Question 1

A debit to an account balance always results in the balance increasing.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not an asset account?

Accepted Answer

A)   Supplies.
B)   Accounts Payable.
C)   Equipment.
D)   Accounts Receivable.E) A) and B)
F) A) and C)

Question 3

Selling common stock for cash is recorded with a debit to common stock.

Accepted Answer

A) True 
 B)False

Question 4

Using the notion that the accounting equation (Assets = Liabilities + Stockholders' Equity) must remain in balance, indicate whether each of the following transactions is possible.
(a) Cash decreases; Accounts Payable decreases.
(b) Salaries Expense increases; Salaries Payable decreases.
(c) Accounts Receivable decreases; Service Revenue increases.

Accepted Answer

(a) Yes; (...

Question 5

The Dividends account increases with a credit and decreases with a debit.

Accepted Answer

A) True 
 B)False

Question 6

A journal provides a chronological record of all transactions affecting a firm.

Accepted Answer

A) True 
 B)False

Question 7

The following amounts are reported in the ledger of Mariah Company:   Assets $80,000 Liabilities 36,000 Retained Earnings 12,000\begin{array} { l r } 	ext { Assets } & \$ 80,000 \	ext { Liabilities } & 36,000 \	ext { Retained Earnings } & 12,000\end{array} Assets  Liabilities  Retained Earnings ​$80,00036,00012,000​  What is the balance in the Common Stock account?

Accepted Answer

A)   $44,000.
B)   $32,000.
C)   $48,000.
D)   $42,000. E) A) and C)
F) None of the above

Question 8

An expense has what effect on the accounting equation?

Accepted Answer

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

Question 9

A trial balance can best be explained as a list of:

Accepted Answer

A)   The income statement accounts used to calculate net income.
B)   Revenue, expense, and dividend accounts used to show the balances of the components of retained earnings.
C)   The balance sheet accounts used to show the equality of the accounting equation.
D)   All accounts and their balances at a particular date.E) A) and B)
F) C) and D)

Question 10

Consider the following transactions for Mittel Corporation:
a. Sell common stock for $10,000.
b. Purchase equipment for $11,500 cash.
c. Pay employee salaries of $3,700.
d. Provides services to customers for $6,200 cash.
1. Post these transactions to the Cash T-account. Assume the balance of Cash before these transactions is $4,200.
2. Calculate the ending balance of the Cash account.

Accepted Answer

The answer of Consider the following transactions for Mittel Corporation:
a....

Question 11

Which of the following is not possible when recording a transaction?

Accepted Answer

A)   Liabilities increase and assets decrease.
B)   Stockholders' equity increases and assets increase.
C)   One asset increases and another asset decreases.
D)   Stockholders' equity decreases and assets decrease.E) None of the above
F) All of the above

Question 12

A trial balance is a list of all accounts and their balances at a particular date, showing that assets equal liabilities.

Accepted Answer

A) True 
 B)False

Question 13

The following transactions occur for the Hamilton Manufacturers.
(a) Provide services to customers on account for $4,500.
(b) Purchase equipment by signing a note with the bank for $10,000.
(c) Pay advertising of $1,500 for the current month.
Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.

Accepted Answer

The answer of The following transactions occur for the Hamilton...

Question 14

Posting transactions to the T-accounts involve:

Accepted Answer

A)   Analyzing source documents to determine the effects of transactions on the company's accounts.
B)   Listing all accounts and their balances at a particular date to ensure that debits equal credits.
C)   Preparing a chronological record of all transactions affecting the company.
D)   Transferring debit and credit information from the journal to the accounts in the general ledger.E) A) and B)
F) C) and D)

Question 15

Daniel Dino Restaurant owes workers' salaries of $15,000. This would be recorded as:

Accepted Answer

A)   Debit Salaries Expense, credit Cash.
B)   Debit Salaries Payable, credit Cash.
C)   Debit Salaries Expense, credit Salaries Payable.
D)   Debit Salaries Payable, credit Salaries Expense.E) C) and D)
F) B) and C)

Question 16

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.
-____ Refers to the right side of an account.

Accepted Answer

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

Question 17

A company purchases supplies on account for $1,700. Indicate the amount of increases and decreases in the accounting equation.

Accepted Answer

The answer of A company purchases supplies on account for...

Question 18

Providing services to customers is recorded with a debit to Service Revenue.

Accepted Answer

A) True 
 B)False

Question 19

Expenses have the effect of decreasing retained earnings.

Accepted Answer

A) True 
 B)False

Question 20

After recording each transaction, total assets must equal total liabilities plus stockholders' equity.

Accepted Answer

A) True 
 B)False

Exam 2: The Accounting Information System

A journal provides a chronological record of all transactions affecting a firm.

Correct Answer
verified

The Dividends account increases with a credit and decreases with a debit.

Correct Answer
verified

Expenses have the effect of decreasing retained earnings.

Correct Answer
verified

Which of the following is not an asset account?

Correct Answer
verified

A debit to an account balance always results in the balance increasing.

Correct Answer
verified

Selling common stock for cash is recorded with a debit to common stock.

Correct Answer
verified

Daniel Dino Restaurant owes workers' salaries of $15,000. This would be recorded as:

Correct Answer
verified

After recording each transaction, total assets must equal total liabilities plus stockholders' equity.

Correct Answer
verified

An expense has what effect on the accounting equation?

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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(a) Yes; (...
View Answer

Providing services to customers is recorded with a debit to Service Revenue.

Correct Answer
verified

A trial balance is a list of all accounts and their balances at a particular date, showing that assets equal liabilities.

Correct Answer
verified

A trial balance can best be explained as a list of:

Correct Answer
verified

A company purchases supplies on account for $1,700. Indicate the amount of increases and decreases in the accounting equation.

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. -____ Refers to the right side of an account.

Correct Answer
verified

Posting transactions to the T-accounts involve:

Correct Answer
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The following amounts are reported in the ledger of Mariah Company: $\begin{array} { l r } \text { Assets } & \$ 80,000 \\\text { Liabilities } & 36,000 \\\text { Retained Earnings } & 12,000\end{array}$ What is the balance in the Common Stock account?

Correct Answer
verified

Which of the following is not possible when recording a transaction?

Correct Answer
verified

Exam 2: The Accounting Information System

A journal provides a chronological record of all transactions affecting a firm.

Correct AnswerverifiedShow Answer

The Dividends account increases with a credit and decreases with a debit.

Correct AnswerverifiedShow Answer

Expenses have the effect of decreasing retained earnings.

Correct AnswerverifiedShow Answer

Which of the following is not an asset account?

Correct AnswerverifiedShow Answer

A debit to an account balance always results in the balance increasing.

Correct AnswerverifiedShow Answer

Selling common stock for cash is recorded with a debit to common stock.

Correct AnswerverifiedShow Answer

Daniel Dino Restaurant owes workers' salaries of $15,000. This would be recorded as:

Correct AnswerverifiedShow Answer

After recording each transaction, total assets must equal total liabilities plus stockholders' equity.

Correct AnswerverifiedShow Answer

An expense has what effect on the accounting equation?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverified(a) Yes; (...View AnswerShow Answer

Providing services to customers is recorded with a debit to Service Revenue.

Correct AnswerverifiedShow Answer

A trial balance is a list of all accounts and their balances at a particular date, showing that assets equal liabilities.

Correct AnswerverifiedShow Answer

A trial balance can best be explained as a list of:

Correct AnswerverifiedShow Answer

A company purchases supplies on account for $1,700. Indicate the amount of increases and decreases in the accounting equation.

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. -____ Refers to the right side of an account.

Correct AnswerverifiedShow Answer

Posting transactions to the T-accounts involve:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not possible when recording a transaction?

Correct AnswerverifiedShow Answer

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(a) Yes; (...
View 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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