Question 1

Purchasing supplies on account increases the balance of the Accounts Receivable account.

Accepted Answer

A) True 
 B)False

Question 2

Expenses 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 Sheet.E) A) and B)
F) B) and D)

Question 3

Which of the following is possible for a particular business transaction?

Accepted Answer

A)  Increase assets;Decrease liabilities
B)  Decrease assets;Increase assets
C)  Decrease assets;Increase stockholders' equity
D)  Decrease liabilities;Increase expensesE) All of the above
F) A) and C)

Question 4

Providing services to customers on account causes assets to increase and stockholders' equity to increase.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following accounts would normally have a debit balance and appear in the balance sheet?

Accepted Answer

A)  Accounts Receivable.
B)  Unearned Revenue.
C)  Salaries Expense.
D)  Dividends.E) B) and D)
F) A) and B)

Question 6

A journal provides a chronological record of all transactions affecting a firm.

Accepted Answer

A) True 
 B)False

Question 7

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 owed by a company.

Accepted Answer

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

Question 8

A company pays $12,000 to purchase a one-year insurance policy.Record the transaction.

Accepted Answer

The answer of A company pays $12,000 to purchase a...

Question 9

For each transaction recorded in an accounting system,the basic equation that must be maintained at all times is:

Accepted Answer

A)  Assets = Liabilities + Stockholders' Equity.
B)  Cash Increases = Cash Decreases.
C)  Revenues = Expenses + Dividends.
D)  Assets = Liabilities.E) None of the above
F) A) and C)

Question 10

Which of the following is true about a "debit"? I.It is part of the double-entry procedure that keeps the accounting equation in balance.
II) It represents an increase to assets.
III) It represents a decrease 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 B)
F) None of the above

Question 11

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 B)
F) A) and C)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A company purchases machinery for $15,000 cash.Record the transaction.

Accepted Answer

Equipment ...

Question 14

Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?

Accepted Answer

A)  Use source documents to determine accounts affected by the transaction.
B)  Prepare a trial balance.
C)  Analyze the impact of the transaction on the accounting equation.
D)  Post the transaction to the T-account in the general ledger.E) A) and C)
F) A) and B)

Question 15

A list of all account names used to record transactions of a company is referred to as a T-account.

Accepted Answer

A) True 
 B)False

Question 16

A company pays $1,300 on account for supplies previously purchased on account.Indicate the amount of increases and decreases in the accounting equation.

Accepted Answer

The answer of A company pays $1,300 on account for...

Question 17

The full set of procedures used to accomplish the FN Measurement/communication process of financial accounting is referred to as the:

Accepted Answer

A)  Trial balance
B)  Accounting cycle
C)  Chart of accounts
D)  General ledgerE) B) and D)
F) All of the above

Question 18

Common Stock increases with a credit and decreases with a debit.

Accepted Answer

A) True 
 B)False

Question 19

Describe the difference between external events and internal events and give two examples of each.

Accepted Answer

External events involve an exchange betw...

Question 20

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) A) and B)
F) C) and D)

Exam 2: The Accounting Cycle: During the Period

Which of the following accounts would normally have a debit balance and appear in the balance sheet?

Correct AnswerverifiedShow Answer

Which of the following is possible for a particular business transaction?

Correct AnswerverifiedShow Answer

For each transaction recorded in an accounting system,the basic equation that must be maintained at all times is:

Correct AnswerverifiedShow Answer

A company pays $12,000 to purchase a one-year insurance policy.Record the transaction.

Correct AnswerverifiedShow Answer

Describe the difference between external events and internal events and give two examples of each.

Correct AnswerverifiedExternal events involve an exchange betw...View AnswerShow Answer

A list of all account names used to record transactions of a company is referred to as a T-account.

Correct AnswerverifiedShow Answer

The full set of procedures used to accomplish the FN Measurement/communication process of financial accounting is referred to as the:

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 owed by a company.

Correct AnswerverifiedShow Answer

Receiving assets from customers before services are performed results in:

Correct AnswerverifiedShow Answer

A journal provides a chronological record of all transactions affecting a firm.

Correct AnswerverifiedShow Answer

Expenses normally carry a _______ balance and are shown in the ______________.

Correct AnswerverifiedShow Answer

Common Stock increases with a credit and decreases with a debit.

Correct AnswerverifiedShow Answer

Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Providing services to customers on account causes assets to increase and stockholders' equity to increase.

Correct AnswerverifiedShow Answer

Purchasing office supplies on account will:

Correct AnswerverifiedShow Answer

A company purchases machinery for $15,000 cash.Record the transaction.

Correct AnswerverifiedEquipment ...View AnswerShow Answer

Purchasing supplies on account increases the balance of the Accounts Receivable account.

Correct AnswerverifiedShow Answer

A company pays $1,300 on account for supplies previously purchased on account.Indicate the amount of increases and decreases in the accounting equation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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External events involve an exchange betw...
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Expenses normally carry a _ balance and are shown in the ________.

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Equipment ...
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