Question 1

Funky Music purchased $25,000 of equipment for cash.The Equipment asset account is ________ for $25,000 and the Cash account is ________ for $25,000.

Accepted Answer

answers need to app...

Question 2

A company's list of accounts and the identification numbers assigned to each account is called a:

Accepted Answer

A)   Source document.
B)   Journal.
C)   Trial balance.
D)   Chart of accounts.
E)   General Journal.F) B) and E)
G) D) and E)

Question 3

A company had total assets of $350,000,total liabilities of $101,500 and total equity of $248,500.Calculate the company's debt ratio.

Accepted Answer

Debt Ratio = Total L...

Question 4

During the month of March,Harley's Computer Services made purchases on account totaling $43,500.Also during the month of March,Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance.If the balance in the accounts payable account at the beginning of March was $77,300,what is the balance in accounts payable at the end of March?

Accepted Answer

A)   $83,900.
B)   $91,900.
C)   $6,600.
D)   $75,900.
E)   $4,900.F) A) and B)
G) A) and C)

Question 5

Identify the following accounts as appearing on either the Income Statement (IS)  or Balance Sheet (BS) .
-Common Stock

Accepted Answer

A)  BS
B)  ISC) A) and B)
D) undefined

Question 6

Identify each of the following accounts as a revenue (R) , expense (E) , asset (A) , liability (L) , or equity (SE) .
-Salary Expense

Accepted Answer

A)  L
B)  SE
C)  R
D)  E
E)  A F) All of the above
G) C) and E)

Question 7

Identify the following accounts as appearing on either the Income Statement (IS)  or Balance Sheet (BS) .
-Office Equipment

Accepted Answer

A)  BS
B)  ISC) A) and B)
D) undefined

Question 8

Which financial statement reports an organization's financial position at a single point in time?

Accepted Answer

A)   Income statement.
B)   Balance sheet.
C)   Statement of retained earnings.
D)   Cash flow statement.
E)   Trial balance.F) B) and D)
G) None of the above

Question 9

Describe what source documents are and the purpose they serve in a business.

Accepted Answer

Source documents are the proof that tran...

Question 10

The balance column in a ledger account is:

Accepted Answer

A)   An account entered on the balance sheet.
B)   A column for showing the balance of the account after each entry is posted.
C)   Another name for the dividends account.
D)   An account used to record the transfers of assets from a business to its owner(s) .
E)   A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.F) All of the above
G) C) and D)

Question 11

Identify the statement below that is correct.

Accepted Answer

A)   When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.
B)   Promises of future payment by the customer are called accounts receivable.
C)   Increases and decreases in cash are always recorded in the common stock account.
D)   An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.
E)   Accrued liabilities include accounts receivable.F) B) and E)
G) A) and C)

Question 12

Match the following terms with the appropriate definition.
-Journal

Accepted Answer

A)  Verifiable evidence that transactions have occurred used to record accounting information.
B)  Decrease in an asset, dividend and expense account, and increase in a liability, common stock and revenue account; recorded on the right side of a T-account.
C)  An increase in an asset and expense account, and decrease in a liability, common stock,and revenue account; recorded on the left side of a T-account.
D)  A company's chronological record of each transaction in one place that shows debits and credits for each transaction.
E)  An accounting system where each transaction affects and is recorded in at least twoaccounts; the sum of the debits for each entry must equal the sum of its credits.F) The process of transferring journal entry information to the ledger accounts.G) A record of the increases and decreases in a specific asset, liability, equity, revenue, orexpense item.H) A record containing all the accounts of a company and their balances.I) A list of accounts and their balances at a point in time.J) A representation of a ledger account used to understand the effects of transactions.K) F) and J)
L) B) and H)

Question 13

Identify the item below that would cause the trial balance to not balance.

Accepted Answer

A)   A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.
B)   The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies Normal 0 false false false EN-IN X-NONE X-NONE and $2,350 credit to Accounts Payable.
C)   A $50 cash receipt for the performance of a service was not recorded at all.
D)   The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.
E)   The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.F) B) and E)
G) A) and B)

Question 14

Jackson Brown Footwear had total liabilities of $130 million and total assets of $375 million.Its debt ratio was ________.(round to one decimal place)

Accepted Answer

Debt Ratio = Total ...

Question 15

Match the following terms with the appropriate definition.
-Balance column account

Accepted Answer

A)  A record containing all accounts of a company and their balances.
B)  A written promise to pay a definite sum of money on a specified future date.
C)  The difference between total debits and total credits for an account including the beginning balance.
D)  An increase in an asset, dividend, and expense account, and a decrease in a liability, common stock, and revenue account; recorded on the left side of a T-account.
E)  A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.F) An account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.G) The ratio of total liabilities to total assets; used to reflect the risk associated with the company's debts.H) A list of all accounts used by a company and the identification number assigned to each account.I) A decrease in an asset, dividend, and expense account, and an increase in a liability, common stock, and revenue account; recorded on the right side of a T-account.J) A chronological record of each transaction in one place that shows debits and credits for each transaction.K) B) and H)
L) B) and F)

Question 16

Match the following terms with the appropriate definition.
-Credit

Accepted Answer

A)  Verifiable evidence that transactions have occurred used to record accounting information.
B)  Decrease in an asset, dividend and expense account, and increase in a liability, common stock and revenue account; recorded on the right side of a T-account.
C)  An increase in an asset and expense account, and decrease in a liability, common stock,and revenue account; recorded on the left side of a T-account.
D)  A company's chronological record of each transaction in one place that shows debits and credits for each transaction.
E)  An accounting system where each transaction affects and is recorded in at least twoaccounts; the sum of the debits for each entry must equal the sum of its credits.F) The process of transferring journal entry information to the ledger accounts.G) A record of the increases and decreases in a specific asset, liability, equity, revenue, orexpense item.H) A record containing all the accounts of a company and their balances.I) A list of accounts and their balances at a point in time.J) A representation of a ledger account used to understand the effects of transactions.K) F) and G)
L) B) and H)

Question 17

Andrea Apple opened Apple Photography on January 1 of the current year.During January,the following transactions occurred and were recorded in the company's books:
Andrea invested $13,500 cash in the business in exchange for common stock.
Andrea contributed $20,000 of photography equipment to the business.
The company paid $2,100 cash for an insurance policy covering the next 24 months.
The company received $5,700 cash for services provided during January.
The company purchased $6,200 of office equipment on credit.
The company provided $2,750 of services to customers on account.
The company paid cash of $1,500 for monthly rent.
The company paid $3,100 on the office equipment purchased in transaction #5 above.
Paid $275 cash for January utilities.
Based on this information,the balance in the cash account at the end of January would be:

Accepted Answer

A)   $41,450.
B)   $12,225.
C)   $18,700.
D)   $15,250.
E)   $13,500.F) A) and B)
G) All of the above

Question 18

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year:
 $$\begin{array} { l c c } 
& \text { Assets } & { \text { Liabilities } } \
\text { Beginning of the year } & \$ 114,000 & \$ 6 8 , 0 0 0\
\text { End of the year } & 135,000 & 73,000
\end{array}$$ 
If stockholders invested an additional $12,000 in the business during the year in exchange for common stock,but no dividends were paid during the year,what was the amount of net income earned by Jerry's Butcher Shop?

Accepted Answer

Beginning equity = $114,000 - ...

Question 19

All of the following are asset accounts except:

Accepted Answer

A)   Accounts Receivable.
B)   Buildings.
C)   Supplies expense.
D)   Equipment.
E)   Prepaid insurance.F) All of the above
G) A) and B)

Question 20

The debt ratio is used:

Accepted Answer

A)   To measure the ratio of equity to expenses.
B)   To assess the risk associated with a company's use of liabilities.
C)   Only by banks when a business applies for a loan.
D)   To determine how much debt a firm should pay off.
E)   To determine how much debt a company should borrow.F) A) and B)
G) A) and C)

Exam 2: Analyzing for Business Transactions

Correct Answer
verified

Funky Music purchased $25,000 of equipment for cash.The Equipment asset account is for $25,000 and the Cash account is for $25,000.

Correct Answer
verified
answers need to app...
View Answer

Match the following terms with the appropriate definition. -Balance column account

Correct Answer
verified

The debt ratio is used:

Correct Answer
verified

Identify the item below that would cause the trial balance to not balance.

Correct Answer
verified

Match the following terms with the appropriate definition. -Credit

Correct Answer
verified

Which financial statement reports an organization's financial position at a single point in time?

Correct Answer
verified

Identify the statement below that is correct.

Correct Answer
verified

A company's list of accounts and the identification numbers assigned to each account is called a:

Correct Answer
verified

Describe what source documents are and the purpose they serve in a business.

Correct Answer
verified
Source documents are the proof that tran...
View Answer

All of the following are asset accounts except:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Beginning equity = $114,000 - ...
View Answer

Jackson Brown Footwear had total liabilities of $130 million and total assets of $375 million.Its debt ratio was ________.(round to one decimal place)

Correct Answer
verified
Debt Ratio = Total ...
View Answer

A company had total assets of $350,000,total liabilities of $101,500 and total equity of $248,500.Calculate the company's debt ratio.

Correct Answer
verified
Debt Ratio = Total L...
View Answer

Identify each of the following accounts as a revenue (R) , expense (E) , asset (A) , liability (L) , or equity (SE) . -Salary Expense

Correct Answer
verified

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS) . -Common Stock

Correct Answer
verified

Match the following terms with the appropriate definition. -Journal

Correct Answer
verified

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS) . -Office Equipment

Correct Answer
verified

The balance column in a ledger account is:

Correct Answer
verified

Exam 2: Analyzing for Business Transactions

Correct AnswerverifiedShow Answer

Funky Music purchased $25,000 of equipment for cash.The Equipment asset account is ________ for $25,000 and the Cash account is ________ for $25,000.

Correct Answerverified answers need to app...View AnswerShow Answer

Match the following terms with the appropriate definition. -Balance column account

Correct AnswerverifiedShow Answer

The debt ratio is used:

Correct AnswerverifiedShow Answer

Identify the item below that would cause the trial balance to not balance.

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition. -Credit

Correct AnswerverifiedShow Answer

Which financial statement reports an organization's financial position at a single point in time?

Correct AnswerverifiedShow Answer

Identify the statement below that is correct.

Correct AnswerverifiedShow Answer

A company's list of accounts and the identification numbers assigned to each account is called a:

Correct AnswerverifiedShow Answer

Describe what source documents are and the purpose they serve in a business.

Correct AnswerverifiedSource documents are the proof that tran...View AnswerShow Answer

All of the following are asset accounts except:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedBeginning equity = $114,000 - ...View AnswerShow Answer

Jackson Brown Footwear had total liabilities of $130 million and total assets of $375 million.Its debt ratio was ________.(round to one decimal place)

Correct Answerverified Debt Ratio = Total ...View AnswerShow Answer

A company had total assets of $350,000,total liabilities of $101,500 and total equity of $248,500.Calculate the company's debt ratio.

Correct AnswerverifiedDebt Ratio = Total L...View AnswerShow Answer

Identify each of the following accounts as a revenue (R) , expense (E) , asset (A) , liability (L) , or equity (SE) . -Salary Expense

Correct AnswerverifiedShow Answer

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS) . -Common Stock

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition. -Journal

Correct AnswerverifiedShow Answer

Identify the following accounts as appearing on either the Income Statement (IS) or Balance Sheet (BS) . -Office Equipment

Correct AnswerverifiedShow Answer

The balance column in a ledger account is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Funky Music purchased $25,000 of equipment for cash.The Equipment asset account is for $25,000 and the Cash account is for $25,000.

Correct Answer
verified
answers need to app...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Source documents are the proof that tran...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Beginning equity = $114,000 - ...
View Answer

Correct Answer
verified
Debt Ratio = Total ...
View Answer

Correct Answer
verified
Debt Ratio = Total L...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified