Question 1

2.5pts

The process of transferring the data from the journal into the ledgers is called:

Group of answer choices

footing

transponding

posting

journalizing

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Question 2

2.5pts

How many steps are in the accounting cycle?

Group of answer choices

6

7

8

9

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Question 3

2.5pts

In order to analyze the effect of a business transaction one must does all of the following except

Group of answer choices

identify the property.

identify who owns the property.

determine which asset, liability, or equity accounts will change.

determine the amount of increase or decrease.

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Question 4

2pts

_________ accounting firms provide three major types of services: auditing, tax accounting, and management advisory services.

Group of answer choices

Public

Governmental

Private

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Question 5

2pts

Tax accounting involves tax compliance and

Group of answer choices

tax evaluation

tax planning

tax configuration

tax obfuscation

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Question 6

2pts

Which of the following is NOT a service of public accounting firms?

Group of answer choices

auditing

tax accounting

management advisory services

investment services

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Question 7

2.5pts

Owners and managers need financial information in order to

Group of answer choices

grant loans.

issue credit.

collect taxes.

make decisions.

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Question 8

2.5pts

Net income

Group of answer choices

decreases owners' equity

increases owners' equity

does not affect owners' equity

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Question 9

2.5pts

The fundamental accounting equation can be rewritten as:

Group of answer choices

Assets + Liabilities = Owner's Equity

Liabilities - Owner's Equity = Assets

Assets + Owner's Equity = Liabilities

Assets - Liabilities = Owner's Equity

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Question 10

2.5pts

Total liabilities is $10,000, total owner's equity is $4,000. What are total assets?

Group of answer choices

$6,000

$14,000

$4,000

$10,000

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Question 11

2.5pts

Our company purchases equipment on account due in 30 days. When the payment is finally made,

Group of answer choices

assets increase

equity increases

equity decreases

liabilities decrease

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Question 12

2.5pts

When equipment is purchased with cash

Group of answer choices

Equipment is increased and cash is increased

Equipment is increased and cash is decreased

Equipment is increased, cash is unaffected

Equipment is decreased, cash is decreased

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Question 13

2.5pts

When a sale occurs, an increase to assets and increase to _____________ is recorded.

Group of answer choices

expenses

drawing

liabilities

revenue

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Question 14

2.5pts

The Sales Returns & Allowances account is a

Group of answer choices

contra-revenue account

asset account

liability account

equity account

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Question 15

2.5pts

A sales return or a sales allowance is usually recorded in the _______ journal.

Group of answer choices

sales

purchases

general

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Question 16

2.5pts

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

Group of answer choices

a debit to Sales and a credit to Accounts Receivable.

a debit to Sales Returns and Allowances and a credit to Accounts Receivable.

a debit to Accounts Receivable and a credit to Sales Returns and Allowances.

a debit to Sales and a credit to Sales Returns and Allowances.

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Question 17

2.5pts

In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the

Group of answer choices

cash payments journal.

cash receipts journal.

general journal.

purchases journal.

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Question 18

2.5pts

Amounts that a business must pay in the future are known as

Group of answer choices

Accounts Receivable.

Accounts Payable.

Capital.

Expenses.

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Question 19

2.5pts

A firm paid cash to apply against a debt. To record this transaction, the accountant would

Group of answer choices

debit Accounts Receivable and credit Cash.

debit Accounts Payable and credit Cash.

debit Cash and credit Accounts Payable.

credit Cash and credit Accounts Payable.

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Question 20

2.5pts

To record equipment purchased for cash involves

Group of answer choices

a debit to Cash

a credit to Cash

Cash is not affected

a credit to Equipment

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Question 21

2.5pts

A business purchases supplies on account. The journal entry to record this transaction is:

Group of answer choices

Debit to Cash; Credit Supplies

Debit to Supplies; Credit Accounts Receivable

Debit Supplies; Credit Accounts Payable

Debit Supplies; Credit to Cash

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Question 22

2.5pts

When there are several entries to one or both sides of a t-account, the total of those entries is entered in pencil. This is called

Group of answer choices

balancing.

verifying.

totaling.

footing.

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Question 23

2.5pts

The Service Fees account has 2 credit entries of $1,000 and $1,500. What is the balance of this account?

Group of answer choices

debit balance of $2,500

debit balance of $500

credit balance of $2,500

credit balance of $500

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Question 24

2.5pts

Service Fees as credit entriesof $12,000 and $4,000. The balance of the service fees account is a

Group of answer choices

credit of $16,000

credit of $8,000

debit of $16,000

credit of $4,000

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Question 25

2.5pts

The balance of a t-account

Group of answer choices

is always recorded on the normal balance side

on the side with the greater total

on the credit side

on the debit side

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Question 26

2.5pts

Debits are used to record

Group of answer choices

increases in assets.

increases in revenue.

increases in owner's equity.

increases in liabilities.

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Question 27

2.5pts

Accounts with normal credit balances are (select all that apply):

Group of answer choices

Cash

Supplies

Service Fees

Utilities Expense

Capital

Accounts Payable

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Question 28

2.5pts

The normal balance of an account is the

Group of answer choices

decrease side

increase side

debit

credit

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Question 29

2.5pts

Credits are recorded on the _______ side of the t-account:

Group of answer choices

left

right

left or the right

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Question 30

2.5pts

Which of the following is correct?

Group of answer choices

A

B

Credit 4,500

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Question 31

2.5pts

What must total assets be to ensure the fundamental accounting equation is balanced?

Group of answer choices

credit of 27,000

debit of 17,000

credit of 17,000

debit of 27,000

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Question 32

2.5pts

The T-accounts have the following balances:

What must the balance of the Drawing account be for the fundamental accounting equation to balance?

Group of answer choices

credit balance of $2,500

credit balance of $7,000

debit balance of $2,500

debit balance of $500

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Question 33

2.5pts

The T-accounts have the following balances:

What must the balance of the Accounts Payable account be for the fundamental accounting equation to balance?

Group of answer choices

debit balance of $9,000

credit balance of $9,000

credit balance of $3,000

credit balance of $8,000

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Question 34

2.5pts

The journal entry to record a payment made in January for rent for the months of February and March would include

Group of answer choices

a debit to Sue Snow, Capital, and a credit to Cash.

a debit to Rent Expense and a credit to Cash.

a debit to Prepaid Rent and a credit to Cash.

a debit to Sue Snow, Drawing and a credit to Rent Expense.

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Question 35

2.5pts

The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include

Group of answer choices

a debit to Sue Snow, Capital, and a credit to Cash.

a debit to Utilities Expense and a credit to Cash.

a debit to Sue Snow, Drawing and a credit to Utilities Expense.

a debit to Sue Snow, Drawing and a credit to Cash.

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Question 36

2.5pts

A purchase of office equipment for $380 cash is journalized as:

Group of answer choices

Debit Office Equipment; Credit Accounts Payable

Debit Office Equipment; Credit Cash

Debit Equipment Expense; Credit Accounts Receivable

Debit Cash; Credit Office Equipment

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Question 37

2.5pts

The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include

Group of answer choices

a debit to Equipment for $100 and a credit to Cash for $100.

a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.

a debit to Equipment for $100 and a credit to Accounts Payable for $400.

debit to Equipment for $500 and a credit to Cash for $500.

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Question 38

2.5pts

When a customer purchases services with cash down and the rest on account due later, the journal entry would be:

Group of answer choices

debit to Cash and Accounts Receivable; credit to Service Fees

debit to Service Fees; credit to Cash and Accounts Receivable

debit to Service Fees and Accounts Receivable; credit to Cash

debit to Cash; credit to Service Fees

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Question 39

2.5pts

The journal entry to record the sale of services to clients for $4,000 with $500 from cash clients and the remainder on account would include:

Group of answer choices

debit to Cash for $4,000

a debit to Accounts Receivable for $4,000

a debit to Accounts Receivable for $3,500

a credit to Accounts Receivable for $3,500

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Question 40

2.5pts

The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due in 30 days would include

Group of answer choices

a debit to Equipment for $100 and a credit to Cash for $100.

a debit to Equipment for $500, a credit to Cash for $100, and a credit to Accounts Payable for $400.

a debit to Equipment for $100 and a credit to Accounts Payable for $400.

debit to Equipment for $500 and a credit to Cash for $500.

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Question 41

2.5pts

In a compound journal entry

Group of answer choices

debits must equal credits

debits and credits do not need to balance

only debits must equal

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Question 42

2.5pts

The Accounts Receivable account in the general ledger has a debit balance of $10,000. The following transactions are posted to the ledger:

Debit of $6,000

Credit of $4,000

What is the balance of the account?

Group of answer choices

credit balance of $4,000

debit balance of $12,000

debit balance of $4,000

This account has a zero balance

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Question 43

2.5pts

The posting reference column in the ledger relates to:

Group of answer choices

the account number

the amount of the debit

the journal page number

is not used

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Question 44

2.5pts

Which of the following statements is correct?

Group of answer choices

The general ledger contains the accounts that are used to prepare the financial statements.

Some companies use the general ledger instead of a general journal.

When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger.

When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal.

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Question 45

2.5pts

The general ledger accounts are usually arranged in the following order:

Group of answer choices

first the temporary accounts, then the permanent accounts.

first the accounts with debit balances, then the accounts with credit balances.

first the balance sheet accounts, then the income statement accounts.

first the accounts used most often, then those used less frequently.

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Question 46

2.5pts

The payment of a utility bill is recorded as follows:

Debit to Rent Expense

Credit to Cash

The correcting entry

Group of answer choices

is not required

is a debit to Cash and a credit to Utilities Expense

is a debit to Utilities Expense and a credit to Rent Expense

is a debit to Rent Expense and a credit to Utilities Expense

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Question 47

2.5pts

A firm purchased telephone equipment for cash. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. The error was discovered after the data was posted. The correcting entry should contain

Group of answer choices

a debit to Office Equipment and a credit to Cash.

a debit to Office Equipment and a credit to Utilities Expense.

a debit to Cash and a credit to Office Equipment.

a debit to Utilities Expense and a credit to Cash.

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Question 48

2.5pts

If a journal entry that contains an error has already been posted,

Group of answer choices

the incorrect items should be erased and replaced with the correct data.

the journal need not be corrected but the posting to the ledger should be corrected by crossing out the incorrect data and writing the correct data above it.

a correcting entry should be journalized and posted.

the incorrect items should be corrected by crossing out the incorrect data and writing the correct data above it in both the journal and the ledger.

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Question 49

2.5pts

Correcting entries are required

Group of answer choices

only when the wrong accounts are recorded

only when the wrong amounts are recorded

only for expenses

when any error is made in recording a transaction

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Question 50

3pts

Adjusting Entries are

Group of answer choices

corrections of errors.

not required.

needed for expenses that were paid for before or after they were used.

will always affect cash.

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Question 51

3pts

MacGyver Company bought equipment on January 3, 2013, for $34,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Using the straight-line method, the amount ofone year'sdepreciation is

Group of answer choices

$880

$5,520

$460

$5,667

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Question 52

3pts

Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2013. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2013?

Group of answer choices

$260

$520

$3,120

$1,020

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Question 53

3pts

Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?

Group of answer choices

Debit Accumulated Depreciation; credit Depreciation Expense

Debit Depreciation Expense; credit Equipment

Debit Depreciation; credit Depreciation Expense

Debit Depreciation Expense; credit Accumulated Depreciation

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Question 54

3pts

What is the adjusted trial balance for Accumulated Depreciation - Equipment?

Group of answer choices

debit 1,000

credit 1,000

credit 3,000

credit 2,000

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Question 55

3pts

On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

Group of answer choices

the Income Statement Debit column.

the Income Statement Credit column.

the Balance Sheet Debit column.

the Balance Sheet Credit column.

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Question 56

3pts

Using the worksheet below, what are the total assets that would be reported on the balance sheet?

Group of answer choices

31,000

23,000

26,000

29,000

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Question 57

3pts

What is the net income or net loss?

Group of answer choices

net loss of 7,400

net income of 15,400

net loss of 8,000

net income of 8,000