Question 1

An account receivable can best be defined as:

Accepted Answer

A)  A payment to the owners.
B)  A sale of goods and services.
C)  A resource owned by the company.
D)  An amount owed by the company.E) B) and D)
F) A) and B)

Question 2

Receiving assets from customers before services are performed results in:

Accepted Answer

A)  Prepaid Assets.
B)  Service Revenue.
C)  Unearned Revenues.
D)  Accounts Receivable.E) B) and D)
F) A) and D)

Question 3

A company pays $5,400 for maintenance in the current period.Record the transaction.

Accepted Answer

The answer of A company pays $5,400 for maintenance in...

Question 4

Posting is the process of:

Accepted Answer

A)  Analyzing the impact of the transaction on the accounting equation.
B)  Obtaining information about external transactions from source documents.
C)  Transferring the debit and credit information from the journal to individual accounts in the general ledger.
D)  Listing all accounts and their balances at a particular date.E) A) and B)
F) C) and D)

Question 5

A company purchases office supplies on account for $7,500.Record the transaction.

Accepted Answer

The answer of A company purchases office supplies on account...

Question 6

The Dividends account increases with a credit and decreases with a debit.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following accounts has a credit balance?

Accepted Answer

A)  Salaries Expense.
B)  Income Tax Payable.
C)  Land.
D)  Prepaid Rent.E) None of the above
F) A) and B)

Question 8

A company incurs employee salaries of $4,200 but does not pay them.Record the transaction.

Accepted Answer

The answer of A company incurs employee salaries of $4,200...

Question 9

On January 1,Brad Inc.sold $30,000 in products to a customer on account.Then,on January 10,Brad collected the cash on that account.What is the impact on Brad's accounting equation from the collection of cash on January 10?

Accepted Answer

A)  No net effect to the accounting equation.
B)  Assets increase and liabilities decrease.
C)  Assets decrease and liabilities decrease.
D)  Assets increase and stockholders' equity increases.E) A) and D)
F) A) and C)

Question 10

Record the following transactions.If an entry is not required,state "No Entry."
(a)Started business by issuing 10,000 shares of common stock for $20,000.
(b)Hired Rebecca as an administrative assistant,promising to pay her $2,000 every two week.
(c)Rented a building for three years at $500 per month and paid six months' rent in advance.
(d)Purchased equipment for $5,400 cash.
(e)Purchased $1,800 of supplies on account.
(f)Provided services to customers for $7,800 cash.
(g)Paid employee salaries,$5,200.
(h)Paid for supplies purchased in item (e).
(i)Paid $800 for current advertising in a local newspaper.
(j)Paid utility bill of $1,300 for the current month.

Accepted Answer

The answer of Record the following transactions.If an entry is...

Question 11

Describe the six steps in the measurement process of external transactions.

Accepted Answer

The six steps include: (1)Use source doc...

Question 12

When a company provides services on account,the accounting equation would be affected as follows:

Accepted Answer

A)  Assets increase.
B)  Revenues increase.
C)  Assets increase and liabilities decrease.
D)  Assets increase and stockholders' equity increases.E) A) and B)
F) A) and C)

Question 13

Which of the following is/are true about a "credit"? I.It is part of the double-entry procedure that keeps the accounting equation in balance.
II) It represents a decrease to assets.
III) It represents an increase to liabilities.
IV) It is on the right side of a T-account.

Accepted Answer

A)  I and II.
B)  IV only.
C)  I,II,and III.
D)  I,II,III,and IV.E) A) and D)
F) All of the above

Question 14

Borrowing cash from the bank is recorded with a debit to cash.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following accounts has a debit balance?

Accepted Answer

A)  Accounts Payable.
B)  Unearned Revenue.
C)  Service Revenue.
D)  Salaries Expense.E) A) and B)
F) A) and C)

Question 16

Which of the following transactions would cause a decrease in both assets and stockholders' equity?

Accepted Answer

A)  Paying insurance premium for the next two years.
B)  Purchasing office equipment on account.
C)  Paying advertising for the current month.
D)  Providing installation services to customers.E) B) and C)
F) A) and B)

Question 17

A trial balance represents the:

Accepted Answer

A)  Source documents used to determine the effects of transactions on the company's accounts.
B)  List of all accounts and their balances at a particular date to ensure that debits equal credits.
C)  Chronological record of all transactions affecting the company.
D)  Process of transferring debit and credit information from the journal to the accounts in the general ledger.E) A) and B)
F) C) and D)

Question 18

For each transaction,there must be at least one debit amount and one credit amount.

Accepted Answer

A) True 
 B)False

Question 19

Incurring an expense for advertising on account would be recorded by:

Accepted Answer

A)  Debiting liabilities.
B)  Crediting assets.
C)  Debiting an expense.
D)  Debiting assets.E) B) and C)
F) A) and D)

Question 20

The owner of an office building should report rent collected in advance as a debit to Cash and a credit to:

Accepted Answer

A)  A liability.
B)  An asset other than Cash.
C)  A revenue.
D)  An owners' equity.E) A) and B)
F) None of the above

Exam 2: The Accounting Information System

A company purchases office supplies on account for $7,500.Record the transaction.

Correct Answer
verified

Incurring an expense for advertising on account would be recorded by:

Correct Answer
verified

When a company provides services on account,the accounting equation would be affected as follows:

Correct Answer
verified

Which of the following transactions would cause a decrease in both assets and stockholders' equity?

Correct Answer
verified

Describe the six steps in the measurement process of external transactions.

Correct Answer
verified
The six steps include: (1)Use source doc...
View Answer

An account receivable can best be defined as:

Correct Answer
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Which of the following is/are true about a "credit"? I.It is part of the double-entry procedure that keeps the accounting equation in balance. II) It represents a decrease to assets. III) It represents an increase to liabilities. IV) It is on the right side of a T-account.

Correct Answer
verified

The owner of an office building should report rent collected in advance as a debit to Cash and a credit to:

Correct Answer
verified

Which of the following accounts has a credit balance?

Correct Answer
verified

Posting is the process of:

Correct Answer
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Correct Answer
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On January 1,Brad Inc.sold $30,000 in products to a customer on account.Then,on January 10,Brad collected the cash on that account.What is the impact on Brad's accounting equation from the collection of cash on January 10?

Correct Answer
verified

Borrowing cash from the bank is recorded with a debit to cash.

Correct Answer
verified

A company incurs employee salaries of $4,200 but does not pay them.Record the transaction.

Correct Answer
verified

A trial balance represents the:

Correct Answer
verified

Which of the following accounts has a debit balance?

Correct Answer
verified

Receiving assets from customers before services are performed results in:

Correct Answer
verified

A company pays $5,400 for maintenance in the current period.Record the transaction.

Correct Answer
verified

For each transaction,there must be at least one debit amount and one credit amount.

Correct Answer
verified

The Dividends account increases with a credit and decreases with a debit.

Correct Answer
verified

Exam 2: The Accounting Information System

A company purchases office supplies on account for $7,500.Record the transaction.

Correct AnswerverifiedShow Answer

Incurring an expense for advertising on account would be recorded by:

Correct AnswerverifiedShow Answer

When a company provides services on account,the accounting equation would be affected as follows:

Correct AnswerverifiedShow Answer

Which of the following transactions would cause a decrease in both assets and stockholders' equity?

Correct AnswerverifiedShow Answer

Describe the six steps in the measurement process of external transactions.

Correct AnswerverifiedThe six steps include: (1)Use source doc...View AnswerShow Answer

An account receivable can best be defined as:

Correct AnswerverifiedShow Answer

Which of the following is/are true about a "credit"? I.It is part of the double-entry procedure that keeps the accounting equation in balance. II) It represents a decrease to assets. III) It represents an increase to liabilities. IV) It is on the right side of a T-account.

Correct AnswerverifiedShow Answer

The owner of an office building should report rent collected in advance as a debit to Cash and a credit to:

Correct AnswerverifiedShow Answer

Which of the following accounts has a credit balance?

Correct AnswerverifiedShow Answer

Posting is the process of:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On January 1,Brad Inc.sold $30,000 in products to a customer on account.Then,on January 10,Brad collected the cash on that account.What is the impact on Brad's accounting equation from the collection of cash on January 10?

Correct AnswerverifiedShow Answer

Borrowing cash from the bank is recorded with a debit to cash.

Correct AnswerverifiedShow Answer

A company incurs employee salaries of $4,200 but does not pay them.Record the transaction.

Correct AnswerverifiedShow Answer

A trial balance represents the:

Correct AnswerverifiedShow Answer

Which of the following accounts has a debit balance?

Correct AnswerverifiedShow Answer

Receiving assets from customers before services are performed results in:

Correct AnswerverifiedShow Answer

A company pays $5,400 for maintenance in the current period.Record the transaction.

Correct AnswerverifiedShow Answer

For each transaction,there must be at least one debit amount and one credit amount.

Correct AnswerverifiedShow Answer

The Dividends account increases with a credit and decreases with a debit.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The six steps include: (1)Use source doc...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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