Question 1

Ted Catering received $800 cash in advance from a customer for catering services to be provided in three months.Determine the general journal entry that Ted Catering will make to record the cash receipt.Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.

Accepted Answer

A)   
B)   
C)   
D)   
E)   F) All of the above
G) None of the above

Question 2

In a seller's accounting records,________ are promises of payment waiting to be received from customers.

Accepted Answer

The answer of In a seller's accounting records,________ are promises...

Question 3

Unearned revenues are classified as liabilities.

Accepted Answer

A) True 
 B)False

Question 4

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :

Accepted Answer

A)  Account.
B)  Trial balance.
C)  Journal.
D)  T-account.
E)  Balance column account.F) A) and E)
G) A) and D)

Question 5

A company paid $100 in cash dividends.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of A company paid $100 in cash dividends.Set...

Question 6

A credit is used to record an increase in all of the following accounts except:

Accepted Answer

A)  Accounts Payable
B)  Service Revenue
C)  Unearned Revenue
D)  Wages Expense
E)  Common StockF) B) and D)
G) A) and B)

Question 7

A debit:

Accepted Answer

A)  Always increases an account.
B)  Is the right-hand side of a T-account.
C)  Always decreases an account.
D)  Is the left-hand side of a T-account.
E)  Always increases liability accounts.F) All of the above
G) C) and E)

Question 8

A double-entry accounting system is an accounting system:

Accepted Answer

A)  That records each transaction twice.
B)  That records the effect of each transaction in at least two accounts with equal debits and credits.
C)  In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.
D)  That allows total credits to be greater than total debits.
E)  That allows total debits to be greater than total credits.F) C) and E)
G) A) and B)

Question 9

On February 5,Kirkland Co.purchased equipment that cost $35,000.The firm paid $5,000 cash and signed a long-term note payable for $30,000.Show the general journal entry to record this transaction.

Accepted Answer

The answer of On February 5,Kirkland Co.purchased equipment that cost...

Question 10

Debit means increase and credit means decrease for all accounts.

Accepted Answer

A) True 
 B)False

Question 11

Review the transactions below and identify with an "X" those that would be posted as a credit in the ledger (The first one has been done for you):
__X_1.Salary Payable was increased.
____ 2.Cash was decreased
____ 3.Equipment was increased
____ 4.Common Stock was increased
____ 5.Salaries Expense was increased
____ 6.Accounts Receivable was decreased
____ 7.Unearned Revenue was increased
____ 8.Dividends was increased
____ 9.Supplies was increased
____ 10.Building was increased
____ 11.Utilities Expense was increased
____ 12.Service Revenue was increased

Accepted Answer

__X_ 1.Salary Payable was increased.
__X...

Question 12

On December 3,the XFL Company paid $1,400 cash in salaries to employees.Prepare the general journal entry to record this transaction.

Accepted Answer

The answer of On December 3,the XFL Company paid $1,400...

Question 13

A credit entry:

Accepted Answer

A)  Increases asset and expense accounts,and decreases liability,common stock,and revenue accounts.
B)  Always decreases an account.
C)  Decreases asset and expense accounts,and increases liability,common stock,and revenue accounts.
D)  Is recorded on the left side of a T-account.
E)  Always increases an account.F) C) and D)
G) B) and E)

Question 14

The ________ is a collection of all accounts and their balances.

Accepted Answer

general le...

Question 15

A $130 credit to Supplies was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Accepted Answer

A)  Supplies,understated $130; Fees Earned,overstated $130.
B)  Supplies,understated $260; Fees Earned,overstated $130.
C)  Supplies,overstated $130; Fees Earned,overstated $130.
D)  Supplies,overstated $130; Fees Earned,understated $130.
E)  Supplies,overstated $260; Fees Earned,understated $130.F) A) and B)
G) C) and D)

Question 16

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Accepted Answer

The answer of For each of the accounts in the...

Question 17

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

Accepted Answer

A)  Accounts Payable; Cash; Supplies.
B)  Unearned Revenue; Accounts Payable; Dividends.
C)  Building; Prepaid Insurance; Supplies Expense.
D)  Cash; Prepaid Insurance; Equipment.
E)  Notes Payable; Cash; Dividends.F) B) and E)
G) A) and E)

Question 18

Match between columns
                        Premises: Double-entry accounting
Credit
Journal
Debit
Account
Trial balance
Posting
Ledger
Source documents
T-account

Accepted Answer

The Answer of A list of accounts and their balances is...

Question 19

The trial balance can serve as a replacement for the balance sheet,since total debits must equal total credits.

Accepted Answer

A) True 
 B)False

Question 20

Unearned revenues are generally:

Accepted Answer

A)  Revenues that have been earned and received in cash.
B)  Revenues that have been earned but not yet collected in cash.
C)  Liabilities created when a customer pays in advance for products or services before the revenue is earned.
D)  Recorded as an asset in the accounting records.
E)  Increases to common stock.F) None of the above
G) A) and E)

Exam 2: Accounting for Business Transactions

Unearned revenues are generally:

Correct Answer
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The ________ is a collection of all accounts and their balances.

Correct Answer
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general le...
View Answer

On December 3,the XFL Company paid $1,400 cash in salaries to employees.Prepare the general journal entry to record this transaction.

Correct Answer
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A credit entry:

Correct Answer
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A credit is used to record an increase in all of the following accounts except:

Correct Answer
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Correct Answer
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__X_ 1.Salary Payable was increased.
__X...
View Answer

A company paid $100 in cash dividends.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Correct Answer
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Unearned revenues are classified as liabilities.

Correct Answer
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A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :

Correct Answer
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Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

Correct Answer
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A debit:

Correct Answer
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In a seller's accounting records,________ are promises of payment waiting to be received from customers.

Correct Answer
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A $130 credit to Supplies was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Correct Answer
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Debit means increase and credit means decrease for all accounts.

Correct Answer
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On February 5,Kirkland Co.purchased equipment that cost $35,000.The firm paid $5,000 cash and signed a long-term note payable for $30,000.Show the general journal entry to record this transaction.

Correct Answer
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Correct Answer
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A double-entry accounting system is an accounting system:

Correct Answer
verified

The trial balance can serve as a replacement for the balance sheet,since total debits must equal total credits.

Correct Answer
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Match the following definitions and terms by placing the letter that identifies the best definition in the blank space next to the term.

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Correct Answer
verified

Exam 2: Accounting for Business Transactions

Unearned revenues are generally:

Correct AnswerverifiedShow Answer

The ________ is a collection of all accounts and their balances.

Correct Answerverifiedgeneral le...View AnswerShow Answer

On December 3,the XFL Company paid $1,400 cash in salaries to employees.Prepare the general journal entry to record this transaction.

Correct AnswerverifiedShow Answer

A credit entry:

Correct AnswerverifiedShow Answer

A credit is used to record an increase in all of the following accounts except:

Correct AnswerverifiedShow Answer

Correct Answerverified__X_ 1.Salary Payable was increased.__X...View AnswerShow Answer

A company paid $100 in cash dividends.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Correct AnswerverifiedShow Answer

Unearned revenues are classified as liabilities.

Correct AnswerverifiedShow Answer

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :

Correct AnswerverifiedShow Answer

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

Correct AnswerverifiedShow Answer

A debit:

Correct AnswerverifiedShow Answer

In a seller's accounting records,________ are promises of payment waiting to be received from customers.

Correct AnswerverifiedShow Answer

A $130 credit to Supplies was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Correct AnswerverifiedShow Answer

Debit means increase and credit means decrease for all accounts.

Correct AnswerverifiedShow Answer

On February 5,Kirkland Co.purchased equipment that cost $35,000.The firm paid $5,000 cash and signed a long-term note payable for $30,000.Show the general journal entry to record this transaction.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A double-entry accounting system is an accounting system:

Correct AnswerverifiedShow Answer

The trial balance can serve as a replacement for the balance sheet,since total debits must equal total credits.

Correct AnswerverifiedShow Answer

Match the following definitions and terms by placing the letter that identifies the best definition in the blank space next to the term.

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Correct AnswerverifiedShow Answer

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general le...
View Answer

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__X_ 1.Salary Payable was increased.
__X...
View Answer

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