Question 1

In its simplest form an account has only three elements: a title,a left side (called debit),and a right side (called credit).

Accepted Answer

A) True 
 B)False

Question 2

Ledger accounts are updated first,and then transactions are recorded in the journal.

Accepted Answer

A) True 
 B)False

Question 3

Recording transactions directly in T accounts;trial balance
On July 20,Mollie Rose began a new business called MR Printing,which provides typing,duplicating,and printing services.The following six transactions were completed by the business during July.
(a. )Issued to Rose 1,000 shares of capital stock in exchange for her investment of $200,000 cash.
(b. )Purchased land and a small building for $450,000,paying $165,000 cash and signing a note payable for the balance.The land was considered to be worth $240,000 and the building $210,000.
(c. )Purchased office equipment for $30,000 from Quality Interiors,Inc.Paid $17,000 cash and agreed to pay the balance within 60 days.
(d. )Purchased a motorcycle on credit for $3,400 to be used for making deliveries to customers.Mollie agreed to make payment to Spokes,Inc.within 10 days.
(e. )Paid in full the account payable to Spokes,Inc.
(f. )Borrowed $30,000 from a bank and signed a note payable due in six months.
Instructions
(A. )Record the above transactions directly in the T accounts below.Identify each entry in a T account with the letter shown for the transaction.This exercise does not call for the use of a journal.   (B. )Prepare a trial balance at July 31 by completing the form provided.

Accepted Answer

The answer of Recording transactions directly in T accounts;trial balance
On...

Question 4

Effects of a series of transactions on balance sheet items
Fieldstone,Inc.had the following transactions during the month of March,the first month of operations for the business:
* The corporation issued 12,000 shares of capital stock to Sandy Fieldstone in exchange for $120,000 cash.
* Purchased $73,000 of equipment;made an $18,000 down payment and signed a note payable for the balance.
* Made payment of $9,000 on the amount owed for equipment.
(A. )Compute the balance in the Cash account at the end of March.
(B. )What are the total assets of Fieldstone,Inc.at the end of March?
(C. )Compute the balance in the Notes Payable account at the end of March.
(D. )What is the total amount of owners' equity at the end of March?

Accepted Answer

(A. )$93,000
(B. )$1

Question 5

The purpose of accrual accounting is to measure the amounts of cash received and paid during the period.

Accepted Answer

A) True 
 B)False

Question 6

The process of originally recording a business transaction in the accounting records is termed:

Accepted Answer

A) Journalizing. 
B) Footing. 
C) Posting. 
D) Balancing. 
A) Journalizing. 
B) Footing. 
C) Posting. 
D) Balancing.

Question 7

Bruno's Pizza Restaurant makes full payment of $8,300 on an account payable to Stella's Cheese Co.Stella's would record this transaction with a:

Accepted Answer

A) Debit to Accounts Payable for $8,300. 
B) Credit to Cash for $8,300. 
C) Credit to Accounts Receivable for $8,300. 
D) Credit to Accounts Payable for $8,300. 
A) Debit to Accounts Payable for $8,300. 
B) Credit to Cash for $8,300. 
C) Credit to Accounts Receivable for $8,300. 
D) Credit to Accounts Payable for $8,300.

Question 8

The statement "This business produced net income of $520,000" is unclear because it failed to specify:

Accepted Answer

A) The accounting method,that is,accrual or cash basis. 
B) Whether the amount earned is before or after expenses. 
C) The time period. 
D) The amount of cash withdrawn from the business by the owner. 
A) The accounting method,that is,accrual or cash basis. 
B) Whether the amount earned is before or after expenses. 
C) The time period. 
D) The amount of cash withdrawn from the business by the owner.

Question 9

A business that is profitable and liquid will have more accounts with credit balances than with debit balances.

Accepted Answer

A) True 
 B)False

Question 10

Every transaction that affects an income statement account also affects a balance sheet account.

Accepted Answer

A) True 
 B)False

In its simplest form an account has only three elements: a title,a left side (called debit),and a right side (called credit).

Ledger accounts are updated first,and then transactions are recorded in the journal.

The purpose of accrual accounting is to measure the amounts of cash received and paid during the period.

The process of originally recording a business transaction in the accounting records is termed:

Bruno's Pizza Restaurant makes full payment of $8,300 on an account payable to Stella's Cheese Co.Stella's would record this transaction with a:

The statement "This business produced net income of $520,000" is unclear because it failed to specify:

A business that is profitable and liquid will have more accounts with credit balances than with debit balances.

Every transaction that affects an income statement account also affects a balance sheet account.

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

Exam 3: The Accounting Cycle: Capturing Economic Events

In its simplest form an account has only three elements: a title,a left side (called debit),and a right side (called credit).

Ledger accounts are updated first,and then transactions are recorded in the journal.

The purpose of accrual accounting is to measure the amounts of cash received and paid during the period.

The process of originally recording a business transaction in the accounting records is termed:

Bruno's Pizza Restaurant makes full payment of $8,300 on an account payable to Stella's Cheese Co.Stella's would record this transaction with a:

The statement "This business produced net income of $520,000" is unclear because it failed to specify:

A business that is profitable and liquid will have more accounts with credit balances than with debit balances.

Every transaction that affects an income statement account also affects a balance sheet account.

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