Question 1

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)  Always increases liability accounts. 
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)  Always increases liability accounts.

Question 2

If cash was incorrectly debited for $100 instead of correctly debiting accounts receivable for $100, assuming no other errors, the trial balance will balance.

Accepted Answer

A) True 
 B)False

Question 3

A business's source documents:

Accepted Answer

A)  Include the ledger. 
B)  Provide objective evidence that a transaction has taken place. 
C)  Must be in electronic form. 
D)  Are records of all increases and decreases in specific asset. 
E)  Include the chart of accounts. 
A)  Include the ledger. 
B)  Provide objective evidence that a transaction has taken place. 
C)  Must be in electronic form. 
D)  Are records of all increases and decreases in specific asset. 
E)  Include the chart of accounts.

Question 4

The third step in the analyzing and recording process is to record each transaction chronologically in a________.

Accepted Answer

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

Question 5

Web Consulting received $3,000 from a customer for services provided. The 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 6

On May 31, the Cash account of Tesla 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. 
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.

Question 7

The detail of individual revenue and expense accounts is reported on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 8

At a given point in time, a trial balance is a list of all ledger accounts and their balances.

Accepted Answer

A) True 
 B)False

Question 9

Victor Services had the following assets and liabilities at the beginning and end of the current year:

$\begin{array} { l l l } 
& \text { Assets } & \text { Liabilities } \
\text { Beginning of the year } & \$ 114,000 & \$ 68,000 \
\text { End of the year } & 135,000 & 73,000
\end{array}$

If $12,000 of common stock was issued during the year, but no dividends were paid during the year, what was the amount of net income earned by Victor Services?

Accepted Answer

Beginning equity = $114,000 - $68,000 =

Question 10

Select the account below that normally has a credit balance.

Accepted Answer

A)  Cash. 
B)  Office Equipment. 
C)  Wages Payable. 
D)  Dividends. 
E)  Sales Salaries Expense. 
A)  Cash. 
B)  Office Equipment. 
C)  Wages Payable. 
D)  Dividends. 
E)  Sales Salaries Expense.

Question 11

The balance sheet reports the financial position of a company at a point in time.

Accepted Answer

A) True 
 B)False

Question 12

The following trial balance is prepared from the general ledger of HG's Auto Maintenance.
   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 a stockholder 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 as of October 31.

Accepted Answer

HG'S AUTO MAINTENANCE
Trial Balance
Octo

Question 13

Transactions are recorded first in the ledger and then transferred to the journal.

Accepted Answer

A) True 
 B)False

Question 14

The general journal is a collection of all accounts and their balances.

Accepted Answer

A) True 
 B)False

Question 15

An income statement reports revenues earned minus expenses incurred over a period of time.

Accepted Answer

A) True 
 B)False

Question 16

Explain the debt ratio and its use in analyzing a company's financial condition.

Accepted Answer

The debt ratio is calculated by dividing

Question 17

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

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Rental Revenue } & 100 \
\hline \text { Instruction Revenue } & 150 & \
\hline \text { Cash } & & 250 \
\hline
\end{array}$$ 
B)  $\begin{array}{|l|l|l|}
\hline \text { Accounts Payable } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 250 & \
\hline \text { Rental Reverue } & & 100 \
\hline \text { Irstruction Reverue } & & 150\\hline 
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Rental Reverue } & 100 \
\hline \text { Irstruction Reverue } & 150 & \
\hline \text { Accourits Receivable } & & 250\\hline 
\end{array}$$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Unearned Revenue } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Rental Revenue } & 100 \
\hline \text { Instruction Revenue } & 150 & \
\hline \text { Cash } & & 250 \
\hline
\end{array}$$ 
B)  $\begin{array}{|l|l|l|}
\hline \text { Accounts Payable } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 250 & \
\hline \text { Rental Reverue } & & 100 \
\hline \text { Irstruction Reverue } & & 150\\hline 
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Rental Reverue } & 100 \
\hline \text { Irstruction Reverue } & 150 & \
\hline \text { Accourits Receivable } & & 250\\hline 
\end{array}$$ 
E)  $\begin{array}{|l|r|r|}
\hline \text { Unearned Revenue } & 250 & \
\hline \text { Rental Revenue } & & 100 \
\hline \text { Instruction Revenue } & & 150 \
\hline
\end{array}$

Question 18

A law firm collected $1,800 in advance for work to be performed in three months. 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 19

A company provided $12,000 of consulting services on account. The customer promises payment in 30 days. Identify the journal entry below that properly records this transaction.

Accepted Answer

A)  $\begin{array}{|l|r|r|}
\hline \text { Accounts Payable } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 12,000 & \
\hline \text { Consulting Services Revenue } & & 12,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Consulting Services Revenue } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|l|}
\hline \text { Accounts Payable } & 12,000 \
\hline \text { Consulting Services Revenue } && 12,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|l|}
\hline \text { Accounts Receivable } & 12,000 & \
\hline \text { Consulting Services Revenue } & & 12,000 \
\hline
\end{array}$ 
A)  $\begin{array}{|l|r|r|}
\hline \text { Accounts Payable } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$ 
B)  $\begin{array}{|l|r|r|}
\hline \text { Cash } & 12,000 & \
\hline \text { Consulting Services Revenue } & & 12,000 \
\hline
\end{array}$ 
C)  $\begin{array}{|l|r|r|}
\hline \text { Consulting Services Revenue } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$ 
D)  $\begin{array}{|l|r|l|}
\hline \text { Accounts Payable } & 12,000 \
\hline \text { Consulting Services Revenue } && 12,000 \
\hline
\end{array}$ 
E)  $\begin{array}{|l|r|l|}
\hline \text { Accounts Receivable } & 12,000 & \
\hline \text { Consulting Services Revenue } & & 12,000 \
\hline
\end{array}$

Question 20

JBL Company sends a $2,500 bill to a customer for services it provided during the month. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of JBL Company sends a $2,500 bill to...

A debit:

If cash was incorrectly debited for $100 instead of correctly debiting accounts receivable for $100, assuming no other errors, the trial balance will balance.

A business's source documents:

The third step in the analyzing and recording process is to record each transaction chronologically in a________.

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

On May 31, the Cash account of Tesla 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?

The detail of individual revenue and expense accounts is reported on the balance sheet.

At a given point in time, a trial balance is a list of all ledger accounts and their balances.

Select the account below that normally has a credit balance.

The balance sheet reports the financial position of a company at a point in time.

Transactions are recorded first in the ledger and then transferred to the journal.

The general journal is a collection of all accounts and their balances.

An income statement reports revenues earned minus expenses incurred over a period of time.

Explain the debt ratio and its use in analyzing a company's financial condition.

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

A law firm collected $1,800 in advance for work to be performed in three months. Which of the following general journal entries will the firm make to record this transaction?

A company provided $12,000 of consulting services on account. The customer promises payment in 30 days. Identify the journal entry below that properly records this transaction.

JBL Company sends a $2,500 bill to a customer for services it provided during the month. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

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

Exam 16: Accounting for Business Transactions

A debit:

If cash was incorrectly debited for $100 instead of correctly debiting accounts receivable for $100, assuming no other errors, the trial balance will balance.

A business's source documents:

The third step in the analyzing and recording process is to record each transaction chronologically in a________.

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

On May 31, the Cash account of Tesla 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?

The detail of individual revenue and expense accounts is reported on the balance sheet.

At a given point in time, a trial balance is a list of all ledger accounts and their balances.

Select the account below that normally has a credit balance.

The balance sheet reports the financial position of a company at a point in time.

Transactions are recorded first in the ledger and then transferred to the journal.

The general journal is a collection of all accounts and their balances.

An income statement reports revenues earned minus expenses incurred over a period of time.

Explain the debt ratio and its use in analyzing a company's financial condition.

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

A law firm collected $1,800 in advance for work to be performed in three months. Which of the following general journal entries will the firm make to record this transaction?

A company provided $12,000 of consulting services on account. The customer promises payment in 30 days. Identify the journal entry below that properly records this transaction.

JBL Company sends a $2,500 bill to a customer for services it provided during the month. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

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