Question 1

What would be the appropriate entry for the following transaction? 
Bill Co.performed $5,200 in consulting services on account.

Accepted Answer

A)  Credit to Cash, debit to Accounts Receivable.
B)  Debit to Service Revenue, debit to Cash.
C)  Debit to Accounts Receivable, credit to Cash.
D)  Debit to Service Revenue, credit to Cash.
E)  Debit to Accounts Receivable, credit to Service Revenue.F) A) and B)
G) B) and D)

Question 2

Source documents include all of the following except:

Accepted Answer

A)  Sales tickets
B)  Ledgers
C)  Checks
D)  Purchase orders
E)  Bank statementsF) A) and E)
G) B) and D)

Question 3

IFRS requires that companies report four financial statements with explanatory notes: balance sheet; income statement; statement of changes in equity, and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 4

On September 30, the Cash account of Value Company had a normal balance of $5,000.During September, the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Accepted Answer

A)  $0 balance
B)  $4,300 debit balance
C)  $4,300 credit balance
D)  $5,700 debit balance
E)  $5,700 credit balanceF) A) and B)
G) B) and E)

Question 5

A balance column account is:

Accepted Answer

A)  An account entered on the balance sheet.
B)  An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted.
C)  An alternate name for the retained earnings account.
D)  An account used to record the transfers of assets from a business to its stockholders.
E)  A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.F) A) and E)
G) C) and D)

Question 6

Transactions are first recorded in the ledger.

Accepted Answer

A) True 
 B)False

Question 7

A _______________ is a list of all the accounts used by a company and their identification codes.

Accepted Answer

The answer of A _______________ is a list of all...

Question 8

The posting process is the link between the _______________ and the _____________.

Accepted Answer

The answer of The posting process is the link between...

Question 9

Increases in assets are _______________, while increases in liabilities are _______________.

Accepted Answer

The answer of Increases in assets are _______________, while increases...

Question 10

Which of the following statements is incorrect?

Accepted Answer

A)  The normal balance of accounts receivable is a debit.
B)  The normal balance of dividends is a debit.
C)  The normal balance of unearned revenues is a credit.
D)  The normal balance of an expense account is a credit.
E)  The normal balance of common stock is a credit.F) D) and E)
G) A) and E)

Question 11

Another name for the balance sheet is the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 12

A column in journal and ledger accounts used to cross reference journal and ledger entries is the:

Accepted Answer

A)  Account balance column
B)  Debit column
C)  Posting reference column
D)  Credit column
E)  Description columnF) A) and D)
G) C) and E)

Question 13

Generally, the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets, liabilities, equity, revenues, and expenses.

Accepted Answer

A) True 
 B)False

Question 14

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

Accepted Answer

A) True 
 B)False

Question 15

Of the following errors, which one will cause the trial balance to be out of balance?

Accepted Answer

A)  A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense.
B)  A $100 cash receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable.
C)  A $75 cash receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash.
D)  A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.
E)  An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.F) B) and D)
G) All of the above

Question 16

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

Accepted Answer

A) True 
 B)False

Question 17

A credit is used to record:

Accepted Answer

A)  An increase in an expense account.
B)  An increase in an asset account.
C)  An increase in an unearned revenue account.
D)  A decrease in a revenue account.
E)  A decrease to retained earnings.F) B) and E)
G) B) and D)

Question 18

The accounting process begins with:

Accepted Answer

A)  Analysis of business transactions and events.
B)  Preparation of financial statements and other reports.
C)  Summarizing the recorded effects of business transactions.
D)  Presentation of financial information to decision-makers.
E)  Preparation of the trial balance.F) A) and B)
G) C) and E)

Question 19

For each of the following errors, indicate on the table below the amount by which the trial balance will be out of balance and which trial balance column (debit or credit)will have the larger total as a result of the error.
a.$100 debit to Cash was debited to the Cash account twice.
b.$1,900 credit to Sales was posted as a $190 credit.
c.$5,000 debit to Office Equipment was debited to Office Supplies.
d.$625 debit to Prepaid Insurance was posted as a $62.50 debit.
e.$520 credit to Accounts Payable was not posted.
 $\begin{array}{|c|c|c|}
\hline \text { Error } & \begin{array}{c}
\text { Amount Out of } \
\text { Balance }
\end{array} & \begin{array}{c}
\text { Column Having } \
\text { Larger Total }
\end{array} \
\hline \text { a. } & \
\hline \text { b. } & \
\hline \text { c. } &  \
\hline \text { d. } & \
\hline \text { e. } &  \
\hline
\end{array}$

Accepted Answer

None...

Question 20

A company had the following account balances at year-end: Cash……………………………………… $30,000
Accounts receivable……………………… 32,000
Accounts payable………………………… 20,000
Fees earned…………………………………..65,000
Rent expense…………………………………15,000
Insurance expense……………………………..4,800
Supplies………………………………………..5,000
Common stock……………………………….5,000
Retained earnings………………………….....14,800
Dividends………………………………… 18,000
If all of the accounts have normal balances, what are the total debits on the trial balance?

Accepted Answer

A)  $45,200
B)  $67,000
C)  $104,800
D)  $209,600
E)  $186,600F) A) and B)
G) A) and C)

Exam 15: Basic Accounting for Transactions

Another name for the balance sheet is the statement of financial position.

Correct Answer
verified

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

Correct Answer
verified

A _______________ is a list of all the accounts used by a company and their identification codes.

Correct Answer
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Which of the following statements is incorrect?

Correct Answer
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A balance column account is:

Correct Answer
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The posting process is the link between the ___ and the _.

Correct Answer
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A column in journal and ledger accounts used to cross reference journal and ledger entries is the:

Correct Answer
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Correct Answer
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None...
View Answer

Increases in assets are _, while increases in liabilities are _.

Correct Answer
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Correct Answer
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What would be the appropriate entry for the following transaction? Bill Co.performed $5,200 in consulting services on account.

Correct Answer
verified

Of the following errors, which one will cause the trial balance to be out of balance?

Correct Answer
verified

The accounting process begins with:

Correct Answer
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IFRS requires that companies report four financial statements with explanatory notes: balance sheet; income statement; statement of changes in equity, and statement of cash flows.

Correct Answer
verified

Transactions are first recorded in the ledger.

Correct Answer
verified

Generally, the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets, liabilities, equity, revenues, and expenses.

Correct Answer
verified

Source documents include all of the following except:

Correct Answer
verified

On September 30, the Cash account of Value Company had a normal balance of $5,000.During September, the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Correct Answer
verified

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

Correct Answer
verified

A credit is used to record:

Correct Answer
verified

Exam 15: Basic Accounting for Transactions

Another name for the balance sheet is the statement of financial position.

Correct AnswerverifiedShow Answer

When a company provides services for which cash will not be received until some future date, the company should record unearned revenue for the amount charged to the customer.

Correct AnswerverifiedShow Answer

A _______________ is a list of all the accounts used by a company and their identification codes.

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect?

Correct AnswerverifiedShow Answer

A balance column account is:

Correct AnswerverifiedShow Answer

The posting process is the link between the _______________ and the _____________.

Correct AnswerverifiedShow Answer

A column in journal and ledger accounts used to cross reference journal and ledger entries is the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNone...View AnswerShow Answer

Increases in assets are _______________, while increases in liabilities are _______________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What would be the appropriate entry for the following transaction? Bill Co.performed $5,200 in consulting services on account.

Correct AnswerverifiedShow Answer

Of the following errors, which one will cause the trial balance to be out of balance?

Correct AnswerverifiedShow Answer

The accounting process begins with:

Correct AnswerverifiedShow Answer

IFRS requires that companies report four financial statements with explanatory notes: balance sheet; income statement; statement of changes in equity, and statement of cash flows.

Correct AnswerverifiedShow Answer

Transactions are first recorded in the ledger.

Correct AnswerverifiedShow Answer

Generally, the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets, liabilities, equity, revenues, and expenses.

Correct AnswerverifiedShow Answer

Source documents include all of the following except:

Correct AnswerverifiedShow Answer

On September 30, the Cash account of Value Company had a normal balance of $5,000.During September, the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Correct AnswerverifiedShow Answer

A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

Correct AnswerverifiedShow Answer

A credit is used to record:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The posting process is the link between the ___ and the _.

Correct Answer
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Correct Answer
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Correct Answer
verified
None...
View Answer

Increases in assets are _, while increases in liabilities are _.

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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