Question 1

An example of an asset account is:

Accepted Answer

A)  Wages Payable. 
B)  Purchases. 
C)  Accounts Receivable. 
D)  Sales. 
E)  Rental Income. 
A)  Wages Payable. 
B)  Purchases. 
C)  Accounts Receivable. 
D)  Sales. 
E)  Rental Income.

Question 2

The heading of all financial statements include

Accepted Answer

A)  name of the company. 
B)  title of the financial statement. 
C)  period of time covered by the financial statement. 
D)  all of the answers listed. 
A)  name of the company. 
B)  title of the financial statement. 
C)  period of time covered by the financial statement. 
D)  all of the answers listed.

Question 3

What is meant when we say that revenue and expenses fall under the umbrella of owner's equity? Why does revenue have the same placement of plus and minus signs as the Capital account, and why do expenses have the opposite placement of plus and minus signs as does the Capital account?

Accepted Answer

Revenue is said to fall under the umbrel

Question 4

The asset that a business enterprise creates when it maintains accounts for its charge customers is

Accepted Answer

A)  Accounts Payable. 
B)  Drawing. 
C)  Accounts Receivable. 
D)  Capital. 
E)  none of these. 
A)  Accounts Payable. 
B)  Drawing. 
C)  Accounts Receivable. 
D)  Capital. 
E)  none of these.

Question 5

Accounts Receivable is an asset account whose normal balance is a credit.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements shows the difference in total revenue and total expenses and reports the performance of a business?

Accepted Answer

A)  A balance sheet 
B)  An income statement 
C)  A statement of owner's equity 
D)  A funds flow statement 
A)  A balance sheet 
B)  An income statement 
C)  A statement of owner's equity 
D)  A funds flow statement

Question 7

The ________________ shows the financial position of a company.

Accepted Answer

A)  income statement 
B)  balance sheet 
C)  statement of owner's equity 
D)  none of the answers listed 
A)  income statement 
B)  balance sheet 
C)  statement of owner's equity 
D)  none of the answers listed

Question 8

Match the terms below with the correct definitions.
-Inequality of the total debits and credits in the trial balance

Accepted Answer

A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry 
A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry

Question 9

The accounts and their balances for Zeal Delivery Service as of December 31 of this year are presented below.
?
?
 $$\begin{array} { l r } 
\text { Accounts Receivable } & \$ 7,000 \
\text { Accounts Payable } & 60,000 \
\text { Advertising Expense } & 1,500 \
\text { B. Mark, Capital } & 65,000 \
\text { B. Mark, Drawing } & 13,000 \
\text { Cash } & 65,000 \
\text { Equipment } & 50,000 \
\text { Income from Delivery Services } & 30,000 \
\text { Insurance Expense } & 2,000 \
\text { Rent Expense } & 8,000 \
\text { Supplies } & 1,000 \
\text { Utilities Expense } & 1,500 \
\text { Wages Expense } & 6,000
\end{array}$$ Instructions:
1.Prepare an income statement for the year ended December 31.
2.Prepare a statement of owner's equity for the year ended December 31.
3.Prepare a balance sheet as of December 31.

Accepted Answer

None

Question 10

The Accounts Receivable T account shows the following debit and credit amounts: 
$300, debit
$1,000, debit
$500, credit
$120, credit
What is the balance of the account?

Accepted Answer

A)  $1,200, debit 
B)  $500, credit 
C)  $680, debit 
D)  $900, credit 
E)  $2,000, debit 
A)  $1,200, debit 
B)  $500, credit 
C)  $680, debit 
D)  $900, credit 
E)  $2,000, debit

Question 11

Explain the trial balance, including when and why it is prepared.

Accepted Answer

The trial balance is a listing

Question 12

The ________________ shows how and why the owner's equity account has changed over a stated period of time.

Accepted Answer

A)  balance sheet 
B)  income statement 
C)  statement of owner's equity 
D)  statement of change 
A)  balance sheet 
B)  income statement 
C)  statement of owner's equity 
D)  statement of change

Question 13

The receipt of cash on account from a customer should be recorded as

Accepted Answer

A)  a debit to Cash and a credit to Accounts Payable. 
B)  a debit to Cash and a credit to Income from Services. 
C)  a debit to Cash and a credit to Accounts Receivable. 
D)  a debit to Cash and a credit to the Capital account. 
E)  none of these. 
A)  a debit to Cash and a credit to Accounts Payable. 
B)  a debit to Cash and a credit to Income from Services. 
C)  a debit to Cash and a credit to Accounts Receivable. 
D)  a debit to Cash and a credit to the Capital account. 
E)  none of these.

Question 14

Match the terms below with the correct definitions.
-A, L, OE, R, E

Accepted Answer

A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry 
A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry

Question 15

Accounts Payable is reported on which financial statement?

Accepted Answer

A)  balance sheet 
B)  income statement 
C)  statement of owner's equity 
D)  none of the answers listed 
A)  balance sheet 
B)  income statement 
C)  statement of owner's equity 
D)  none of the answers listed

Question 16

A credit always means an entry on the right side of an account.

Accepted Answer

A) True 
 B)False

Question 17

A purchase of supplies on account should be recorded as

Accepted Answer

A)  a debit to Supplies and a credit to Cash. 
B)  a debit to Accounts Payable and a credit to Supplies. 
C)  a debit to Supplies and a credit to Accounts Payable. 
D)  a debit to Supplies Expense and a credit to Accounts Receivable. 
E)  none of these. 
A)  a debit to Supplies and a credit to Cash. 
B)  a debit to Accounts Payable and a credit to Supplies. 
C)  a debit to Supplies and a credit to Accounts Payable. 
D)  a debit to Supplies Expense and a credit to Accounts Receivable. 
E)  none of these.

Question 18

A credit signifies increases in liabilities, capital, and revenue, and decreases in assets, drawing, and expenses.

Accepted Answer

A) True 
 B)False

Question 19

If equipment costing $930 is bought by paying $300 as a down payment and the remaining $630 in 30 days, owner's equity is increased by $930.

Accepted Answer

A) True 
 B)False

Question 20

A transaction with more than one debit and/or more than one credit is called a compound entry.

Accepted Answer

A) True 
 B)False

An example of an asset account is:

The heading of all financial statements include

What is meant when we say that revenue and expenses fall under the umbrella of owner's equity? Why does revenue have the same placement of plus and minus signs as the Capital account, and why do expenses have the opposite placement of plus and minus signs as does the Capital account?

The asset that a business enterprise creates when it maintains accounts for its charge customers is

Accounts Receivable is an asset account whose normal balance is a credit.

Which of the following statements shows the difference in total revenue and total expenses and reports the performance of a business?

The ________________ shows the financial position of a company.

Match the terms below with the correct definitions. -Inequality of the total debits and credits in the trial balance

The Accounts Receivable T account shows the following debit and credit amounts: $300, debit $1,000, debit $500, credit $120, credit What is the balance of the account?

Explain the trial balance, including when and why it is prepared.

The ________________ shows how and why the owner's equity account has changed over a stated period of time.

The receipt of cash on account from a customer should be recorded as

Match the terms below with the correct definitions. -A, L, OE, R, E

Accounts Payable is reported on which financial statement?

A credit always means an entry on the right side of an account.

A purchase of supplies on account should be recorded as

A credit signifies increases in liabilities, capital, and revenue, and decreases in assets, drawing, and expenses.

If equipment costing $930 is bought by paying $300 as a down payment and the remaining $630 in 30 days, owner's equity is increased by $930.

A transaction with more than one debit and/or more than one credit is called a compound entry.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 2: T Accounts, Debits and Credits, Trial Balance, and Financial Statements

An example of an asset account is:

The heading of all financial statements include

What is meant when we say that revenue and expenses fall under the umbrella of owner's equity? Why does revenue have the same placement of plus and minus signs as the Capital account, and why do expenses have the opposite placement of plus and minus signs as does the Capital account?

The asset that a business enterprise creates when it maintains accounts for its charge customers is

Accounts Receivable is an asset account whose normal balance is a credit.

Which of the following statements shows the difference in total revenue and total expenses and reports the performance of a business?

The ________________ shows the financial position of a company.

Match the terms below with the correct definitions. -Inequality of the total debits and credits in the trial balance

The Accounts Receivable T account shows the following debit and credit amounts: $300, debit $1,000, debit $500, credit $120, credit What is the balance of the account?

Explain the trial balance, including when and why it is prepared.

The ________________ shows how and why the owner's equity account has changed over a stated period of time.

The receipt of cash on account from a customer should be recorded as

Match the terms below with the correct definitions. -A, L, OE, R, E

Accounts Payable is reported on which financial statement?

A credit always means an entry on the right side of an account.

A purchase of supplies on account should be recorded as

A credit signifies increases in liabilities, capital, and revenue, and decreases in assets, drawing, and expenses.

If equipment costing $930 is bought by paying $300 as a down payment and the remaining $630 in 30 days, owner's equity is increased by $930.

A transaction with more than one debit and/or more than one credit is called a compound entry.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters