#1 Z-Co purchased a computer, on credit, for $3,000 and full payment is due in 60 days. The appropriate journal entry was made on the day of the purchase. Which is the proper journal entry to record the payment owed for the computer? a. Debit Accounts Receivable, $3,000; credit Equipment, $3,000 b. Debit Equipment, $3,000; credit Accounts Payable, $3,000 c. Debit Accounts Payable, $3,000; credit Cash, $3,000 d. Debit Equipment, $3,000; credit Cash, $3,000 Un June 1, Morgan & Morgan performed services for Ross Jergens on account, $20,000. Morgan & Morgan performed services for Mike Geiss on account, $16,800, on June 5. On June 15, Ross paid one-half of the amount owed to Morgan & Morgan. Mike Geiss paid the entire amount that he owed to Morgan & Morgan on June 25. What is the balance in Accounts Receivable on June 30? a. $26,800, credit b. $10,000, debit c. $36,800, debit d. Not enough information. The amounts would have been recorded to Accounts Payable, not Accounts Receivable. #3 On June 1, Techie Toys had a $500 credit balance in Accounts Payable. During the month, the company purchased office supplies for $1,750. On June 20, it had an ending credit balance of $300 in Accounts Payable. What amount did Techie Toys pay to its suppliers during June? a. $2,250 was paid to suppliers during the month of June. b. $1,750 was paid to suppliers during the month of June. c. $1,950 was paid to suppliers during the month of June. d. Not enough information is available. #4 At the beginning of June, Window Washers, Inc., received $2,500 cash from inventors in exchange for common stock. During June, Window Washers, Inc., washes all of the windows on the Crystal Office Building and receives $1,750 cash for the service. What is the amount of retained earnings after these transactions? a. $4,250 b. $750 c. $1,750 d. $2,500 #5 A compound journal entry is a journal entry that a. covers more than one accounting period. b. includes both income statement and balance sheet accounts. c. combines two or more previously recorded journal entries. d. affects more than two accounts. #6 The principle is used to determine when revenue is recorded and reported. a. conservatism b. revenue recognition c. expense recognition d. time period #7 In order for an event to be recorded, or recognized, in the accounting system, the items making up the event must a. represent a signed contract. b. be conservative. O c. impact the company's sales. O d. impact a financial statement element, #8 Which of the following statements is true about the posting process? a. Only debits are posted to the ledger account. O b. Only credits are posted to the ledger account. O c. The account number is recorded in the Posting Reference column of the journal, and the journal page number is recorded in the Posting Reference column of the ledger. d. The account number is recorded in the Posting Reference column of the ledger, and the ledger page number is recorded in the Posting Reference column of the journal. #9 Rhyno Inc. purchased supplies on account for $1,300. An intern recorded the journal entry as a debit to Supplies, $1,300 and a credit to Accounts Receivable, $1,300. Which of the following is true? a. The total credits on the trial balance will be overstated. b. The total debits on the trial balance will be overstated. c. The total credits on the trial balance will be understated. d. The transaction will not affect the equality of debits and credits. #10 Each transaction has a dual effect on the accounting equation. This means that O a. both sides of the equation will increase. b. an increase will be cancelled by a corresponding decrease. O c. the accounting equation will be impacted twice by each transaction. O d. the left side of the equation increases while the right side decreases. #11 Which of the following is NOT true of journal entries? a. If debits equal credits for each journal entry, then all journal entries must be correct. b. Total debits must equal total credits. O c. When more than two accounts are affected, the entry is known as a compound journal entry. d. Because all parts of the transaction appear together, it is easy to see whether equal debits and credits have been entered. #12 The accounts are listed in a trial balance in which of the following orders? a. Assets first, followed by stockholders' equity, liabilities, revenues, and expenses b. Revenues first, followed by expenses, stockholders' equity, assets, and liabilities c. Revenues first, followed by expenses, assets, liabilities, and stockholders' equity O d. Assets first, followed by liabilities, stockholders' equity, revenues, and expenses #13 The Financial Accounting Standards Board (FASB) has developed four enhancing characteristics that support the fundamental characteristics of accounting information. Which of the following is NOT one of the enhancing characteristics? a. Timeliness b. Conservatism c. Comparability d. Verifiability O #14 R & Equipment Manufacturers began negotiations to build specialized equipment for Clermont Excavating on October 31, 2019. A contract was signed on November 15, 2019, and work began the next day. The equipment was completed and delivered on December 29, 2019 Clermont Excavating paid for the equipment on January 15, 2020. In which period should R & J record the revenue for the equipment? a. November 2019 b. January 2020 c. December 2019 d. October 2019 #15 A general ledger can be described as a a group of accounts in no particular order. O b. group of accounts that are balanced at the end of the fiscal year. c. collection of all the individual financial statement accounts that a company uses. Od group of accounts in chronological order. #16 Economic events are both internal and external. Which of the following events is an external event? a. The marketing department considers placing an ad for a fire sale on its damaged inventory. b. The company estimates the loss of sales due to the fire. c. The company purchases inventory to replace that damaged in the fire. d. The company recognizes inventory loss due to a fire. #17 The normal balance of an account a. is a credit. b. will vary, depending on the account balance. c. determines which side of the account increases that account. d. is a debit. #18 Issuing stock in exchange for cash has which of the following effects on the accounting equation? a. Increase liabilities and increase contributed capital b. Decrease assets and increase contributed capital c. Increase contributed capital and decrease retained earnings d. Increase assets and increase contributed capital #19 A company's chart of accounts is determined by O a. the government. b. the activities of the business. c. the FASB. d. GAAP. #20 A trial balance is prepared from a. financial statements. b. the source documents. c. the journal. Od the account balances in the ledger