Question 1

Which of the accounts are decreased on the debit side and increased on the credit side?

Accepted Answer

A)  Liabilities,stockholders' equity,and revenues.
B)  Dividends,liabilities,and assets.
C)  Expenses,dividends,and stockholders' equity.
D)  Assets,dividends,and expenses.E) A) and B)
F) A) and C)

Question 2

Borrowing cash from the bank causes assets to increase and liabilities to increase.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Internal transactions are events that affect the financial position of the company but do not include an exchange with a separate economic entity.Examples are using supplies on hand and earning revenues after having received cash in advance from a customer.

Accepted Answer

A) True 
 B)False

Question 5

The following amounts are reported in the ledger of Mariah Company:
What is the balance in the Common Stock account?

Accepted Answer

A)  $44,000.
B)  $32,000.
C)  $48,000.
D)  $42,000.E) A) and B)
F) A) and C)

Question 6

External events include all of the following except:

Accepted Answer

A)  Paying employees' salaries.
B)  Purchasing equipment.
C)  Using office supplies.
D)  Collecting an account receivable.E) A) and C)
F) A) and D)

Question 7

Assume that cash is paid for rent to cover the next year.The appropriate debit and credit are:

Accepted Answer

A)  Debit Rent Expense,credit Cash.
B)  Debit Prepaid Rent,credit Rent Expense.
C)  Debit Prepaid Rent,credit Cash.
D)  Debit Cash,credit Prepaid Rent.E) A) and D)
F) A) and C)

Question 8

A company provides services to customers for $2,400 cash.Record the transaction.

Accepted Answer

The answer of A company provides services to customers for...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Tyler Incorporated receives $150,000 from investors in exchange for shares of its common stock.Tyler Incorporated records this transaction with a:

Accepted Answer

A)  Debit to Investments.
B)  Credit to Retained Earnings.
C)  Credit to Common Stock.
D)  Credit to Service Revenue.E) B) and D)
F) None of the above

Question 12

Providing services to customers on account would affect the balances reported in which financial statement(s) ?

Accepted Answer

A)  Income statement
B)  Statement of stockholders' equity
C)  Balance sheet
D)  All of the financial statements would be affectedE) B) and D)
F) B) and C)

Question 13

A trial balance is a list of all accounts and their balances at a particular date,showing that assets equal liabilities.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following transactions causes a decrease in stockholders' equity?

Accepted Answer

A)  Pay dividends to stockholders.
B)  Obtain cash by borrowing from a local bank.
C)  Provide services to customers on account.
D)  Purchase office equipment for cash.E) A) and D)
F) B) and C)

Question 15

A company received a utility bill of $600 but did not pay it.Indicate the amount of increases and decreases in the accounting equation.

Accepted Answer

The answer of A company received a utility bill of...

Question 16

Record the following transactions for the Stroud Music Store:
(a)Provide music lessons to students for $12,000 on account.
(b)Purchase music supplies on account,$1,500.
(c)Pay rent for the current month,$2,000.
(d)Receive $10,000 cash from students in (a)above.

Accepted Answer

(a)
Accounts Receivable 12,000...

Question 17

After posting transactions to the general ledger accounts,the sum of the accounts with debit balances should equal the sum of the accounts with credit balances.

Accepted Answer

A) True 
 B)False

Question 18

Investments by stockholders have what effect on the accounting equation?

Accepted Answer

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

Question 19

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Resources owned by a company.

Accepted Answer

A)  Assets
B)  Debit
C)  Journal entry
D)  Liabilities
E)  RevenuesF) ExpensesG) CreditH) General ledgerI) Trial balanceJ) DividendsK) B) and H)
L) B) and F)

Question 20

The two components of stockholders' equity are Debits and Credits.

Accepted Answer

A) True 
 B)False

Exam 2: The Accounting Cycle: During the Period

A company provides services to customers for $2,400 cash.Record the transaction.

Correct AnswerverifiedShow Answer

External events include all of the following except:

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Which of the following transactions causes a decrease in stockholders' equity?

Correct AnswerverifiedShow Answer

A trial balance is a list of all accounts and their balances at a particular date,showing that assets equal liabilities.

Correct AnswerverifiedShow Answer

Tyler Incorporated receives $150,000 from investors in exchange for shares of its common stock.Tyler Incorporated records this transaction with a:

Correct AnswerverifiedShow Answer

Borrowing cash from the bank causes assets to increase and liabilities to increase.

Correct AnswerverifiedShow Answer

The following amounts are reported in the ledger of Mariah Company: What is the balance in the Common Stock account?

Correct AnswerverifiedShow Answer

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Resources owned by a company.

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Which of the accounts are decreased on the debit side and increased on the credit side?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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Record the following transactions for the Stroud Music Store: (a)Provide music lessons to students for $12,000 on account. (b)Purchase music supplies on account,$1,500. (c)Pay rent for the current month,$2,000. (d)Receive $10,000 cash from students in (a)above.

Correct Answerverified(a)Accounts Receivable 12,000...View AnswerShow Answer

Internal transactions are events that affect the financial position of the company but do not include an exchange with a separate economic entity.Examples are using supplies on hand and earning revenues after having received cash in advance from a customer.

Correct AnswerverifiedShow Answer

Providing services to customers on account would affect the balances reported in which financial statement(s) ?

Correct AnswerverifiedShow Answer

After posting transactions to the general ledger accounts,the sum of the accounts with debit balances should equal the sum of the accounts with credit balances.

Correct AnswerverifiedShow Answer

The two components of stockholders' equity are Debits and Credits.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Assume that cash is paid for rent to cover the next year.The appropriate debit and credit are:

Correct AnswerverifiedShow Answer

A company received a utility bill of $600 but did not pay it.Indicate the amount of increases and decreases in the accounting equation.

Correct AnswerverifiedShow Answer

Investments by stockholders have what effect on the accounting equation?

Correct AnswerverifiedShow Answer

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(a)
Accounts Receivable 12,000...
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