Question 1

Expense accounts

Accepted Answer

A)   Are increased with credit entries
B)   Are increased with debit entries
C)   Normally have credit balances
D)   Are closed to the capital stock accountE) C) and D)
F) A) and C)

Question 2

On January 25, Blayne Corporation bought merchandise from a supplier for $3,600 on account. On February 20, Blayne paid the $3,600 owed to the supplier. The correct entry to record the purchase on January 25 is

Accepted Answer

A)     Cost of Goods Sold 3,600 Inventory 3,600\begin{array}{lc}	ext { Cost of Goods Sold } & 3,600 \	ext { Inventory } & 3,600\end{array} Cost of Goods Sold  Inventory ​3,6003,600​ 
B)     Accounts Payable 3,600 Inventory 3,600\begin{array} { c c } 	ext { Accounts Payable } & 3,600 \	ext { Inventory } & 3,600\end{array} Accounts Payable  Inventory ​3,6003,600​ 
C)   Inventory  3,600\quad 3,6003,600 Cost of Goods Sold  3,600\quad 3,6003,600 
D)   Inventory  3,600\quad 3,6003,600 Accounts Payable  3,600\quad 3,6003,600E) All of the above
F) A) and B)

Question 3

Each account is assigned a number. This systematic listing of all accounts is called a

Accepted Answer

A)   Trial Balance
B)   General Journal
C)   General Ledger
D)   Chart of AccountsE) C) and D)
F) All of the above

Question 4

A trial balance shows that

Accepted Answer

A)   No transactions have been omitted
B)   All transactions have been properly recorded
C)   Journal entries have not been posted to the wrong accounts
D)   Total debits equals total creditsE) C) and D)
F) B) and D)

Question 5

When a note payable is given to settle an existing account payable,

Accepted Answer

A)   There is no net change in assets, liabilities, or owners' equity
B)   Net assets are increased
C)   Net liabilities are increased
D)   Net owners' equity is increasedE) A) and B)
F) B) and C)

Question 6

Record the following transactions in journal entry form (omit explanations).

Accepted Answer

The answer of Record the following transactions in journal entry...

Question 7

Assuming that capital stock increased $5,000, net income was $100,000, and dividends were $120,000, if total assets increased by $25,000, what was the change in liabilities?

Accepted Answer

A)   Liabilities increased $40,000
B)   There was no change in liabilities
C)   Liabilities decreased $10,000
D)   The answer cannot be determined from the data givenE) A) and B)
F) A) and C) A

Question 8

Which of the following is the correct order for preparing a journal entry?

Accepted Answer

A)   Identify which accounts are involved; For each account, determine if it is increased or decreased; For each account, determine by how much it has changed
B)   For each account, determine if it is increased or decreased; For each account, determine by how much it has changed; Identify which accounts are involved
C)   For each account, determine if it is increased or decreased; Identify which accounts are involved; For each account, determine by how much it has changed
D)   Identify which accounts are involved; For each account, determine by how much it has changed; For each account, determine if it is increased or decreasedE) A) and D)
F) A) and C)

Question 9

Owners' equity accounts are decreased with

Accepted Answer

A)   Debit entries
B)   Credit entries
C)   Liabilities
D)   AssetsE) C) and D)
F) All of the above

Question 10

The entry to record the payment of a note with interest usually includes a

Accepted Answer

A)   Debit to Cash
B)   Credit to Note Payable
C)   Debit to Interest Expense
D)   Credit to Note ReceivableE) None of the above
F) A) and B)

Question 11

The balances in the General Ledger accounts of Courtney Company resulted in the following totals:
 
Total assets do not equal total liabilities plus owners' equity because the following errors were made:
  
Using the appropriate columns shown below, compute the correct balances in the asset, liability, and owners' equity accounts.

Accepted Answer

Total assets do not equal total liabilit...

Question 12

If a company purchased equipment for cash, the accounting equation would show a(n)

Accepted Answer

A)   Increase in assets and decrease in assets
B)   Decrease in liabilities and increase in assets
C)   Increase in liabilities and increase in assets
D)   Decrease in liabilities and decrease in assetsE) None of the above
F) All of the above

Question 13

When equipment is purchased with a cash down payment and a signed note for the balance, the net effect will be

Accepted Answer

A)   Only an increase in assets
B)   Only a decrease in liabilities
C)   Only a decrease in assets
D)   Both an increase in assets and an increase in liabilitiesE) C) and D)
F) B) and C)

Question 14

On July 24, Barkdull Inc. purchased $4,000 of inventory on account. On August 3, Barkdull, sold $2,000 of inventory for $1,000 cash and $2,000 on credit. The correct entry by Barkdull Inc. to record the purchase of inventory on July 24 is

Accepted Answer

A)     Inventory 4,000 Cash 4,000\begin{array} { c c } 	ext { Inventory } & 4,000 \	ext { Cash } & 4,000\end{array} Inventory  Cash ​4,0004,000​ 
B)     Accounts Payable 4,000 Inventory 4,000\begin{array} { c c } 	ext { Accounts Payable } & 4,000 \	ext { Inventory } & 4,000\end{array} Accounts Payable  Inventory ​4,0004,000​ 
C)     Inventory 4,000 Accounts Payable 4,000\begin{array} { l l l } 	ext { Inventory } & 4,000 & \	ext { Accounts Payable } & & 4,000\end{array} Inventory  Accounts Payable ​4,000​4,000​ 
D)   Cash  4,000\quad 4,0004,000 Inventory 4,000\quad 4,0004,000E) All of the above
F) None of the above

Question 15

Give the effect the following transactions would have on EACH side of the accounting equation. Be specific in the description of the accounts. The first transaction's effect is noted as an example for you to follow.

Accepted Answer

The answer of Give the effect the following transactions would...

Question 16

If a company paid off a loan, the accounting equation would show a(n)

Accepted Answer

A)   Increase in assets and decrease in liabilities
B)   Decrease in assets and decrease in liabilities
C)   Increase in liabilities and decrease in assets
D)   Increase in assets and increase in liabilitiesE) None of the above
F) A) and B) B

Question 17

During March, Randolph Corporation completed the following transactions:  As a result of these transactions, Randolph's total assets would

Accepted Answer

A)   Increase by $56,000
B)   Increase by $40,100
C)   Increase by $35,900
D)   Increase by $20,100E) A) and B)
F) None of the above

Question 18

A journal entry that includes more than two accounts is called a(n)

Accepted Answer

A)   simple journal entry
B)   compound journal entry
C)   complex journal entry
D)   essential journal entryE) C) and D)
F) None of the above

Question 19

The basic accounting equation

Accepted Answer

A)   Is out of balance after each journal entry
B)   Should always balance
C)   Is balanced only at the end of the period with closing entries
D)   Is balanced only at the end of the period with adjusting entriesE) B) and C)
F) A) and D) B

Question 20

Which of the following accounts is decreased with a debit?

Accepted Answer

A)   Rent Expense
B)   Retained Earnings
C)   Equipment
D)   Accounts ReceivableE) B) and C)
F) A) and B)

Exam 3: The Accounting Cycle: The Mechanics of Accounting

Expense accounts

Correct Answer
verified

On January 25, Blayne Corporation bought merchandise from a supplier for $3,600 on account. On February 20, Blayne paid the $3,600 owed to the supplier. The correct entry to record the purchase on January 25 is

Correct Answer
verified

Each account is assigned a number. This systematic listing of all accounts is called a

Correct Answer
verified

A trial balance shows that

Correct Answer
verified

When a note payable is given to settle an existing account payable,

Correct Answer
verified

Record the following transactions in journal entry form (omit explanations).

Correct Answer
verified

Assuming that capital stock increased $5,000, net income was $100,000, and dividends were $120,000, if total assets increased by $25,000, what was the change in liabilities?

Correct Answer
verified
A

Which of the following is the correct order for preparing a journal entry?

Correct Answer
verified

Owners' equity accounts are decreased with

Correct Answer
verified

The entry to record the payment of a note with interest usually includes a

Correct Answer
verified

Correct Answer
verified
Total assets do not equal total liabilit...
View Answer

If a company purchased equipment for cash, the accounting equation would show a(n)

Correct Answer
verified

When equipment is purchased with a cash down payment and a signed note for the balance, the net effect will be

Correct Answer
verified

On July 24, Barkdull Inc. purchased $4,000 of inventory on account. On August 3, Barkdull, sold $2,000 of inventory for $1,000 cash and $2,000 on credit. The correct entry by Barkdull Inc. to record the purchase of inventory on July 24 is

Correct Answer
verified

Give the effect the following transactions would have on EACH side of the accounting equation. Be specific in the description of the accounts. The first transaction's effect is noted as an example for you to follow.

Correct Answer
verified

If a company paid off a loan, the accounting equation would show a(n)

Correct Answer
verified
B

During March, Randolph Corporation completed the following transactions: As a result of these transactions, Randolph's total assets would

Correct Answer
verified

A journal entry that includes more than two accounts is called a(n)

Correct Answer
verified

The basic accounting equation

Correct Answer
verified
B

Which of the following accounts is decreased with a debit?

Correct Answer
verified

Exam 3: The Accounting Cycle: The Mechanics of Accounting

Expense accounts

Correct AnswerverifiedShow Answer

On January 25, Blayne Corporation bought merchandise from a supplier for $3,600 on account. On February 20, Blayne paid the $3,600 owed to the supplier. The correct entry to record the purchase on January 25 is

Correct AnswerverifiedShow Answer

Each account is assigned a number. This systematic listing of all accounts is called a

Correct AnswerverifiedShow Answer

A trial balance shows that

Correct AnswerverifiedShow Answer

When a note payable is given to settle an existing account payable,

Correct AnswerverifiedShow Answer

Record the following transactions in journal entry form (omit explanations).

Correct AnswerverifiedShow Answer

Assuming that capital stock increased $5,000, net income was $100,000, and dividends were $120,000, if total assets increased by $25,000, what was the change in liabilities?

Correct AnswerverifiedA

Which of the following is the correct order for preparing a journal entry?

Correct AnswerverifiedShow Answer

Owners' equity accounts are decreased with

Correct AnswerverifiedShow Answer

The entry to record the payment of a note with interest usually includes a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTotal assets do not equal total liabilit...View AnswerShow Answer

If a company purchased equipment for cash, the accounting equation would show a(n)

Correct AnswerverifiedShow Answer

When equipment is purchased with a cash down payment and a signed note for the balance, the net effect will be

Correct AnswerverifiedShow Answer

On July 24, Barkdull Inc. purchased $4,000 of inventory on account. On August 3, Barkdull, sold $2,000 of inventory for $1,000 cash and $2,000 on credit. The correct entry by Barkdull Inc. to record the purchase of inventory on July 24 is

Correct AnswerverifiedShow Answer

Give the effect the following transactions would have on EACH side of the accounting equation. Be specific in the description of the accounts. The first transaction's effect is noted as an example for you to follow.

Correct AnswerverifiedShow Answer

If a company paid off a loan, the accounting equation would show a(n)

Correct AnswerverifiedB

During March, Randolph Corporation completed the following transactions: As a result of these transactions, Randolph's total assets would

Correct AnswerverifiedShow Answer

A journal entry that includes more than two accounts is called a(n)

Correct AnswerverifiedShow Answer

The basic accounting equation

Correct AnswerverifiedB

Which of the following accounts is decreased with a debit?

Correct AnswerverifiedShow Answer

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A

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Total assets do not equal total liabilit...
View Answer

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B

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B

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