Question 1

A company collects $4,000 cash from customers for services previously provided on account.Record the transaction.

Accepted Answer

The answer of A company collects $4,000 cash from customers...

Question 2

Assume that Sallisaw Sideboards,Inc.had a retained earnings balance of $10,000 on April 1,and that the company had the following transactions during April.
 Issued common stock for cash,$5,000.
Provided services to customers on account,$2,000.
Provided services to customers in exchange for cash,$900.
Purchased equipment and paid cash,$4,300.
Paid April rent,$800.
Paid workers salaries for April,$700.
What was Sallisaw's retained earnings balance at the end of April?

Accepted Answer

A)  $11,400.
B)  $12,100.
C)  $16,400.
D)  Some other amount.E) A) and B)
F) B) and C)

Question 3

Providing services to customers on account would affect the balances reported in which financial statement(s) ?

Accepted Answer

A)  Income statement
B)  Statement of stockholders' equity
C)  Balance sheet
D)  All of the financial statements would be affectedE) None of the above
F) All of the above

Question 4

A company sells common stock for $20,000 cash.Record the transaction.

Accepted Answer

The answer of A company sells common stock for $20,000...

Question 5

Which of the accounts are increased with a debit and decreased with a credit?

Accepted Answer

A)  Liabilities,stockholders' equity,and revenues.
B)  Dividends,liabilities,and assets.
C)  Expenses,dividends,and stockholders' equity.
D)  Assets,dividends,and expenses.E) A) and C)
F) None of the above

Question 6

Consider the following transactions:
 Issued common stock for cash.
Purchased equipment by signing a note payable.
Paid rent for the current month.
Collected cash from customers on account.
How many of these four transactions increased the given company's total assets?

Accepted Answer

A)  One.
B)  Two.
C)  Three.
D)  Four.E) A) and B)
F) A) and C)

Question 7

A company provides services to customers for $2,400 cash.Record the transaction.

Accepted Answer

The answer of A company provides services to customers for...

Question 8

If a transaction causes total assets of the company to increase by $2,000,then liabilities plus stockholders' equity also increases by $2,000.

Accepted Answer

A) True 
 B)False

Question 9

Purchasing supplies for cash has what effect on the accounting equation?

Accepted Answer

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

Question 10

Borrowing cash from the bank causes assets to increase and liabilities to increase.

Accepted Answer

A) True 
 B)False

Question 11

Incurring employees' salaries but not paying them causes no change to stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 12

The two components of stockholders' equity are Debits and Credits.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a possible journal entry?

Accepted Answer

A)  Credit assets; Debit expenses.
B)  Debit assets; Debit stockholders' equity.
C)  Credit revenues; Debit assets.
D)  Debit expenses; Credit liabilities.E) B) and C)
F) A) and D)

Question 14

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 15

On July 31,ALOE Inc.received $5,000 cash from a customer who previously purchased ALOE's products on account.What should ALOE Inc.record at the time it receives cash?

Accepted Answer

A)  Debit Accounts Receivable,$5,000; credit Cash,$5,000.
B)  Debit Cash,$5,000; credit Accounts Receivable,$5,000.
C)  Debit Cash,$5,000; credit Accounts Payable,$5,000.
D)  Debit Cash,$5,000; credit Service Revenue,$5,000.E) B) and D)
F) B) and C)

Question 16

Which of the following would increase assets and increase liabilities?

Accepted Answer

A)  Provide services to customers on account.
B)  Purchase office supplies on account.
C)  Pay dividends to stockholders.
D)  Received a utility bill but do not pay for it.E) A) and B)
F) A) and C)

Question 17

For each transaction recorded in an accounting system,the basic equation that must be maintained at all times is:

Accepted Answer

A)  Assets = Liabilities + Stockholders' Equity.
B)  Cash Increases = Cash Decreases.
C)  Revenues = Expenses + Dividends.
D)  Assets = Liabilities.E) All of the above
F) C) and D)

Question 18

Dividends normally carry a _______ balance and are shown in the _________.

Accepted Answer

A)  Debit; Statement of stockholders' equity
B)  Debit; Income statement
C)  Credit; Balance sheet
D)  Debit; Balance SheetE) None of the above
F) B) and C)

Question 19

Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?

Accepted Answer

A)  Use source documents to determine accounts affected by the transaction.
B)  Prepare a trial balance.
C)  Analyze the impact of the transaction on the accounting equation.
D)  Post the transaction to the T-account in the general ledger.E) A) and C)
F) A) and D)

Question 20

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 D)
F) All of the above

Exam 2: The Accounting Information System

Consider the following transactions: Issued common stock for cash. Purchased equipment by signing a note payable. Paid rent for the current month. Collected cash from customers on account. How many of these four transactions increased the given company's total assets?

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

Providing services to customers on account would affect the balances reported in which financial statement(s) ?

Correct Answer
verified

Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?

Correct Answer
verified

Incurring employees' salaries but not paying them causes no change to stockholders' equity.

Correct Answer
verified

For each transaction recorded in an accounting system,the basic equation that must be maintained at all times is:

Correct Answer
verified

Borrowing cash from the bank causes assets to increase and liabilities to increase.

Correct Answer
verified

On July 31,ALOE Inc.received $5,000 cash from a customer who previously purchased ALOE's products on account.What should ALOE Inc.record at the time it receives cash?

Correct Answer
verified

Correct Answer
verified

Purchasing supplies for cash has what effect on the accounting equation?

Correct Answer
verified

If a transaction causes total assets of the company to increase by $2,000,then liabilities plus stockholders' equity also increases by $2,000.

Correct Answer
verified

Which of the accounts are increased with a debit and decreased with a credit?

Correct Answer
verified

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

Correct Answer
verified

Which of the following would increase assets and increase liabilities?

Correct Answer
verified

A company collects $4,000 cash from customers for services previously provided on account.Record the transaction.

Correct Answer
verified

Which of the following is not a possible journal entry?

Correct Answer
verified

A company sells common stock for $20,000 cash.Record the transaction.

Correct Answer
verified

Dividends normally carry a _ balance and are shown in the ___.

Correct Answer
verified

A company provides services to customers for $2,400 cash.Record the transaction.

Correct Answer
verified

The two components of stockholders' equity are Debits and Credits.

Correct Answer
verified

Exam 2: The Accounting Information System

Consider the following transactions: Issued common stock for cash. Purchased equipment by signing a note payable. Paid rent for the current month. Collected cash from customers on account. How many of these four transactions increased the given company's total assets?

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

Providing services to customers on account would affect the balances reported in which financial statement(s) ?

Correct AnswerverifiedShow Answer

Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?

Correct AnswerverifiedShow Answer

Incurring employees' salaries but not paying them causes no change to stockholders' equity.

Correct AnswerverifiedShow Answer

For each transaction recorded in an accounting system,the basic equation that must be maintained at all times is:

Correct AnswerverifiedShow Answer

Borrowing cash from the bank causes assets to increase and liabilities to increase.

Correct AnswerverifiedShow Answer

On July 31,ALOE Inc.received $5,000 cash from a customer who previously purchased ALOE's products on account.What should ALOE Inc.record at the time it receives cash?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Purchasing supplies for cash has what effect on the accounting equation?

Correct AnswerverifiedShow Answer

If a transaction causes total assets of the company to increase by $2,000,then liabilities plus stockholders' equity also increases by $2,000.

Correct AnswerverifiedShow Answer

Which of the accounts are increased with a debit and decreased with a credit?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following would increase assets and increase liabilities?

Correct AnswerverifiedShow Answer

A company collects $4,000 cash from customers for services previously provided on account.Record the transaction.

Correct AnswerverifiedShow Answer

Which of the following is not a possible journal entry?

Correct AnswerverifiedShow Answer

A company sells common stock for $20,000 cash.Record the transaction.

Correct AnswerverifiedShow Answer

Dividends normally carry a _______ balance and are shown in the _________.

Correct AnswerverifiedShow Answer

A company provides services to customers for $2,400 cash.Record the transaction.

Correct AnswerverifiedShow Answer

The two components of stockholders' equity are Debits and Credits.

Correct AnswerverifiedShow Answer

Correct Answer
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Dividends normally carry a _ balance and are shown in the ___.

Correct Answer
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Correct Answer
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Correct Answer
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