Question 1

Explain the recording and posting processes.

Accepted Answer

Information from business transactions a

Question 2

A law firm billed a client $1,800 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

Accepted Answer

A)  Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800. 
B)  Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800. 
C)  Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800. 
D)  Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800. 
E)  Debit Cash, $1,800; credit Accounts Receivable, $1,800. 
A)  Debit Accounts Receivable, $1,800; credit Unearned Legal Fees Revenue, $1,800. 
B)  Debit Cash, $1,800; credit Unearned Legal Fees Revenue, $1,800. 
C)  Debit Legal Fees Revenue, $1,800; credit Accounts Receivable, $1,800. 
D)  Debit Accounts Receivable, $1,800; credit Legal Fees Revenue, $1,800. 
E)  Debit Cash, $1,800; credit Accounts Receivable, $1,800.

Question 3

You increase the Service Revenue account on the ________ side of its account.

Accepted Answer

The answer of You increase the Service Revenue account on...

Question 4

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 5

Geoff Parker, the sole stockholder of Parker Tax Services, started the business by investing $10,000 cash and a building worth $20,000. Identify the general journal entry below that Parker Tax Services will make to record the transaction.

Accepted Answer

A)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 10,000 & \
\hline \text { Common Stock } & & 30,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Common Stock } & 30,000 & \
\hline \text { Cash } & & 10,00 \
\hline \text { Building } & & 20,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|l|}
\hline \text { Cash } & 10,000 & \
\hline \text { Building } & 20,000 & \
\hline \text { Common Stock } & & 30,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Notes Payable } & 30,000 & \
\hline \text { Common Stock } & & 30,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 30,000 & \
\hline \text { Common Stock } & & 30,000 \
\hline
\end{array}$ 
A)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 10,000 & \
\hline \text { Common Stock } & & 30,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Common Stock } & 30,000 & \
\hline \text { Cash } & & 10,00 \
\hline \text { Building } & & 20,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|l|}
\hline \text { Cash } & 10,000 & \
\hline \text { Building } & 20,000 & \
\hline \text { Common Stock } & & 30,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|r|}
\hline \text { Notes Payable } & 30,000 & \
\hline \text { Common Stock } & & 30,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Dividends } & 30,000 & \
\hline \text { Common Stock } & & 30,000 \
\hline
\end{array}$

Question 6

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is known as a(n):

Accepted Answer

A)  Journal. 
B)  Posting. 
C)  Trial balance. 
D)  Account. 
E)  Chart of accounts. 
A)  Journal. 
B)  Posting. 
C)  Trial balance. 
D)  Account. 
E)  Chart of accounts.

Question 7

In a double-entry accounting system, total debits must equal total credits for all entries, and total debit account balances in the ledger must equal total credit account balances.

Accepted Answer

A) True 
 B)False

Question 8

Langley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct.

Accepted Answer

A)  Appleton finances a smaller percentage of its assets with liabilities as compared to Langley. 
B)  Appleton's financial leverage is less than Langley's financial leverage. 
C)  Appleton's financial leverage is greater than Langley's financial leverage. 
D)  Langley has a higher risk from its financial leverage. 
E)  Higher financial leverage involves lower risk. 
A)  Appleton finances a smaller percentage of its assets with liabilities as compared to Langley. 
B)  Appleton's financial leverage is less than Langley's financial leverage. 
C)  Appleton's financial leverage is greater than Langley's financial leverage. 
D)  Langley has a higher risk from its financial leverage. 
E)  Higher financial leverage involves lower risk.

Question 9

Jennings Co. has total assets of $425 million. Its total liabilities are $110.5 million. Its equity is $314.5 million. Calculate the debt ratio.

Accepted Answer

A)  38%. 
B)  13%. 
C)  34%. 
D)  26%. 
E)  14%. 
A)  38%. 
B)  13%. 
C)  34%. 
D)  26%. 
E)  14%.

Question 10

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. Andrea invested $13,500 cash in the business in exchange for common stock.
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 cash account at the end of January would be:

Accepted Answer

A)  $41,450. 
B)  $12,225. 
C)  $18,700. 
D)  $15,250. 
E)  $13,500. 
A)  $41,450. 
B)  $12,225. 
C)  $18,700. 
D)  $15,250. 
E)  $13,500.

Question 11

Jeff Jackson opened Jackson's Repairs on March 1 of the current year. During March, the following transactions occurred: 1. Jackson invested $25,000 cash in the business in exchange for common stock.
2) Jackson contributed $100,000 of equipment to the business.
3) The company paid $2,000 cash to rent office space for the month of March.
4) The company received $16,000 cash for repair services provided during March.
5) The company paid $6,200 for salaries for the month of March.
6) The company provided $3,000 of services to customers on account.
7) The company paid cash of $500 for utilities for the month of March.
8) The company received $3,100 cash in advance from a customer for repair services to be provided in April.
9) The company paid $5,000 in cash dividends.
Based on this information, net income for March would be:

Accepted Answer

A)  $10,300. 
B)  $13,400. 
C)  $5,300. 
D)  $8,400. 
E)  $13,500. 
A)  $10,300. 
B)  $13,400. 
C)  $5,300. 
D)  $8,400. 
E)  $13,500.

Explain the recording and posting processes.

A law firm billed a client $1,800 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

You increase the Service Revenue account on the ________ side of its account.

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Geoff Parker, the sole stockholder of Parker Tax Services, started the business by investing $10,000 cash and a building worth $20,000. Identify the general journal entry below that Parker Tax Services will make to record the transaction.

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is known as a(n):

In a double-entry accounting system, total debits must equal total credits for all entries, and total debit account balances in the ledger must equal total credit account balances.

Langley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct.

Jennings Co. has total assets of $425 million. Its total liabilities are $110.5 million. Its equity is $314.5 million. Calculate the debt ratio.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

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Exam 16: Accounting for Business Transactions

Explain the recording and posting processes.

A law firm billed a client $1,800 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?

You increase the Service Revenue account on the ________ side of its account.

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Geoff Parker, the sole stockholder of Parker Tax Services, started the business by investing $10,000 cash and a building worth $20,000. Identify the general journal entry below that Parker Tax Services will make to record the transaction.

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is known as a(n):

In a double-entry accounting system, total debits must equal total credits for all entries, and total debit account balances in the ledger must equal total credit account balances.

Langley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct.

Jennings Co. has total assets of $425 million. Its total liabilities are $110.5 million. Its equity is $314.5 million. Calculate the debt ratio.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Filters