Question 1

Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 33.3%.

Accepted Answer

A) True 
 B)False

Question 2

The debt ratio is calculated by dividing total assets by total liabilities.

Accepted Answer

A) True 
 B)False

Question 3

Double entry accounting requires that the impact of each transaction be recorded in at least two accounts.

Accepted Answer

A) True 
 B)False

Question 4

Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings. This error was not discovered before the journal entry was posted. What is the correcting entry?

Accepted Answer

A)   Debit Buildings and Credit Equipment for $50,000 each
B)   Debit Equipment and Credit Buildings for $50,000 each
C)   Debit Buildings and Credit Equipment for $100,000 each
D)   Debit Equipment and Credit Buildings for $100,000 each
E)   Debit Equipment for $100,000 and Credit Buildings for $50,000F) B) and D)
G) A) and D)

Question 5

A journal gives a complete record of each transaction in one place and shows the debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 6

What is total for the debits on the Trial Balance for Shiver Ice House?
  Common Stock..... $120,000 Accounts Payable.....$25,000  Cash...............$116,640  Accounts Receivable..$22,450  Supplies.......... $1,500 Office Equipment.....$23,300  Prepaid Rent......... $3,200 Unearned Revenue.... $4,152 Revenue............ $20,000 Utilities Expense....... $422 Retained Earnings... $30,000 Shaving Equipment... $31,640\begin{array}{lrr}	ext { Common Stock..... } \$ 120,000 & 	ext { Accounts Payable.....\$25,000 } \	ext { Cash...............\$116,640 } & 	ext { Accounts Receivable..\$22,450 } \	ext { Supplies.......... } \$ 1,500 & 	ext { Office Equipment.....\$23,300 } \	ext { Prepaid Rent......... } \$ 3,200 & 	ext { Unearned Revenue.... } \$ 4,152 \	ext { Revenue............ } \$ 20,000 & 	ext { Utilities Expense....... } \$ 422 \	ext { Retained Earnings... } \$ 30,000 & 	ext { Shaving Equipment... } \$ 31,640\end{array} Common Stock..... $120,000 Cash...............$116,640  Supplies.......... $1,500 Prepaid Rent......... $3,200 Revenue............ $20,000 Retained Earnings... $30,000​ Accounts Payable.....$25,000  Accounts Receivable..$22,450  Office Equipment.....$23,300  Unearned Revenue.... $4,152 Utilities Expense....... $422 Shaving Equipment... $31,640​

Accepted Answer

A)   $291,340
B)   $106,964
C)   $199,152
D)   $193,390
E)   $203.152 F) All of the above
G) A) and B)

Question 7

If the Debit and Credit column totals of a trial balance are equal, then:

Accepted Answer

A)   All transactions have been recorded correctly
B)   All entries from the journal have been posted to the ledger correctly
C)   All ledger account balances are correct
D)   The total debit entries and total credit entries are equal
E)   The balance sheet would be correctF) All of the above
G) D) and E)

Question 8

If a company pays cash to purchase land, the journal entry to record this transaction will include a debit to Cash.

Accepted Answer

A) True 
 B)False

Question 9

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 C)
G) A) and E)

Question 10

An account used to record the owner's investments in the business is called:

Accepted Answer

A)   Dividends
B)   Common Stock
C)   Revenue
D)   Expense
E)   LiabilityF) A) and D)
G) A) and C)

Question 11

_______________ is the process of transferring journal entry information to the ledger.

Accepted Answer

The answer of _______________ is the process of transferring journal...

Question 12

A company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that:

Accepted Answer

A)   The Office Supplies account balance will be overstated
B)   The trial balance will not balance
C)   The error will overstate the debits listed in the journal
D)   The total debits in the trial balance will be larger than the total credits
E)   All of the above effects will be caused by the errorF) A) and C)
G) A) and E)

Question 13

Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months contract in advance. Management Services' general journal entry to record this transaction will include a

Accepted Answer

A)   Debit to Unearned Management Fees for $60,000
B)   Credit to Management Fees Earned for $60,000
C)   Credit to Cash for $60,000
D)   Credit to Unearned Management Fees for $60,000
E)   Debit to Management Fees Earned for $60,000F) C) and D)
G) A) and E)

Question 14

The process of transferring general journal information to the ledger is:

Accepted Answer

A)   Double-entry accounting
B)   Posting
C)   Balancing an account
D)   Journalizing
E)   Not required unless debits do not equal creditsF) C) and E)
G) B) and C)

Question 15

Stride Rite has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio.

Accepted Answer

A)   38.6%
B)   13.4%
C)   34.9%
D)   25.9%
E)   14.9%F) C) and D)
G) B) and C)

Question 16

During March, a company had cash receipts of $2,300 and cash disbursements of $6,600. The March 31 cash balance was $2,780. What was the March 1 beginning cash balance?

Accepted Answer

A)   $1,520
B)   $7,080
C)   $4,300
D)   $8,900
E)   $11,680F) B) and D)
G) None of the above

Question 17

What is ending retained earnings for Shiver Ice House?
  Common Stock..... $120,000 Accounts Payable.....$25,000  Cash...............$116,640  Accounts Receivable..$22,450  Supplies.......... $1,500 Office Equipment.....$23,300  Prepaid Rent......... $3,200 Unearned Revenue.... $4,152 Revenue............ $20,000 Utilities Expense....... $422 Retained Earnings... $30,000 Shaving Equipment... $31,640\begin{array}{lrr}	ext { Common Stock..... } \$ 120,000 & 	ext { Accounts Payable.....\$25,000 } \	ext { Cash...............\$116,640 } & 	ext { Accounts Receivable..\$22,450 } \	ext { Supplies.......... } \$ 1,500 & 	ext { Office Equipment.....\$23,300 } \	ext { Prepaid Rent......... } \$ 3,200 & 	ext { Unearned Revenue.... } \$ 4,152 \	ext { Revenue............ } \$ 20,000 & 	ext { Utilities Expense....... } \$ 422 \	ext { Retained Earnings... } \$ 30,000 & 	ext { Shaving Equipment... } \$ 31,640\end{array} Common Stock..... $120,000 Cash...............$116,640  Supplies.......... $1,500 Prepaid Rent......... $3,200 Revenue............ $20,000 Retained Earnings... $30,000​ Accounts Payable.....$25,000  Accounts Receivable..$22,450  Office Equipment.....$23,300  Unearned Revenue.... $4,152 Utilities Expense....... $422 Shaving Equipment... $31,640​

Accepted Answer

A)   $19,578
B)   $29,578
C)   $23,728
D)   $49,578
E)   $45,000 F) A) and C)
G) B) and E)

Question 18

A record of the increases and decreases in a specific asset, liability, equity, revenue or expense is a(n) :

Accepted Answer

A)   Journal
B)   Posting
C)   Trial balance
D)   Account
E)   Chart of accountsF) A) and E)
G) B) and D)

Question 19

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

Accepted Answer

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

Question 20

Prepaid expenses are:

Accepted Answer

A)   Payments made for products and services that do not ever expire
B)   Classified as liabilities on the balance sheet
C)   Decreases in retained earnings
D)   Assets that represent prepayments of future expenses
E)   Promises of payments by customersF) B) and C)
G) A) and B)

Exam 2: Analyzing and Recording Transactions

An account used to record the owner's investments in the business is called:

Correct Answer
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If the Debit and Credit column totals of a trial balance are equal, then:

Correct Answer
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Stride Rite has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio.

Correct Answer
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Correct Answer
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Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings. This error was not discovered before the journal entry was posted. What is the correcting entry?

Correct Answer
verified

The process of transferring general journal information to the ledger is:

Correct Answer
verified

If a company pays cash to purchase land, the journal entry to record this transaction will include a debit to Cash.

Correct Answer
verified

During March, a company had cash receipts of $2,300 and cash disbursements of $6,600. The March 31 cash balance was $2,780. What was the March 1 beginning cash balance?

Correct Answer
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The debt ratio is calculated by dividing total assets by total liabilities.

Correct Answer
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Prepaid expenses are:

Correct Answer
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Correct Answer
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A journal gives a complete record of each transaction in one place and shows the debits and credits for each transaction.

Correct Answer
verified

Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months contract in advance. Management Services' general journal entry to record this transaction will include a

Correct Answer
verified

Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 33.3%.

Correct Answer
verified

A record of the increases and decreases in a specific asset, liability, equity, revenue or expense is a(n) :

Correct Answer
verified

_______________ is the process of transferring journal entry information to the ledger.

Correct Answer
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Source documents include all of the following except:

Correct Answer
verified

Double entry accounting requires that the impact of each transaction be recorded in at least two accounts.

Correct Answer
verified

A company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that:

Correct Answer
verified

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

Correct Answer
verified

Exam 2: Analyzing and Recording Transactions

An account used to record the owner's investments in the business is called:

Correct AnswerverifiedShow Answer

If the Debit and Credit column totals of a trial balance are equal, then:

Correct AnswerverifiedShow Answer

Stride Rite has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings. This error was not discovered before the journal entry was posted. What is the correcting entry?

Correct AnswerverifiedShow Answer

The process of transferring general journal information to the ledger is:

Correct AnswerverifiedShow Answer

If a company pays cash to purchase land, the journal entry to record this transaction will include a debit to Cash.

Correct AnswerverifiedShow Answer

During March, a company had cash receipts of $2,300 and cash disbursements of $6,600. The March 31 cash balance was $2,780. What was the March 1 beginning cash balance?

Correct AnswerverifiedShow Answer

The debt ratio is calculated by dividing total assets by total liabilities.

Correct AnswerverifiedShow Answer

Prepaid expenses are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A journal gives a complete record of each transaction in one place and shows the debits and credits for each transaction.

Correct AnswerverifiedShow Answer

Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months contract in advance. Management Services' general journal entry to record this transaction will include a

Correct AnswerverifiedShow Answer

Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 33.3%.

Correct AnswerverifiedShow Answer

A record of the increases and decreases in a specific asset, liability, equity, revenue or expense is a(n) :

Correct AnswerverifiedShow Answer

_______________ is the process of transferring journal entry information to the ledger.

Correct AnswerverifiedShow Answer

Source documents include all of the following except:

Correct AnswerverifiedShow Answer

Double entry accounting requires that the impact of each transaction be recorded in at least two accounts.

Correct AnswerverifiedShow Answer

A company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct Answer
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