that impacts the Equity of a business.

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

On May 31, the Cash account of Bottle's R US had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?

Cash paid to stockholders by the business of a corporation and used for personal expenses, should be treated as an expense of the business.

The general journal is known as the book of final entry because financial statements are prepared from it.

Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the current year: If Jerry made no investments in the business but withdrew $5,000 during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?

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 posting process is the link between the ___ and the _.