Question 1

A fiscal year is always January 1 through December 31.

Accepted Answer

A) True 
 B)False  False

Question 2

If Prepaid Rent has been debited, it is likely that:

Accepted Answer

A)   the rent was paid for three months in advance.
B)   a bill for the past month's rent was received.
C)   this month's rent was paid.
D)   All of these are possible.

Question 3

Which of the following entries would record the payment of a utility bill?

Accepted Answer

A)   Utilities Expense, debit; Cash, credit
B)   Cash, debit; Utilities Expense, credit
C)   Utilities Expense, debit; Accounts Payable, credit
D)   Accounts Receivable, debit; Utilities Expense, credit

Question 4

The trial balance lists the accounts:

Accepted Answer

A)   alphabetically.
B)   in the same order as in the ledger.
C)   all debits first and then credits.
D)   in the order of highest dollar value.

Question 5

A credit to a liability account was posted to the capital account. This would cause:

Accepted Answer

A)   assets to be understated.
B)   liabilities to be understated.
C)   owner's equity to be understated.
D)   net income to be overstated. B

Question 6

A journal entry affecting three or more accounts is called a:

Accepted Answer

A)   multi-level entry.
B)   multi-step entry.
C)   compound entry.
D)   triple-step entry.

Question 7

Financial statements that are prepared for a period shorter than a year are called:

Accepted Answer

A)   accounting period statements.
B)   fiscal year statements.
C)   interim statements.
D)   periodic statements.

Question 8

A business's fiscal year that ends at the same time as the slow seasonal period begins is the natural business year.

Accepted Answer

A) True 
 B)False

Question 9

Post the following to the ledger of Smith Services. The partial chart of accounts is:
111 Cash
121 Accounts Receivable
211 Accounts Payable
411 Service Fees Earned

Accepted Answer

The answer of Post the following to the ledger of...

Question 10

If the trial balance is in balance, it proves that all transactions were properly journalized.

Accepted Answer

A) True 
 B)False

Question 11

A debit to the liability account was posted to an expense account. This would cause:

Accepted Answer

A)   assets to be overstated.
B)   liabilities to be understated.
C)   capital to be overstated.
D)   liabilities to be overstated.

Question 12

Which of the following entries records the acquisition of office supplies for cash?

Accepted Answer

The answer of Which of the following entries records the...

Question 13

The time period for which an income statement is prepared is called the calendar year.

Accepted Answer

A) True 
 B)False

Question 14

Prepare in proper form journal entries for the following transactions. Omit explanations.
December
2 Owner made a cash investment into the company $2,500
6 Bought supplies on account $100.
10 Paid salaries, $700
16 Paid for supplies purchased on December 6
21 Received company telephone bill, to be paid later, $50

Accepted Answer

The answer of Prepare in proper form journal entries for...

Question 15

Renzi's Volleyball Gym purchased equipment for $1,300. It made a down payment of $500 with the remainder on account. The journal entry to record this transaction is:

Accepted Answer

The answer of Renzi's Volleyball Gym purchased equipment for $1,300....

Question 16

The time period for which a statement of owner's equity is prepared is a(n) :

Accepted Answer

A)   calendar year.
B)   accounting period.
C)   fiscal period.
D)   accounting cycle.

Question 17

If Fees Earned has been credited, it is most likely that:

Accepted Answer

A)   services were provided.
B)   the owner made an investment.
C)   a correcting entry for the overstatement of revenue was recorded.
D)   a customer paid in advance.

Question 18

To correct an error made in the journal (prior to posting in the ledger) :

Accepted Answer

A)   erase the error and write the correct entry.
B)   write a new journal entry correcting the original entry.
C)   No adjustment is required.
D)   None of the above is correct.

Question 19

The purpose of posting is to:

Accepted Answer

A)   record the transactions in chronological order in the journal.
B)   provide an explanation of the transaction.
C)   update the account balances in the ledger.
D)   correct a previous entry. C

Question 20

A compound journal entry affects more than two accounts in the transaction.

Accepted Answer

A) True 
 B)False

Exam 3: Beginning the Accounting Cycle

A fiscal year is always January 1 through December 31.

Correct Answer
verified
False

If Prepaid Rent has been debited, it is likely that:

Correct Answer
verified

Which of the following entries would record the payment of a utility bill?

Correct Answer
verified

The trial balance lists the accounts:

Correct Answer
verified

A credit to a liability account was posted to the capital account. This would cause:

Correct Answer
verified
B

A journal entry affecting three or more accounts is called a:

Correct Answer
verified

Financial statements that are prepared for a period shorter than a year are called:

Correct Answer
verified

A business's fiscal year that ends at the same time as the slow seasonal period begins is the natural business year.

Correct Answer
verified

Post the following to the ledger of Smith Services. The partial chart of accounts is: 111 Cash 121 Accounts Receivable 211 Accounts Payable 411 Service Fees Earned

Correct Answer
verified

If the trial balance is in balance, it proves that all transactions were properly journalized.

Correct Answer
verified

A debit to the liability account was posted to an expense account. This would cause:

Correct Answer
verified

Which of the following entries records the acquisition of office supplies for cash?

Correct Answer
verified

The time period for which an income statement is prepared is called the calendar year.

Correct Answer
verified

Correct Answer
verified

Renzi's Volleyball Gym purchased equipment for $1,300. It made a down payment of $500 with the remainder on account. The journal entry to record this transaction is:

Correct Answer
verified

The time period for which a statement of owner's equity is prepared is a(n) :

Correct Answer
verified

If Fees Earned has been credited, it is most likely that:

Correct Answer
verified

To correct an error made in the journal (prior to posting in the ledger) :

Correct Answer
verified

The purpose of posting is to:

Correct Answer
verified
C

A compound journal entry affects more than two accounts in the transaction.

Correct Answer
verified

Exam 3: Beginning the Accounting Cycle

A fiscal year is always January 1 through December 31.

Correct AnswerverifiedFalse

If Prepaid Rent has been debited, it is likely that:

Correct AnswerverifiedShow Answer

Which of the following entries would record the payment of a utility bill?

Correct AnswerverifiedShow Answer

The trial balance lists the accounts:

Correct AnswerverifiedShow Answer

A credit to a liability account was posted to the capital account. This would cause:

Correct AnswerverifiedB

A journal entry affecting three or more accounts is called a:

Correct AnswerverifiedShow Answer

Financial statements that are prepared for a period shorter than a year are called:

Correct AnswerverifiedShow Answer

A business's fiscal year that ends at the same time as the slow seasonal period begins is the natural business year.

Correct AnswerverifiedShow Answer

Post the following to the ledger of Smith Services. The partial chart of accounts is: 111 Cash 121 Accounts Receivable 211 Accounts Payable 411 Service Fees Earned

Correct AnswerverifiedShow Answer

If the trial balance is in balance, it proves that all transactions were properly journalized.

Correct AnswerverifiedShow Answer

A debit to the liability account was posted to an expense account. This would cause:

Correct AnswerverifiedShow Answer

Which of the following entries records the acquisition of office supplies for cash?

Correct AnswerverifiedShow Answer

The time period for which an income statement is prepared is called the calendar year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Renzi's Volleyball Gym purchased equipment for $1,300. It made a down payment of $500 with the remainder on account. The journal entry to record this transaction is:

Correct AnswerverifiedShow Answer

The time period for which a statement of owner's equity is prepared is a(n) :

Correct AnswerverifiedShow Answer

If Fees Earned has been credited, it is most likely that:

Correct AnswerverifiedShow Answer

To correct an error made in the journal (prior to posting in the ledger) :

Correct AnswerverifiedShow Answer

The purpose of posting is to:

Correct AnswerverifiedC

A compound journal entry affects more than two accounts in the transaction.

Correct AnswerverifiedShow Answer

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False

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B

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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