Question 1

What effect will the following entry have on Retained Earnings?

Accepted Answer

A) Retained Earnings will increase by $2,550. 
B) Retained Earnings will decrease by $2,550. 
C) Retained Earnings will remain unchanged. 
D) Retained Earnings will be transferred to the income statement. 
A) Retained Earnings will increase by $2,550. 
B) Retained Earnings will decrease by $2,550. 
C) Retained Earnings will remain unchanged. 
D) Retained Earnings will be transferred to the income statement.

Question 2

A transaction recorded as a debit to Cash and a credit to Accounts Receivable.

Accepted Answer

(N) (N) (N) (N) (N) (N) (I)
Ex

Question 3

A debit entry

Accepted Answer

A) increases assets. 
B) increases expenses. 
C) decreases liabilities. 
D) all of these. 
A) increases assets. 
B) increases expenses. 
C) decreases liabilities. 
D) all of these.

Question 4

The following is a random list of the accounts of Florida Company:   If these accounts were presented in a trial balance, the total of the credit column would be equal to:

Accepted Answer

A) $56,100. 
B) $58,100. 
C) $57,100. 
D) None of these 
A) $56,100. 
B) $58,100. 
C) $57,100. 
D) None of these

Question 5

Cornelius Company purchased supplies on account. What account is credited?

Accepted Answer

Accounts Payable
Exp

Question 6

An adjusting entry recorded as a debit to Unearned Service Revenue and a credit to Service Revenue.

Accepted Answer

(N) (D) (I) (I) (N) (I) (N)
Ex

Question 7

Magnum Corporation earned net income of $32,000 and paid cash dividends of $8,500 to its stockholders. Which of the following choices reflects the effect of closing entries on Magnum's financial statements?

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 8

A transaction recorded as a debit to Dividends and a credit to Cash.

Accepted Answer

(D) (N) (D) (N) (N) (N) (D)
Ex

Question 9

The account balances alphabetically listed below are for Furst Company as of December 31, 2013. These balances include the effect of adjusting entries.   Required:
a) Prepare an adjusted trial balance for Furst Company.
b) Prepare journal entries for Furst's closing entries for the year.
c) Prepare an income statement for Furst Company for 2013.
d) What was the balance in Retained Earnings after the closing entries had been made and posted?

Accepted Answer

a) @#IMG-DLM& b) Closing entri

Question 10

Consider each of the following general journal entries independently. In the space provided, indicate whether the journal increases the ratio (I), decreases the ratio (D), or does not change the ratio (N/C). Assume that each ratio is greater than 1.0 before the entry is made.

Accepted Answer

The answer of Consider each of the following general journal...

Question 11

Bates Corporation recorded the adjusting entry to recognize $4,000 of revenue previously recorded as unearned. Which of the following shows the proper entry using T-accounts?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 12

The return on assets ratio for Garber is:

Accepted Answer

A) 5%. 
B) 10%. 
C) 20%. 
D) 50%. 
A) 5%. 
B) 10%. 
C) 20%. 
D) 50%.

Question 13

What is the purpose of a trial balance?

Accepted Answer

To ensure that debits and cred

Question 14

Jimenez Company purchased a computer for $3,000 on January 1, 2013. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjusting entry would Jimenez record on December 31, 2013 to recognize expense related to use of the computer?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 15

King Company provided repair service of $2,800 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 16

Select the true statement (note: an answer may be true even if it does not identify all accounts that appear on a particular statement).

Accepted Answer

A) Account numbers 1, 3, and 7 will appear on the balance sheet. 
B) Account numbers 2, 4, and 5 will appear on the income statement. 
C) Account numbers 2, 5, and 8 will appear on the statement of cash flows. 
D) Account numbers 4, 5, and 6 will appear on the statement of changes in equity. 
A) Account numbers 1, 3, and 7 will appear on the balance sheet. 
B) Account numbers 2, 4, and 5 will appear on the income statement. 
C) Account numbers 2, 5, and 8 will appear on the statement of cash flows. 
D) Account numbers 4, 5, and 6 will appear on the statement of changes in equity.

What effect will the following entry have on Retained Earnings?

A transaction recorded as a debit to Cash and a credit to Accounts Receivable.

A debit entry

The following is a random list of the accounts of Florida Company: If these accounts were presented in a trial balance, the total of the credit column would be equal to:

Cornelius Company purchased supplies on account. What account is credited?

An adjusting entry recorded as a debit to Unearned Service Revenue and a credit to Service Revenue.

Magnum Corporation earned net income of $32,000 and paid cash dividends of $8,500 to its stockholders. Which of the following choices reflects the effect of closing entries on Magnum's financial statements?

A transaction recorded as a debit to Dividends and a credit to Cash.

Consider each of the following general journal entries independently. In the space provided, indicate whether the journal increases the ratio (I), decreases the ratio (D), or does not change the ratio (N/C). Assume that each ratio is greater than 1.0 before the entry is made.

Bates Corporation recorded the adjusting entry to recognize $4,000 of revenue previously recorded as unearned. Which of the following shows the proper entry using T-accounts?

The return on assets ratio for Garber is:

What is the purpose of a trial balance?

Jimenez Company purchased a computer for $3,000 on January 1, 2013. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjusting entry would Jimenez record on December 31, 2013 to recognize expense related to use of the computer?

King Company provided repair service of $2,800 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction?

Select the true statement (note: an answer may be true even if it does not identify all accounts that appear on a particular statement).

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships, Partnerships, and Corporations

Statement of Cash Flows

Financial Statement Analysis Available Online in the Connect Library

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Exam 3: The Double-Entry Accounting System

What effect will the following entry have on Retained Earnings?

A transaction recorded as a debit to Cash and a credit to Accounts Receivable.

A debit entry

The following is a random list of the accounts of Florida Company: If these accounts were presented in a trial balance, the total of the credit column would be equal to:

Cornelius Company purchased supplies on account. What account is credited?

An adjusting entry recorded as a debit to Unearned Service Revenue and a credit to Service Revenue.

Magnum Corporation earned net income of $32,000 and paid cash dividends of $8,500 to its stockholders. Which of the following choices reflects the effect of closing entries on Magnum's financial statements?

A transaction recorded as a debit to Dividends and a credit to Cash.

Consider each of the following general journal entries independently. In the space provided, indicate whether the journal increases the ratio (I), decreases the ratio (D), or does not change the ratio (N/C). Assume that each ratio is greater than 1.0 before the entry is made.

Bates Corporation recorded the adjusting entry to recognize $4,000 of revenue previously recorded as unearned. Which of the following shows the proper entry using T-accounts?

The return on assets ratio for Garber is:

What is the purpose of a trial balance?

Jimenez Company purchased a computer for $3,000 on January 1, 2013. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjusting entry would Jimenez record on December 31, 2013 to recognize expense related to use of the computer?

King Company provided repair service of $2,800 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction?

Select the true statement (note: an answer may be true even if it does not identify all accounts that appear on a particular statement).

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships, Partnerships, and Corporations

Statement of Cash Flows

Financial Statement Analysis Available Online in the Connect Library

Filters