Question 1

Revenues have the effect of increasing retained earnings.

Accepted Answer

A) True 
 B)False

Question 2

Liabilities normally carry a _______ balance and are shown in the _________.

Accepted Answer

A)  Debit; Statement of stockholders' equity
B)  Debit; Income statement
C)  Credit; Balance sheet
D)  Debit; Balance SheetE) All of the above
F) B) and C)

Question 3

Purchasing office supplies on account will:

Accepted Answer

A)  Not change assets.
B)  Increase assets and decrease liabilities.
C)  Increase assets and increase liabilities.
D)  Increase assets and increase stockholders' equity.E) A) and D)
F) A) and C)

Question 4

Receiving cash from an account receivable:

Accepted Answer

A)  Increases a revenue and decreases an asset.
B)  Decreases a liability and increases an asset.
C)  Increases an asset and increases a revenue.
D)  Increases one asset and decreases another asset.E) A) and B)
F) A) and C)

Question 5

Consider the following transactions for Mittel Corporation:
a.Sell common stock for $10,000.
b.Purchase equipment for $11,500 cash.
c.Pay employee salaries of $3,700.
d.Provides services to customers for $6,200 cash.
1.Post these transactions to the Cash T-account.Assume the balance of Cash before these transactions is $4,200.
2.Calculate the ending balance of the Cash account.

Accepted Answer

The answer of Consider the following transactions for Mittel Corporation:
a.Sell...

Question 6

Selling common stock for cash causes assets to increase and stockholders' equity to decrease.

Accepted Answer

A) True 
 B)False

Question 7

A company receives $6,500 cash in advance from customers for services to be provided next year.Record the transaction.

Accepted Answer

The answer of A company receives $6,500 cash in advance...

Question 8

Liability accounts increase with a credit and decrease with a debit.

Accepted Answer

A) True 
 B)False

Question 9

Purchasing office equipment on account has what impact on the accounting equation?

Accepted Answer

A)  Stockholders' equity decreases and assets increase.
B)  Liabilities increase and assets increase.
C)  Assets decrease and liabilities decrease.
D)  Assets increase and stockholders' equity increases.E) None of the above
F) A) and D)

Question 10

For each transaction,the total debit amounts must equal the total credit amounts.

Accepted Answer

A) True 
 B)False

Question 11

Paying for one year of rent in advance does not affect the accounting equation.

Accepted Answer

A) True 
 B)False

Exam 2: The Accounting Information System

Paying for one year of rent in advance does not affect the accounting equation.

Correct Answer
verified

Revenues have the effect of increasing retained earnings.

Correct Answer
verified

Purchasing office equipment on account has what impact on the accounting equation?

Correct Answer
verified

Selling common stock for cash causes assets to increase and stockholders' equity to decrease.

Correct Answer
verified

Correct Answer
verified

Liabilities normally carry a _ balance and are shown in the ___.

Correct Answer
verified

A company receives $6,500 cash in advance from customers for services to be provided next year.Record the transaction.

Correct Answer
verified

Receiving cash from an account receivable:

Correct Answer
verified

Liability accounts increase with a credit and decrease with a debit.

Correct Answer
verified

Purchasing office supplies on account will:

Correct Answer
verified

For each transaction,the total debit amounts must equal the total credit amounts.

Correct Answer
verified

Exam 2: The Accounting Information System

Paying for one year of rent in advance does not affect the accounting equation.

Correct AnswerverifiedShow Answer

Revenues have the effect of increasing retained earnings.

Correct AnswerverifiedShow Answer

Purchasing office equipment on account has what impact on the accounting equation?

Correct AnswerverifiedShow Answer

Selling common stock for cash causes assets to increase and stockholders' equity to decrease.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Liabilities normally carry a _______ balance and are shown in the _________.

Correct AnswerverifiedShow Answer

A company receives $6,500 cash in advance from customers for services to be provided next year.Record the transaction.

Correct AnswerverifiedShow Answer

Receiving cash from an account receivable:

Correct AnswerverifiedShow Answer

Liability accounts increase with a credit and decrease with a debit.

Correct AnswerverifiedShow Answer

Purchasing office supplies on account will:

Correct AnswerverifiedShow Answer

For each transaction,the total debit amounts must equal the total credit amounts.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Liabilities normally carry a _ balance and are shown in the ___.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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