Question 1

The order the financial statements are prepared is as follows:

Accepted Answer

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

Question 2

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 C

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

Classify each of the following items as to whether they would appear on a balance sheet (BS), income statement (IS), or neither (N).

Accepted Answer

The answer of Classify each of the following items as...

Question 5

Which of the following is correct concerning the time period reported on financial statements?

Accepted Answer

A) The balance sheet is reported as of a period of time. 
B) The income statement is reported as of a specific date. 
C) The statement of owner's equity is reported as of a specific date. 
D) The income statement is reported as of a period of time. 
A) The balance sheet is reported as of a period of time. 
B) The income statement is reported as of a specific date. 
C) The statement of owner's equity is reported as of a specific date. 
D) The income statement is reported as of a period of time.

Question 6

Withdrawals of assets from a business by the owners are considered to be expenses.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not true?

Accepted Answer

A) The capital account would be increased with a debit. 
B) The drawing account would be increased with a debit. 
C) An asset account would be decreased with a credit. 
D) A liability account would be increased with a credit. 
A) The capital account would be increased with a debit. 
B) The drawing account would be increased with a debit. 
C) An asset account would be decreased with a credit. 
D) A liability account would be increased with a credit.

Question 8

Rent Expense is reported on which financial statement?

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 9

The accountant recorded income from services as $4,500 when it should have been recorded as $4,050. This is an example of a ________________.

Accepted Answer

A) matching error 
B) footing 
C) slide 
D) transposition 
A) matching error 
B) footing 
C) slide 
D) transposition

Question 10

Owner withdrawals are reported on which financial statement?

Accepted Answer

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

Question 11

The Accounts Receivable T account shows the following $250, debit
$1,250, debit
$300, credit
$250, credit
What is the balance of the account?

Accepted Answer

A) $1,500, debit 
B) $550, credit 
C) $950, debit 
D) $950, credit 
E) $2,050, debit 
A) $1,500, debit 
B) $550, credit 
C) $950, debit 
D) $950, credit 
E) $2,050, debit

Question 12

A trial balance checks the equality of debits and credits.

Accepted Answer

A) True 
 B)False

Question 13

If equipment is bought by paying $200 as a down payment and the remaining $400 in 30 days, total liabilities are increased by $200.

Accepted Answer

A) True 
 B)False

Question 14

To locate an error in a trial balance,

Accepted Answer

A) re-add. 
B) look for the correct location of normal balances. 
C) verify figures transferred from the account to the trial balance. 
D) check footings and balances of the accounts. 
E) do all of these. 
A) re-add. 
B) look for the correct location of normal balances. 
C) verify figures transferred from the account to the trial balance. 
D) check footings and balances of the accounts. 
E) do all of these.

Question 15

The Accounts Payable T account shows the following $1,200, debit
$3,500, debit
$8,240, credit
$100, credit
What is the balance of the account?

Accepted Answer

A) $8,340, credit 
B) $8,340, debit 
C) $4,700, debit 
D) $3,640, debit 
E) $3,640, credit 
A) $8,340, credit 
B) $8,340, debit 
C) $4,700, debit 
D) $3,640, debit 
E) $3,640, credit

Question 16

The time period on the ______________ represents only one date.

Accepted Answer

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

Question 17

The trial balance will not expose which of the following problems?

Accepted Answer

A) Recording half an entry 
B) Leaving out an entire entry 
C) Recording both halves of an entry on the same side 
D) Recording half an entry and leaving out an entire entry 
E) Recording half an entry and recording both halves of an entry on the same side 
A) Recording half an entry 
B) Leaving out an entire entry 
C) Recording both halves of an entry on the same side 
D) Recording half an entry and leaving out an entire entry 
E) Recording half an entry and recording both halves of an entry on the same side

Question 18

Which of the following is correct?

Accepted Answer

A) Debit is the normal balance of the accounts payable account. 
B) Credit is the normal balance of the accounts receivable account. 
C) Debit is the normal balance of the Income from Services account. 
D) Debit is the normal balance of the Drawing account. 
A) Debit is the normal balance of the accounts payable account. 
B) Credit is the normal balance of the accounts receivable account. 
C) Debit is the normal balance of the Income from Services account. 
D) Debit is the normal balance of the Drawing account.

Question 19

An entry to Accounts Payable will be on the left side of the account if there is a decrease and on the right side of the account if there is an increase.

Accepted Answer

A) True 
 B)False

Question 20

Judy Kliskey owns the firm called Mother Nature's. She had the following transactions:
   The transactions were recorded in T accounts as shown below.
         Instructions:
Find seven errors made in recording the transactions, and state the account and amount that should have been debited and the account and amount that should have been credited.

Accepted Answer

The answer of Judy Kliskey owns the firm called Mother...

The order the financial statements are prepared is as follows:

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

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

Classify each of the following items as to whether they would appear on a balance sheet (BS), income statement (IS), or neither (N).

Which of the following is correct concerning the time period reported on financial statements?

Withdrawals of assets from a business by the owners are considered to be expenses.

Which of the following is not true?

Rent Expense is reported on which financial statement?

The accountant recorded income from services as $4,500 when it should have been recorded as $4,050. This is an example of a ________________.

Owner withdrawals are reported on which financial statement?

The Accounts Receivable T account shows the following $250, debit $1,250, debit $300, credit $250, credit What is the balance of the account?

A trial balance checks the equality of debits and credits.

If equipment is bought by paying $200 as a down payment and the remaining $400 in 30 days, total liabilities are increased by $200.

To locate an error in a trial balance,

The Accounts Payable T account shows the following $1,200, debit $3,500, debit $8,240, credit $100, credit What is the balance of the account?

The time period on the ______________ represents only one date.

The trial balance will not expose which of the following problems?

Which of the following is correct?

An entry to Accounts Payable will be on the left side of the account if there is a decrease and on the right side of the account if there is an increase.

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 Including Appendix

Bank Accounts and Cash Funds

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

Filters

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

The order the financial statements are prepared is as follows:

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

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

Classify each of the following items as to whether they would appear on a balance sheet (BS), income statement (IS), or neither (N).

Which of the following is correct concerning the time period reported on financial statements?

Withdrawals of assets from a business by the owners are considered to be expenses.

Which of the following is not true?

Rent Expense is reported on which financial statement?

The accountant recorded income from services as $4,500 when it should have been recorded as $4,050. This is an example of a ________________.

Owner withdrawals are reported on which financial statement?

The Accounts Receivable T account shows the following $250, debit $1,250, debit $300, credit $250, credit What is the balance of the account?

A trial balance checks the equality of debits and credits.

If equipment is bought by paying $200 as a down payment and the remaining $400 in 30 days, total liabilities are increased by $200.

To locate an error in a trial balance,

The Accounts Payable T account shows the following $1,200, debit $3,500, debit $8,240, credit $100, credit What is the balance of the account?

The time period on the ______________ represents only one date.

The trial balance will not expose which of the following problems?

Which of the following is correct?

An entry to Accounts Payable will be on the left side of the account if there is a decrease and on the right side of the account if there is an increase.

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 Including Appendix

Bank Accounts and Cash Funds

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

Filters