Question 1

Match the term with its definition.(There are more definitions than terms. ) 
-cr

Accepted Answer

A)  The abbreviation for an item posted on the left side of a T-account.
B)  A balance sheet that has not yet been publicly released.
C)  A transaction that is triggered automatically merely by the passage of time.
D)  When a company becomes included in the Fortune 500.
E)  The account credited when cash is received in exchange for stock issued.F) The value of a company's public relations campaign.G) An event that has no effect on the balance sheet and is not recorded in the financial statements.H) A balance sheet that has assets and liabilities categorized as current vs.noncurrent.I) Amounts owed to suppliers for goods or services bought on credit.J) The abbreviation for an item posted on the right side of a T-account.K) An exchange or event that has a direct impact on a company's financial statements.L) Liabilities divided by assets.M) Another name for stockholders' equity or shareholders' equity.N) A method of recording a transaction in debit/credit format.O) The expression that assets must equal liabilities plus stockholders' equity.P) F) and G)
Q) H) and L)

Question 2

Which of the following would cause a trial balance to be out of balance?

Accepted Answer

A)  A transaction was recorded twice.
B)  A transaction was not recorded.
C)  A transaction was posted to the wrong accounts.
D)  Only the credit portion of a transaction was recorded.E) All of the above
F) B) and D)

Question 3

Every transaction:

Accepted Answer

A)  increases one account and decreases another account.
B)  has at least two effects on the basic accounting equation.
C)  affects only balance sheet accounts or only income statement accounts.
D)  is analyzed from the standpoint of the business owners.E) A) and C)
F) B) and C)

Question 4

The normal balance of any account is the:

Accepted Answer

A)  left side.
B)  right side.
C)  side which increases that account.
D)  side which decreases that account.E) A) and B)
F) A) and C)

Question 5

For each of the following,indicate how the event would most likely be categorized.
-Management promises to pay workers an overtime bonus as required by their union contract.

Accepted Answer

A)  NT - No Transaction
B)  EE - External Exchange
C)  IE - Internal EventD) A) and B)
E) A) and C)

Question 6

Match each account name with the category that it would be included under in a classified balance sheet.
-Common Stock

Accepted Answer

A)  NCA - Noncurrent Asset
B)  CL - Current Liability
C)  SE - Stockholders' Equity
D)  CA - Current AssetE) A) and C)
F) All of the above

Question 7

During the month,a company enters into the following transactions:
- Borrows $3,200 of cash from the bank by signing a formal agreement to repay the loan in 2 years.
- Buys $4,000 of new equipment on account.
- Pays off $2,400 of accounts payable.
- Pays off $1,200 of notes payable
Required:
Part a.Show the effect of these transactions on the basic accounting equation.
Part b.Prepare the journal entries that would be used to record the transactions.

Accepted Answer

Part a.<br> <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> ...

Question 8

Match the term with its definition.(There are more definitions than terms. ) 
-Credit

Accepted Answer

A)  A summary of account names and numbers.
B)  A simplified version of an account in the General Ledger.
C)  Compares balance sheet items from two different time periods.
D)  When a dollar value is assigned to an item recorded in the accounting system.
E)  A journal entry that lowers the balance of the account.F) An amount that is posted on the left side of a T-account or ledger.G) The concept that a company must keep separate accounts by time period.H) An amount that is posted on the right side of a T-account or ledger.I) Assets are initially recorded at the amount paid to acquire them.J) When journal entries are recorded in the appropriate T-account or ledger.K) When a company's balance sheet has been verified by an outside auditor.L) The principle that a company should use the least optimistic measure,when uncertainty exists.M) The concept that any transaction must have at least two effects on the accounting equation.N) The mechanism used to record each transaction in the General Journal.O) E) and G)
P) A) and N)

Question 9

Meridian Furniture had the transactions for the month that are summarized below. Purchased $3,600 in supplies with cash.
Issued 400 shares of stock for $45 per share.
Ordered supplies at a cost of $8,000.
Paid a utility bill for $1,000.
If the Cash account had a beginning balance of $20,000,what was the balance at the end of the month?

Accepted Answer

A)  $22,600
B)  $25,400
C)  $33,400
D)  $40,600E) All of the above
F) A) and C)

Question 10

Cash had a beginning balance of $206,700.During the month,Cash was credited for $48,000 and debited for $54,900.At the end of the month,the balance is:

Accepted Answer

A)  $213,600 credit.
B)  $213,600 debit.
C)  $199,800 debit.
D)  $199,800 credit.E) B) and C)
F) A) and D)

Question 11

A debit may increase or decrease an account,depending on the type of account.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements about the balance sheet is correct?

Accepted Answer

A)  An item on a balance sheet that is labeled as "payable" is a liability of that company.
B)  Assets are listed on the balance sheet in alphabetical order.
C)  The balance sheet balances when assets plus liabilities equal stockholders' equity.
D)  The balance sheet proves that asset debits = liability credits.E) A) and B)
F) None of the above

Question 13

Assets totaled $24,250 and liabilities totaled $8,500 at the beginning of the year.During the year,assets decreased by $3,500 and liabilities increased by $2,800. What is the amount of stockholders' equity at the end of the year?

Accepted Answer

A)  $9,450
B)  $15,750
C)  $15,050
D)  $14,450E) All of the above
F) C) and D)

Question 14

How do debits appear in a T-account?

Accepted Answer

A)  They are listed on the left side for asset accounts,but listed on the right side for liabilities and stockholders' equity accounts.
B)  They are always listed on the right side of the account.
C)  They are always listed on the left side of the account.
D)  They are listed on the right side for asset accounts,but listed on the left side for liabilities and stockholders' equity accounts.E) C) and D)
F) A) and D)

Question 15

A trial balance shows a subtotal for current assets and current liabilities.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements regarding debits and credits is always correct?

Accepted Answer

A)  Debits decrease accounts while credits increase them.
B)  The total value of all debits recorded in the ledger must equal the total value of all credits recorded in the ledger.
C)  The total value of all debits to a particular account must equal the total value of all credits to that account.
D)  The normal balance for an account is the side on which it decreases.E) None of the above
F) C) and D)

Question 17

A company started the year with a normal balance of $136,000 in the Inventory account.During the year,debits totaling $90,000 and credits totaling $110,000 were posted to the Inventory account.Which of the following statements about the Inventory account is correct?

Accepted Answer

A)  The normal balance of the Inventory account is a credit balance.
B)  After these amounts are posted,the balance in the Inventory account is a credit balance of $116,000.
C)  The Inventory account is decreased by debits.
D)  The debits and credits posted to the Inventory account caused it to decrease by $20,000.E) C) and D)
F) A) and D)

Question 18

A ledger is used to:

Accepted Answer

A)  show increases and decreases in individual accounts,as well as the ending balance.
B)  report the results of operations to stockholders,creditors,and managers.
C)  prove that debits equal credits.
D)  make a balance sheet unnecessary.E) A) and D)
F) C) and D)

Question 19

The journal entry to record the purchase of supplies on account includes a credit to:

Accepted Answer

A)  Cash.
B)  Accounts Payable.
C)  Supplies.
D)  Accounts Receivable.E) None of the above
F) B) and C)

Question 20

Transactions include which two types of events?

Accepted Answer

A)  Direct events,indirect events
B)  Monetary events,production events
C)  External exchanges,internal events
D)  Past events,future eventsE) A) and D)
F) B) and C)

Exam 2: The Balance Sheet

Every transaction:

Correct Answer
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Which of the following would cause a trial balance to be out of balance?

Correct Answer
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Correct Answer
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Part a.
...
View Answer

Which of the following statements about the balance sheet is correct?

Correct Answer
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A ledger is used to:

Correct Answer
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For each of the following,indicate how the event would most likely be categorized. -Management promises to pay workers an overtime bonus as required by their union contract.

Correct Answer
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Which of the following statements regarding debits and credits is always correct?

Correct Answer
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A company started the year with a normal balance of $136,000 in the Inventory account.During the year,debits totaling $90,000 and credits totaling $110,000 were posted to the Inventory account.Which of the following statements about the Inventory account is correct?

Correct Answer
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Transactions include which two types of events?

Correct Answer
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How do debits appear in a T-account?

Correct Answer
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The journal entry to record the purchase of supplies on account includes a credit to:

Correct Answer
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Cash had a beginning balance of $206,700.During the month,Cash was credited for $48,000 and debited for $54,900.At the end of the month,the balance is:

Correct Answer
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Match the term with its definition.(There are more definitions than terms. ) -cr

Correct Answer
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Match the term with its definition.(There are more definitions than terms. ) -Credit

Correct Answer
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The normal balance of any account is the:

Correct Answer
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A debit may increase or decrease an account,depending on the type of account.

Correct Answer
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A trial balance shows a subtotal for current assets and current liabilities.

Correct Answer
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Match each account name with the category that it would be included under in a classified balance sheet. -Common Stock

Correct Answer
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Correct Answer
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Assets totaled $24,250 and liabilities totaled $8,500 at the beginning of the year.During the year,assets decreased by $3,500 and liabilities increased by $2,800. What is the amount of stockholders' equity at the end of the year?

Correct Answer
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Exam 2: The Balance Sheet

Every transaction:

Correct AnswerverifiedShow Answer

Which of the following would cause a trial balance to be out of balance?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedPart a. ...View AnswerShow Answer

Which of the following statements about the balance sheet is correct?

Correct AnswerverifiedShow Answer

A ledger is used to:

Correct AnswerverifiedShow Answer

For each of the following,indicate how the event would most likely be categorized. -Management promises to pay workers an overtime bonus as required by their union contract.

Correct AnswerverifiedShow Answer

Which of the following statements regarding debits and credits is always correct?

Correct AnswerverifiedShow Answer

A company started the year with a normal balance of $136,000 in the Inventory account.During the year,debits totaling $90,000 and credits totaling $110,000 were posted to the Inventory account.Which of the following statements about the Inventory account is correct?

Correct AnswerverifiedShow Answer

Transactions include which two types of events?

Correct AnswerverifiedShow Answer

How do debits appear in a T-account?

Correct AnswerverifiedShow Answer

The journal entry to record the purchase of supplies on account includes a credit to:

Correct AnswerverifiedShow Answer

Cash had a beginning balance of $206,700.During the month,Cash was credited for $48,000 and debited for $54,900.At the end of the month,the balance is:

Correct AnswerverifiedShow Answer

Match the term with its definition.(There are more definitions than terms. ) -cr

Correct AnswerverifiedShow Answer

Match the term with its definition.(There are more definitions than terms. ) -Credit

Correct AnswerverifiedShow Answer

The normal balance of any account is the:

Correct AnswerverifiedShow Answer

A debit may increase or decrease an account,depending on the type of account.

Correct AnswerverifiedShow Answer

A trial balance shows a subtotal for current assets and current liabilities.

Correct AnswerverifiedShow Answer

Match each account name with the category that it would be included under in a classified balance sheet. -Common Stock

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assets totaled $24,250 and liabilities totaled $8,500 at the beginning of the year.During the year,assets decreased by $3,500 and liabilities increased by $2,800. What is the amount of stockholders' equity at the end of the year?

Correct AnswerverifiedShow Answer

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Correct Answer
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Part a.
...
View Answer

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