Question 1

If a company purchases equipment for cash:

Accepted Answer

A) Assets will increase and owners' equity will also increase. 
B) Assets will increase and owners' equity will decrease. 
C) Assets will increase and owners' equity will remain unchanged. 
D) Total assets and owners' equity will remain unchanged. 
A) Assets will increase and owners' equity will also increase. 
B) Assets will increase and owners' equity will decrease. 
C) Assets will increase and owners' equity will remain unchanged. 
D) Total assets and owners' equity will remain unchanged.

Question 2

Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000.The journal entry to record this transaction in the accounting records of the purchaser includes:

Accepted Answer

A) A credit to Land for $40,000. 
B) A debit to Cash for $40,000. 
C) A debit to Land for $170,000. 
D) A debit to Note Payable for $130,000. 
A) A credit to Land for $40,000. 
B) A debit to Cash for $40,000. 
C) A debit to Land for $170,000. 
D) A debit to Note Payable for $130,000.

Question 3

The rules of debit and credit may be summarized as follows:

Accepted Answer

A) Asset accounts are increased by debits,whereas,liabilities and owners' equity are increased by credits. 
B) The balance of a ledger account is increased by debit entries and is decreased by credit entries. 
C) Accounts on the left side of the balance sheet are increased by credits,whereas accounts on the right side of the balance sheet are increased by debits. 
D) The balance of a ledger account is increased by credit entries and is decreased by debit entries. 
A) Asset accounts are increased by debits,whereas,liabilities and owners' equity are increased by credits. 
B) The balance of a ledger account is increased by debit entries and is decreased by credit entries. 
C) Accounts on the left side of the balance sheet are increased by credits,whereas accounts on the right side of the balance sheet are increased by debits. 
D) The balance of a ledger account is increased by credit entries and is decreased by debit entries.

Question 4

When making a general journal entry,there can only be one debit and one credit.

Accepted Answer

A) True 
 B)False

Question 5

The cash account of Grande Home Improvement Store shows the following: a debit on June 1 for $25,000;a credit on June 5 for $10,000,a debit on June 16 for $14,000,and a credit on June 27 for $8,000.What is the balance in the cash account at the end of June?

Accepted Answer

A) $39,000 debit. 
B) $21,000 debit. 
C) $18,000 credit. 
D) $21,000 credit. 
A) $39,000 debit. 
B) $21,000 debit. 
C) $18,000 credit. 
D) $21,000 credit.

Question 6

The collection of accounts receivable is recorded by a:

Accepted Answer

A) Debit to Cash and a debit to Accounts Receivable. 
B) Credit to Cash and a credit to Accounts Receivable. 
C) Debit to Cash and a credit to Accounts Receivable. 
D) Credit to Cash and a debit to Accounts Receivable. 
A) Debit to Cash and a debit to Accounts Receivable. 
B) Credit to Cash and a credit to Accounts Receivable. 
C) Debit to Cash and a credit to Accounts Receivable. 
D) Credit to Cash and a debit to Accounts Receivable.

Question 7

Ceramic Products,Inc.reports these account balances at January 1,2018 (shown in alphabetical order):   On January 5,Ceramic Products collected $12,000 of its accounts receivable and paid $11,000 on its note payable.On January 6,2018,total liabilities are:

Accepted Answer

A) $0. 
B) $30,000. 
C) $56,000. 
D) $41,000. 
A) $0. 
B) $30,000. 
C) $56,000. 
D) $41,000.

Question 8

If the trial balance has a higher debit balance than credit balance,it signifies:

Accepted Answer

A) Assets are more than liabilities. 
B) A profit. 
C) A loss. 
D) An error has been made. 
A) Assets are more than liabilities. 
B) A profit. 
C) A loss. 
D) An error has been made.

Question 9

Transactions are recorded in the general journal in:

Accepted Answer

A) Numerical order. 
B) Chronological order. 
C) Account number order. 
D) Financial statement order. 
A) Numerical order. 
B) Chronological order. 
C) Account number order. 
D) Financial statement order.

Question 10

Which of the following accounts normally has a credit balance?

Accepted Answer

A) Cash 
B) Service revenue 
C) Accounts receivable 
D) Utilities expense 
A) Cash 
B) Service revenue 
C) Accounts receivable 
D) Utilities expense

Question 11

Recording transactions in general journal
Enter the following transactions in the two-column journal of Festive Parties,Inc.Include a brief explanation of the transaction as part of each journal entry.

Accepted Answer

The answer of Recording transactions in general journal
Enter the following...

Question 12

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with:

Accepted Answer

A) A debit of $7,600 to Office Equipment,a debit of $4,200 to Accounts Receivable,and a credit of $3,400 to Accounts Payable. 
B) A debit of $7,600 to Office Equipment,a credit of $4,200 to Cash,and a credit of $3,400 to Accounts Receivable. 
C) A debit of $3,400 to Accounts Receivable,a debit of $4,200 to Cash,and a credit of $7,600 to Office Equipment. 
D) A debit of $7,600 to Office Equipment,a credit of $4,200 to Cash,and a credit of $3,400 to Accounts Payable. 
A) A debit of $7,600 to Office Equipment,a debit of $4,200 to Accounts Receivable,and a credit of $3,400 to Accounts Payable. 
B) A debit of $7,600 to Office Equipment,a credit of $4,200 to Cash,and a credit of $3,400 to Accounts Receivable. 
C) A debit of $3,400 to Accounts Receivable,a debit of $4,200 to Cash,and a credit of $7,600 to Office Equipment. 
D) A debit of $7,600 to Office Equipment,a credit of $4,200 to Cash,and a credit of $3,400 to Accounts Payable.

Question 13

The accounting cycle begins with:

Accepted Answer

A) Posting of journal entries to ledger accounts. 
B) Formation of a business. 
C) Initial recording of business transactions. 
D) Preparation of a trial balance. 
A) Posting of journal entries to ledger accounts. 
B) Formation of a business. 
C) Initial recording of business transactions. 
D) Preparation of a trial balance.

Question 14

Double-entry accounting
The accounting system of most businesses,whether manual or computer-based,is some form of a double-entry system of accounting.
(A. )What is meant by the term "double-entry accounting"?
(B. )Explain how the double-entry system is applied in accounting for the following transaction: Majestic Company purchases a piece of equipment costing $6,000,paying $3,000 cash with the balance of the purchase price to be paid within 60 days.

Accepted Answer

(A. )The phrase "double-entry" refers to

Question 15

The principle that states revenue should be recognized at the time goods are sold or services rendered is called:

Accepted Answer

A) Adequate disclosure. 
B) Conservatism. 
C) Matching. 
D) Revenue realization. 
A) Adequate disclosure. 
B) Conservatism. 
C) Matching. 
D) Revenue realization.

Question 16

Indirect Oil Co.reports these account balances at December 31,2017   On January 2,2018,Indirect Oil collected $25,000 of its accounts receivable and paid $20,000 of its accounts payable.On January 3,2018,total liabilities are:

Accepted Answer

A) $185,000. 
B) $165,000. 
C) $150,000. 
D) $70,000. 
A) $185,000. 
B) $165,000. 
C) $150,000. 
D) $70,000.

Question 17

The ledger is a chronological,day-by-day,record of business transactions.

Accepted Answer

A) True 
 B)False

Question 18

A journal entry to recognize an expense could include each of the following,except:

Accepted Answer

A) A debit to an expense account. 
B) A credit to Accounts Payable. 
C) A debit to a liability account. 
D) A credit to Cash. 
A) A debit to an expense account. 
B) A credit to Accounts Payable. 
C) A debit to a liability account. 
D) A credit to Cash.

Question 19

Given the following list of accounts and their amounts for Hayden's Co.in alphabetical order,prepare a trial balance for December 31,2018 as it should be presented.

Accepted Answer

The answer of Given the following list of accounts and...

Question 20

The matching principle is best demonstrated by:

Accepted Answer

A) Using debits to record decreases in owners' equity and credits to record increases. 
B) The equation Assets = Liabilities + Owners' Equity. 
C) Allocating the cost of an asset to expense over the periods during which benefits are derived from the asset. 
D) Offsetting the cash receipts of the period with the cash payments made during the period. 
A) Using debits to record decreases in owners' equity and credits to record increases. 
B) The equation Assets = Liabilities + Owners' Equity. 
C) Allocating the cost of an asset to expense over the periods during which benefits are derived from the asset. 
D) Offsetting the cash receipts of the period with the cash payments made during the period.

Exam 3: The Accounting Cycle: Capturing Economic Events

If a company purchases equipment for cash:

Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000.The journal entry to record this transaction in the accounting records of the purchaser includes:

The rules of debit and credit may be summarized as follows:

When making a general journal entry,there can only be one debit and one credit.

The cash account of Grande Home Improvement Store shows the following: a debit on June 1 for $25,000;a credit on June 5 for $10,000,a debit on June 16 for $14,000,and a credit on June 27 for $8,000.What is the balance in the cash account at the end of June?

The collection of accounts receivable is recorded by a:

Ceramic Products,Inc.reports these account balances at January 1,2018 (shown in alphabetical order): On January 5,Ceramic Products collected $12,000 of its accounts receivable and paid $11,000 on its note payable.On January 6,2018,total liabilities are:

If the trial balance has a higher debit balance than credit balance,it signifies:

Transactions are recorded in the general journal in:

Which of the following accounts normally has a credit balance?

Recording transactions in general journal Enter the following transactions in the two-column journal of Festive Parties,Inc.Include a brief explanation of the transaction as part of each journal entry.

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with:

The accounting cycle begins with:

The principle that states revenue should be recognized at the time goods are sold or services rendered is called:

Indirect Oil Co.reports these account balances at December 31,2017 On January 2,2018,Indirect Oil collected $25,000 of its accounts receivable and paid $20,000 of its accounts payable.On January 3,2018,total liabilities are:

The ledger is a chronological,day-by-day,record of business transactions.

A journal entry to recognize an expense could include each of the following,except:

Given the following list of accounts and their amounts for Hayden's Co.in alphabetical order,prepare a trial balance for December 31,2018 as it should be presented.

The matching principle is best demonstrated by:

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters