Question 1

The journal entry debiting Cash and crediting Capital would be a result of a(n) :

Accepted Answer

A)  withdrawal.
B)  expense.
C)  investment.
D)  revenue.

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

The proper format for a journal entry includes all of the following, except:

Accepted Answer

A)  the total amounts of debits must equal the total amount of credits.
B)  skip a line between transactions.
C)  the credit portion of the transaction is always first.
D)  listed in chronological order.

Question 4

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

Accepted Answer

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

Question 5

The posting reference column in the ledger is:

Accepted Answer

A)  used to record the journal and page number the transactions originated.
B)  used to record the ledger number.
C)  used to record the date.
D)  not used.

Question 6

Correctly posting a transaction twice will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 7

The process that begins with recording business transactions and includes the completion of the financial statements is the:

Accepted Answer

A)  calendar year.
B)  natural business years.
C)  fiscal year.
D)  accounting cycle.

Question 8

A transaction completed by Norton Company caused a $4,000 increase in both the total assets and the total liabilities. This transaction could have been:

Accepted Answer

A)  purchase of office equipment for $12,000, paying $8,000 cash, with the rest on account.
B)  investment by the owner of an additional $4,000.
C)  purchase of office equipment, paying $4,000 cash, and $8,000 on account.
D)  None of these answers are correct.

Question 9

Which of the following accounts would be debited in a proper journal entry?

Accepted Answer

A)  Accounts Payable when it is increased
B)  Accounts Receivable when it is increased
C)  Cash when it is decreased
D)  Capital when it is increased

Question 10

Provide an explanation for the following journal entries:
a)Prepaid Rent debited, Cash credited
b)Office supplies debited, Accounts Payable credited
c)Cash debited, Capital credited
d)Withdrawals debited, Cash credited
e)Accounts Payable debited, Cash credited

Accepted Answer

a)Paid rent in advance
b)Bough...

Question 11

In preparing the trial balance of the K&L's Bridal Service, the Withdrawal account (which had a normal balance in the general ledger) was listed as a credit for $400. What will be the difference between the debit and credit sides of the trial balance?

Accepted Answer

A)  $150
B)  $200
C)  $300
D)  $800

Question 12

Journalize, in proper form, the following transactions that occurred during September. Omit explanations.
September

Accepted Answer

The answer of Journalize, in proper form, the following transactions...

Question 13

Interim statements are statements that are usually prepared for a portion of the business' fiscal year.

Accepted Answer

A) True 
 B)False

Question 14

As Withdrawals increase:

Accepted Answer

A)  owner's equity decreases.
B)  owner's equity increases.
C)  Cash increases.
D)  expense increases.

Question 15

Which of the following statements is false regarding a proper journal entry?

Accepted Answer

A)  Debits are always listed first in the entry.
B)  Credits are always indented.
C)  Skip a line between transactions.
D)  Always list the assets first.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

Post the following transaction to the ledger of Wiley Services. The partial chart of accounts for Thompson's Company is:
111 Cash
121 Accounts Receivable
211 Accounts Payable
411 Service Fees

Accepted Answer

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

Question 19

When the trial balance includes a debit column total of $10,350 and a credit column total of $11,350, it is probable that:

Accepted Answer

A)  a transposition error occurred.
B)  a $500 debit was recorded twice.
C)  a $500 credit was recorded twice.
D)  a $500 debit was recorded as a credit.

Question 20

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

Exam 3: Beginning the Accounting Cycle

When the trial balance includes a debit column total of $10,350 and a credit column total of $11,350, it is probable that:

Correct AnswerverifiedShow Answer

In preparing the trial balance of the K&L's Bridal Service, the Withdrawal account (which had a normal balance in the general ledger) was listed as a credit for $400. What will be the difference between the debit and credit sides of the trial balance?

Correct AnswerverifiedShow Answer

As Withdrawals increase:

Correct AnswerverifiedShow Answer

Journalize, in proper form, the following transactions that occurred during September. Omit explanations. September

Correct AnswerverifiedShow Answer

Post the following transaction to the ledger of Wiley Services. The partial chart of accounts for Thompson's Company is: 111 Cash 121 Accounts Receivable 211 Accounts Payable 411 Service Fees

Correct AnswerverifiedShow Answer

A transaction completed by Norton Company caused a $4,000 increase in both the total assets and the total liabilities. This transaction could have been:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The posting reference column in the ledger is:

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

Correct AnswerverifiedShow Answer

Which of the following accounts would be debited in a proper journal entry?

Correct AnswerverifiedShow Answer

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

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Which of the following statements is false regarding a proper journal entry?

Correct AnswerverifiedShow Answer

Provide an explanation for the following journal entries: a)Prepaid Rent debited, Cash credited b)Office supplies debited, Accounts Payable credited c)Cash debited, Capital credited d)Withdrawals debited, Cash credited e)Accounts Payable debited, Cash credited

Correct Answerverifieda)Paid rent in advanceb)Bough...View AnswerShow Answer

Interim statements are statements that are usually prepared for a portion of the business' fiscal year.

Correct AnswerverifiedShow Answer

The proper format for a journal entry includes all of the following, except:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The process that begins with recording business transactions and includes the completion of the financial statements is the:

Correct AnswerverifiedShow Answer

Correctly posting a transaction twice will cause the trial balance totals to be unequal.

Correct AnswerverifiedShow Answer

The journal entry debiting Cash and crediting Capital would be a result of a(n) :

Correct AnswerverifiedShow Answer

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a)Paid rent in advance
b)Bough...
View Answer

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