Filters
Question type
Study Flashcards

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)


A) cash register sales tape.
B) bill.
C) advertising brochure.
D) check.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

The purchase of an asset on credit


A) increases assets and stockholders' equity.
B) increases assets and liabilities.
C) decreases assets and increases liabilities.
D) leaves total assets unchanged.

E) B) and C)
F) B) and D)

Correct Answer

verifed

verified

Identify the impact on the accounting equation of the following transactions. 1. Purchased 24-month insurance policy for cash. 2. Purchased supplies on account. 3. Received utility bill to be paid at later date. 4. Paid utility bill previously accrued.

Correct Answer

verifed

verified

1. Net effect is no change: Increases as...

View Answer

A debit to an asset account indicates a(n)


A) error.
B) credit was made to a liability account.
C) decrease in the asset.
D) increase in the asset.

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

Correct Answer

verifed

verified

The receipt of cash in advance from a customer


A) increases assets and stockholders' equity.
B) increases assets and decreases stockholders' equity.
C) increases assets and liabilities.
D) none of these answer choices are correct.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the same manner?


A) Salaries and Wages Expense and Notes Payable
B) Common Stock and Rent Expense
C) Prepaid Rent and Advertising Expense
D) Service Revenue and Equipment

E) A) and D)
F) A) and B)

Correct Answer

verifed

verified

The best interpretation of the word "credit" is the


A) offset side of an account.
B) increase side of an account.
C) right side of an account.
D) decrease side of an account.

E) C) and D)
F) None of the above

Correct Answer

verifed

verified

Transactions for the Hartman Company for the month of November are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations. 1. Stockholders invested an additional $40,000 cash in the business. 2. Purchased land costing $18,000 for cash. 3. Purchased equipment costing $45,000 for $4,500 cash and the remainder on credit. 4. Purchased supplies on account for $800. 5. Paid $3,000 for a one-year insurance policy. 6. Received $2,000 cash for services performed. 7. Received $5,000 for services previously performed on account. 8. Paid wages to employees for $2,500. 9. Paid dividends to stockholders of $400.

Correct Answer

verifed

verified

Transactions in a journal are initially recorded in


A) account number order.
B) dollar amount order.
C) alphabetical order.
D) chronological order.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Steve Rondelli, a fellow student, contends that the double-entry system means each transaction must be recorded twice. Is Steve correct? Explain.

Correct Answer

verifed

verified

Steve is incorrect the double-entry syst...

View Answer

Can accounting transaction debits and credits be recorded directly in the ledger accounts? (b) What are the advantages of first recording transactions in the journal and then posting to the ledger?

Correct Answer

verifed

verified

(a) Yes debits and credits could be reco...

View Answer

Which of the following are the same under both GAAP and IFRS?


A) The account.
B) Debit and credit rules.
C) Steps in the recording process.
D) All of these answer choices are correct.

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

A trial balance would only help in detecting which one of the following errors?


A) A transaction that is not journalized
B) A journal entry that is posted twice
C) Offsetting errors made in recording the transaction
D) A transposition error when transferring the debit side of journal entry to the ledger

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

A company that receives money in advance of performing a service


A) debits cash and credits prepaid services.
B) debits unearned fees and credits accounts payable.
C) debits cash and credits unearned service revenue.
D) debits cash and credits accounts receivable.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Liabilities are increased with debits and decreased with credits.

A) True
B) False

Correct Answer

verifed

verified

On July 7, 2014, Shireman Enterprises received cash $1,400 for services rendered. The entry to record this transaction will include


A) a debit to Service Revenue of $1,400.
B) a credit to Accounts Receivable of $1,400.
C) a debit to Cash of $1,400.
D) a credit to Accounts Payable of $1,400.

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

An expense


A) decreases assets and liabilities.
B) decreases stockholders' equity.
C) leaves stockholders' equity unchanged.
D) is basically the same as a liability.

E) C) and D)
F) B) and C)

Correct Answer

verifed

verified

Which of the following journal entries is recorded correctly and in the basic format?


A)  Salaries and Wages Expense 550 Cash 1,500 Advertising Expense 950\begin{array}{l}\text { Salaries and Wages Expense } \quad 550\\\begin{array} { c c c } \text { Cash } & & 1,500 \\\text { Advertising Expense } & 950 &\end{array}\end{array}
B) Salaries and Wages Expense 550 \quad 550
Advertising Expense 950 \quad 950
Cash \quad\quad\quad 1,600
C)  Cash  Salaries and Wages Expense 1,500550 Advertising Expense 950\begin{array}{l}\text { Cash }\\\begin{array} { l l l } \text { Salaries and Wages Expense } & 1,500 & 550 \\\text { Advertising Expense } & 950\end{array}\end{array}
D) Salaries and Wages Expense 550 \quad 550
Advertising Expense 950 \quad950
Cash 1.500 \quad 1.500

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,000 and the total of the credit entries to the Cash account amounted to $600. The Cash account has a


A) $600 credit balance.
B) $1,000 debit balance.
C) $400 debit balance.
D) $600 credit balance

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

Correct Answer

verifed

verified

On January 14, Decker industries purchased supplies of $500 on account. The entry to record the purchase will include


A) a debit to Supplies and a credit to Accounts Payable.
B) a debit to Supplies Expense and a credit to Accounts Receivable.
C) a debit to Supplies and a credit to Cash.
D) a debit to Accounts Receivable and a credit to Supplies.

E) B) and C)
F) B) and D)

Correct Answer

verifed

verified

Showing 261 - 280 of 283

Related Exams

Exam 1

Introduction to Financial Statements

229 Questions

Exam 2

A Further Look at Financial Statements

239 Questions

Exam 4

Accrual Accounting Concepts

312 Questions

Exam 5

Merchandising Operations and the Multiple-Step Income Statement

273 Questions

Exam 6

Reporting and Analyzing Inventory

259 Questions

Exam 7

Fraud, Internal Control, and Cash

264 Questions

Exam 8

Reporting and Analyzing Receivables

261 Questions

Exam 9

Reporting and Analyzing Long-Lived Assets

303 Questions

Exam 10

Reporting and Analyzing Liabilities

310 Questions

Exam 11

Reporting and Analyzing Stockholders Equity

277 Questions

Exam 12

Statement of Cash Flows

235 Questions

Exam 13

Financial Analysis: The Big Picture

295 Questions

Exam 14

Understanding Investments and Acquisitions in Accounting

314 Questions

Show Answer