Which of the following statements is true?

Question 12 options:

1)

Journalizing consists of analyzing and recording transactions in T-accounts.

2)

Preparing a post-closing trial balance helps to prove the accuracy of the adjusting and closing procedures.

3)

The information on the work sheet can be used in place of preparing financial statements.

4)

By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.

5)

All of these statements are true.

Question 13 (1 point)

The normal order for the asset section of a classified balance sheet is

Question 13 options:

1)

Current assets, prepaid expenses, long-term investments, intangible assets

2)

Long-term investments, current assets, property, plant and equipment, intangible assets

3)

Current assets, long-term investments, property, plant and equipment, intangible assets

4)

Intangible assets, current assets, long-term investments, property, plant and equipment

5)

Property, plant and equipment, intangible assets, long-term investments, current assets

Question 14 (1 point)

The Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the year?

Question 14 options:

1)

$2,700

2)

$2,900

3)

$3,300

4)

$3,500

5)

$3,700

Question 15 (1 point)

A classified balance sheet

Question 15 options:

1)

Measures a company's ability to pay its bills on time

2)

Organizes assets and liabilities into important subgroups

3)

Presents revenues, expenses and profit

4)

Shows operating, investing, and financing activities

5)

Shows the effect of profit and withdrawals on owner's capital

Question 16 (1 point)

If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with an entry to

Question 16 options:

1)

debit Salary Expense and credit cash.

2)

debit Girard Don, Salary and credit cash.

3)

debit cash and credit Girard Don, withdrawals

4)

debit Girard Don, capital and credit cash

5)

debit Girard Don, withdrawals and credit cash

Question 17 (1 point)

Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?

Question 17 options:

1)

Assets, $5,000 increase, equity, $5,000 increase.

2)

Assets, $5,000 increase, equity, $5,000 decrease.

3)

Liabilities, $5,000 increase, equity, $5,000 decrease.

4)

Assets, $5,000 decrease, equity, $5,000 decrease.

5)

Assets, no effect; liabilities, no effect

Question 18 (1 point)

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Services Revenue, the end-of-period adjusting entry to record the portion of these fees that has been earned is

Question 18 options:

1)

Debit Cash and credit Legal Service Revenue

2)

Debit Cash and credit Unearned Legal Service Revenue

3)

Debit Unearned Legal Service Revenue and credit Legal Service Revenue

4)

Debit Legal Service Revenue and credit Unearned Legal Service Revenue

5)

Some other entry

Question 19 (1 point)

Of the following errors, which one by itself will cause the trial balance to be out of balance?

Question 19 options:

1)

A $200 salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense

2)

A $100 receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable

3)

A $75 receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash

4)

A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash

5)

All of these errors will cause the trial balance to be out of balance.

Question 20 (1 point)

Accounts that are used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period, are

Question 20 options:

1)

Financial accounts

2)

Temporary accounts

3)

Closing accounts

4)

Permanent accounts

5)

Summary accounts

Question 21 (1 point)

On May 31, Charlotte Company had an Accounts Payable balance of $57,000. During the month of June, total credits to Accounts Payable were $34,000, which resulted from purchases on credit. The June 30 Accounts Payable balance was $7,000. What was the amount of payments made during June?

Question 21 options:

1)

$32,000

2)

$34,000

3)

$57,000

4)

$59,000

5)

$84,000

Question 22 (1 point)

Under which one of the following situations can a company recognize revenue under Generally Accepted Accounting Principles?

Question 22 options:

1)

A customer signs a contract to purchase goods to be delivered in two weeks.

2)

A company completes production of a customer order to be delivered in two weeks.

3)

A company ships the goods for which it received a deposit two weeks ago.

4)

A company receives a cash deposit from a customer to deliver goods in two weeks.

5)

A company purchased raw materials to complete production of a customer order.

Question 23 (1 point)

The accrual basis of accounting

Question 23 options:

1)

Is generally accepted for external reporting because it gives more useful information

2)

Is not acceptable because it gives incomplete information about cash flows

3)

Recognizes revenues when received

4)

Recognizes expenses when paid

5)

Eliminates the need for adjusting entries

Question 24 (1 point)

Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance?

Question 24 options:

1)

Entering an asset amount in the Income Statement Debit column.

2)

Entering a liability amount in the Income Statement Credit column.

3)

Entering an expense amount in the Balance Sheet Debit column.

4)

Entering a revenue amount in the Balance Sheet Debit column.

5)

Entering a liability amount in the Balance Sheet Credit column.

Question 25 (1 point)

When closing the Withdrawals account

Question 25 options:

1)

The income summary account should be debited

2)

The income summary account should be credited

3)

The owners' capital account should be credited

4)

The owners' capital account should be debited

5)

Liability account should be credited