Question 1

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Income Taxes Payable

Accepted Answer

A) Balance sheet account 
B) Income statement account

Question 2

The principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

Accepted Answer

The answer of The principle says that, with a few...

Question 3

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit.
-Bonds Payable

Accepted Answer

A) Debit 
B) Credit

Question 4

A credit means that:

Accepted Answer

A)  the event has an effect on the right side of an account. 
B)  the event is unfavorable. 
C)  the event is favorable. 
D)  the event always decreases the account.

Question 5

A trial balance is aan:

Accepted Answer

A)  optional financial statement used only by accountants. 
B)  device used to prove the equality of debits and credits in the general ledger. 
C)  list of accounts and their balances taken from the chart of accounts. 
D)  financial statement which can be used in place of a balance sheet.

Question 6

An entry made to the right side of an account is called a:

Accepted Answer

A)  Debit. 
B)  Credit. 
C)  Double-entry system. 
D)  Journal entry.

Question 7

During May, Aniston, Inc. purchased office supplies for cash. The supplies will be used in June. What effect does this purchase transaction have on the accounting equation?

Accepted Answer

A)  Assets increase and stockholders' equity decreases. 
B)  Assets increase and liabilities increase. 
C)  Assets decrease and liabilities decrease. 
D)  There is no effect on the accounting equation as one asset account increases while another asset account decreases.

Question 8

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit.
-Wages and Salaries Expense

Accepted Answer

A) Debit 
B) Credit

Question 9

The Holmes Company purchased a building for $75,000 in cash. What is the effect on current assets?

Accepted Answer

A)  Increase in current assets 
B)  Decrease in current assets 
C)  No effect on current assets 
D)  Unable to determine

Question 10

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company hires a new secretary.

Accepted Answer

A) Internal event 
B) External event 
C) Not recorded

Question 11

Prepare the journal entry to record each of the following independent transactions. Use the number of the transaction in place of a date for identification purposes.
1. Services provided for cash of $7,050.
2. Purchase of equipment for cash of $2,240.
3. Services provided on account of $530.
4. Purchases of supplies on account for $365.

Accepted Answer

The answer of Prepare the journal entry to record each...

Question 12

Debit and credit would best be described as terms.

Accepted Answer

A)  abnormal 
B)  increasing/decreasing 
C)  quantitative 
D)  locational

Question 13

A trial balance is the listing of each account and its balance at a specific point in time.

Accepted Answer

A) True 
 B)False

Question 14

A trial balance is a financial statement.

Accepted Answer

A) True 
 B)False

Question 15

Double-entry accounting is best characterized as:

Accepted Answer

A)  the number of debit entries posted to the ledger equals the number of credit entries. 
B)  the number of ledger accounts with debit balances is equal to the number with credit balances. 
C)  every transaction affects both an asset account and either a liability account or a stockholders' equity account. 
D)  the total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries.

Question 16

Wolfe Inc.
Wolfe Inc. reports these account balances at January 1, 2015:
 
-See the account balances for Wolfe Inc. On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable. In Wolfe's
Trial balance prepared on January 31, 2015, the total of the credit column is:

Accepted Answer

A)  $297,000 
B)  $287,000 
C)  $286,000 
D)  $275,000

Question 17

Refer to the Terry Company transactions.Required: Indicate the economic effects of each transaction above on the accounting equation. Use the following format for your answers. Show the dollar amounts in the appropriate columns and use a "+" plus sign to indicate an increase and a "-" minus sign to indicate a decrease.

Accepted Answer

The answer of Refer to the Terry Company transactions.Required: Indicate...

Question 18

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded.
-The company takes a count of the raw materials inventory and finds that an adjustment is needed.

Accepted Answer

A) Internal event 
B) External event 
C) Not recorded

Question 19

The purchase of office equipment on credit has what effect on the accounting equation?

Accepted Answer

A)  Assets decrease and stockholders' equity decreases 
B)  Liabilities increase and stockholders' equity decreases 
C)  Assets increase and liabilities increase 
D)  Assets decrease and liabilities decrease

Question 20

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.

Accepted Answer

A) True 
 B)False

Exam 3: Processing Accounting Information

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Income Taxes Payable

The principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Bonds Payable

A credit means that:

A trial balance is aan:

An entry made to the right side of an account is called a:

During May, Aniston, Inc. purchased office supplies for cash. The supplies will be used in June. What effect does this purchase transaction have on the accounting equation?

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Wages and Salaries Expense

The Holmes Company purchased a building for $75,000 in cash. What is the effect on current assets?

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new secretary.

Debit and credit would best be described as terms.

A trial balance is the listing of each account and its balance at a specific point in time.

A trial balance is a financial statement.

Double-entry accounting is best characterized as:

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company takes a count of the raw materials inventory and finds that an adjustment is needed.

The purchase of office equipment on credit has what effect on the accounting equation?

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.