Question 1

Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January 2012: 1. Issued 10,000 shares of common stock for $15,000 cash.
2)  Purchased land for $12,000, signing a note payable for the full amount.
3)  Purchased office equipment for $1,200 cash.
4)  Received cash of $14,000 for services provided to customers during the month.
5)  Purchased $300 of office supplies on account.
6)  Paid employees $10,000 for their first month's salaries.
How many of these transactions increased Gotebo's liabilities?

Accepted Answer

A)   Four.
B)   Three.
C)   Two.
D)   One.E) C) and D)
F) A) and B)

Question 2

Consider the following accounts: Utilities Expense
Accounts Payable
Service Revenue
Common Stock
How many of these accounts are increased with debits?

Accepted Answer

A)   One.
B)   Two.
C)   Three.
D)   Four.E) A) and B)
F) All of the above

Question 3

For each transaction, there must be at least one debit amount and one credit amount.

Accepted Answer

A) True 
 B)False

Question 4

A company pays $5,400 for maintenance in the current period. Record the transaction.

Accepted Answer

The answer of A company pays $5,400 for maintenance in...

Question 5

After we've posted transactions to the general ledger accounts, the sum of the accounts with debit balances should equal the sum of the accounts with credit balances.

Accepted Answer

A) True 
 B)False

Question 6

Posting is the process of:

Accepted Answer

A)   Analyzing the impact of the transaction on the accounting equation.
B)   Obtaining information about external transactions from source documents.
C)   Transferring the debit and credit information from the journal to individual accounts in the general ledger.
D)   Listing all accounts and their balances at a particular date.E) B) and D)
F) A) and B)

Question 7

A company incurs employee salaries of $4,200 but does not pay them. Record the transaction.

Accepted Answer

The answer of A company incurs employee salaries of $4,200...

Question 8

Describe the difference between external events and internal events and give two examples of each.

Accepted Answer

External events involve an exchange betw...

Question 9

A company provides services to customers for $2,400 cash. Record the transaction.

Accepted Answer

The answer of A company provides services to customers for...

Question 10

Purchasing supplies on account increases the balance of the Accounts Receivable account.

Accepted Answer

A) True 
 B)False

Question 11

If a company provides services on account, which of the following is true?

Accepted Answer

A)   Expenses increase.
B)   Liabilities increase.
C)   Stockholders' equity increases.
D)   Assets decrease.E) None of the above
F) C) and D)

Question 12

Purchasing office supplies on account causes assets to increase and liabilities to increase.

Accepted Answer

A) True 
 B)False

Question 13

Bostel wanted to expand the size of its warehouse in order to generate more profits. The company decided to purchase the building adjacent to its existing warehouse. The company pays for the building by borrowing from the bank. The purchase would be recorded as:

Accepted Answer

A)   Debit Cash; credit Notes Payable.
B)   Debit Buildings; credit Cash.
C)   Debit Buildings; Credit Notes Payable.
D)   Debit Cash and Buildings; Credit Notes Payable.E) B) and C)
F) None of the above

Question 14

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ List of all accounts and their balances after external transactions are recorded.

Accepted Answer

A)  Assets
B)  Debit
C)  Journal entry
D)  Liabilities
E)  RevenuesF) ExpensesG) CreditH) General ledgerI) Trial balanceJ) DividendsK) A) and G)
L) B) and C)

Question 15

When a company provides services on account, the accounting equation would be affected as follows:

Accepted Answer

A)   Assets increase.
B)   Revenues increase.
C)   Assets increase and liabilities decrease.
D)   Assets increase and stockholders' equity increases.E) None of the above
F) A) and B)

Question 16

When cash payments are made to stockholders, what is the effect on the company's accounts?

Accepted Answer

A)   Cash decreases and dividends increase.
B)   Cash increases and dividends decrease.
C)   Cash decreases and common stock decreases.
D)   Cash increases and common stock increases.E) A) and D)
F) None of the above

Question 17

Expenses normally carry a _______ balance and are shown in the _________.

Accepted Answer

A)   Debit; Statement of stockholders' equity
B)   Debit; Income statement
C)   Credit; Balance sheet
D)   Debit; Balance SheetE) A) and B)
F) None of the above

Question 18

A company collects $4,000 cash from customers for services previously provided on account. Record the transaction.

Accepted Answer

The answer of A company collects $4,000 cash from customers...

Question 19

Purchasing supplies for cash has what effect on the accounting equation?

Accepted Answer

A)   Increase assets.
B)   Decrease stockholders' equity.
C)   Decrease liabilities.
D)   No effect.E) C) and D)
F) A) and B)

Question 20

Which of the following is NOT possible for a business transaction?

Accepted Answer

A)   Increase assets and decrease revenue.
B)   Decrease assets and increase expense.
C)   Increase liabilities and increase expense.
D)   Decrease liabilities and increase revenue.E) B) and C)
F) A) and D)

Exam 2: The Accounting Information System

A company pays $5,400 for maintenance in the current period. Record the transaction.

Correct Answer
verified

Describe the difference between external events and internal events and give two examples of each.

Correct Answer
verified
External events involve an exchange betw...
View Answer

Purchasing office supplies on account causes assets to increase and liabilities to increase.

Correct Answer
verified

Consider the following accounts: Utilities Expense Accounts Payable Service Revenue Common Stock How many of these accounts are increased with debits?

Correct Answer
verified

Purchasing supplies on account increases the balance of the Accounts Receivable account.

Correct Answer
verified

Bostel wanted to expand the size of its warehouse in order to generate more profits. The company decided to purchase the building adjacent to its existing warehouse. The company pays for the building by borrowing from the bank. The purchase would be recorded as:

Correct Answer
verified

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided. -____ List of all accounts and their balances after external transactions are recorded.

Correct Answer
verified

Expenses normally carry a _ balance and are shown in the ___.

Correct Answer
verified

Correct Answer
verified

A company collects $4,000 cash from customers for services previously provided on account. Record the transaction.

Correct Answer
verified

After we've posted transactions to the general ledger accounts, the sum of the accounts with debit balances should equal the sum of the accounts with credit balances.

Correct Answer
verified

Purchasing supplies for cash has what effect on the accounting equation?

Correct Answer
verified

For each transaction, there must be at least one debit amount and one credit amount.

Correct Answer
verified

When a company provides services on account, the accounting equation would be affected as follows:

Correct Answer
verified

Which of the following is NOT possible for a business transaction?

Correct Answer
verified

A company incurs employee salaries of $4,200 but does not pay them. Record the transaction.

Correct Answer
verified

If a company provides services on account, which of the following is true?

Correct Answer
verified

Posting is the process of:

Correct Answer
verified

When cash payments are made to stockholders, what is the effect on the company's accounts?

Correct Answer
verified

A company provides services to customers for $2,400 cash. Record the transaction.

Correct Answer
verified

Exam 2: The Accounting Information System

A company pays $5,400 for maintenance in the current period. Record the transaction.

Correct AnswerverifiedShow Answer

Describe the difference between external events and internal events and give two examples of each.

Correct AnswerverifiedExternal events involve an exchange betw...View AnswerShow Answer

Purchasing office supplies on account causes assets to increase and liabilities to increase.

Correct AnswerverifiedShow Answer

Consider the following accounts: Utilities Expense Accounts Payable Service Revenue Common Stock How many of these accounts are increased with debits?

Correct AnswerverifiedShow Answer

Purchasing supplies on account increases the balance of the Accounts Receivable account.

Correct AnswerverifiedShow Answer

Bostel wanted to expand the size of its warehouse in order to generate more profits. The company decided to purchase the building adjacent to its existing warehouse. The company pays for the building by borrowing from the bank. The purchase would be recorded as:

Correct AnswerverifiedShow Answer

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the best term by placing the letter designating the term in the space provided. -____ List of all accounts and their balances after external transactions are recorded.

Correct AnswerverifiedShow Answer

Expenses normally carry a _______ balance and are shown in the _________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A company collects $4,000 cash from customers for services previously provided on account. Record the transaction.

Correct AnswerverifiedShow Answer

After we've posted transactions to the general ledger accounts, the sum of the accounts with debit balances should equal the sum of the accounts with credit balances.

Correct AnswerverifiedShow Answer

Purchasing supplies for cash has what effect on the accounting equation?

Correct AnswerverifiedShow Answer

For each transaction, there must be at least one debit amount and one credit amount.

Correct AnswerverifiedShow Answer

When a company provides services on account, the accounting equation would be affected as follows:

Correct AnswerverifiedShow Answer

Which of the following is NOT possible for a business transaction?

Correct AnswerverifiedShow Answer

A company incurs employee salaries of $4,200 but does not pay them. Record the transaction.

Correct AnswerverifiedShow Answer

If a company provides services on account, which of the following is true?

Correct AnswerverifiedShow Answer

Posting is the process of:

Correct AnswerverifiedShow Answer

When cash payments are made to stockholders, what is the effect on the company's accounts?

Correct AnswerverifiedShow Answer

A company provides services to customers for $2,400 cash. Record the transaction.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
External events involve an exchange betw...
View 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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Correct Answer
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Expenses normally carry a _ balance and are shown in the ___.

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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