Question 1

2.5pts

Journalizing is the _______ step in the accounting cycle

Group of answer choices

1st

2nd

3rd

4th

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Question 2

2.5pts

The third step of the accounting cycle

Group of answer choices

journalizes transactions

posts to the general ledger

creates a trial balance

generates financial statements

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Question 3

2.5pts

The first step in the accounting cycle is to

Group of answer choices

journalize

post

analyze transactions

creates a trial balance

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Question 4

2pts

Which of the following is NOT an area in which accountants usually practice?

Group of answer choices

Public Accounting

Industrial Accounting

Governmental Accounting

Managerial (Private) Accounting

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Question 5

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 6

2pts

After the transactions have been posted, the next step in the accounting cycle is to

Group of answer choices

prepare the financial statements.

prepare the postclosing trial balance.

prepare the worksheet.

journalize and post the adjusting entries.

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Question 7

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 8

2.5pts

When the owner takes a draw for personal use, this will

Group of answer choices

increase owners' equity

decrease owners' equity

do not affect owners' equity

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Question 9

2.5pts

Which of the following is NOT a type of information communicated by the financial statements?

Group of answer choices

Whether or not the business is profitable

What types of assets business owns

How long the business has been in operation

How much the business owes others

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Question 10

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 11

2.5pts

When the owner invests cash in a business,

Group of answer choices

assets and revenue increase.

assets increase and owner's equity decreases.

liabilities decrease and owner's equity increases.

assets and owner's equity increase.

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Question 12

2.5pts

Increases in revenue are recorded when

Group of answer choices

services are performed for cash clients

services are performed for credit clients

services are performed for cash or credit clients

credit clients pay for services previously rendered

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Question 13

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 14

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 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

If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were

Group of answer choices

$54,000.

$50,000.

$46,000.

$4,000.

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Question 17

2.5pts

If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in

Group of answer choices

the general journal.

the sales journal.

the cash receipts journal.

the cash payments journal.

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Question 18

2.5pts

When revenue is earned from charge-account sales, the accountant

Group of answer choices

debits a revenue account and credits the capital account.

debits Accounts Receivable and credits a revenue account.

debits a revenue account and credits Accounts Receivable.

debits Cash and credits a revenue account.

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Question 19

2.5pts

To record payment of an expense, we would _________ an expense account.

Group of answer choices

debit

credit

either debit or credit

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Question 20

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 21

2.5pts

To record the payment on account we would _______ Accounts Payable

Group of answer choices

debit

credit

either debit or credit

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Question 22

2.5pts

Accounts Receivable has a debit balance of $8,500. Payments of $2,500 are received from credit clients. The new balance in Accounts Receivable is: (no dollar signs)

Group of answer choices

$11,000

$2,500

$6,000

$8,500

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Question 23

2.5pts

Services are performed for cash. To record this in the t-accounts involves:

Group of answer choices

an entry to the right side of cash and the left side of service fees

an entry to the left side of accounts receivable and the right side of service fees

an entry to the left side of cash and the right side of service fees

an entry to the right side of accounts receivable and the left side of service fees

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Question 24

2.5pts

The Accounts Receivable account has the following entries:

A debit of $4,000

A credit of $1,000

A debit of $5,000

What is the balance of this account?

Group of answer choices

credit of $8,000

debit of $8,000

credit of $10,000

debit of $10,000

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Question 25

2.5pts

Prepaid Rent has a debit entry of $5,000 and a credit entry of $2,000. What is the balance of this account?

Group of answer choices

credit balance of $3,000

debit balance of $3,000

debit balance of $5,000

credit balance of $5,000

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Question 26

2.5pts

Credits record

Group of answer choices

decreases in assets and owners' equity and increases in liabilities

decreases in assets, liabilities and owners' equity

decreases in liabilities and increases in assets and owners' equity

increases in liabilities and owners' equity

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Question 27

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 28

2.5pts

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

Group of answer choices

Cash

Supplies

Prepaid Insurance

Accounts Payable

Capital

Drawing

Utilities Expense

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Question 29

2.5pts

Debits are used to record

Group of answer choices

increases in assets

increases in revenues

increases in owners' equity

increases in liabilities

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Question 30

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 31

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 32

2.5pts

Which of the following is correct?

Group of answer choices

A

B

Credit 4,500

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Question 33

2.5pts

The T-accounts have the following balances:

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

Group of answer choices

debit balance of $2,000

credit balance of $2,000

credit balance of $6,000

debit balance of $4,000

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Question 34

2.5pts

When revenue is earned from charge-account sales, the accountant

Group of answer choices

debits a revenue account and credits the capital account.

debits a revenue account and credits Accounts Receivable.

debits Accounts Receivable and credits a revenue account.

debits Cash and credits a revenue account.

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Question 35

2.5pts

The journal entry to record $2,450 of revenue earned and received in cash by Agatha Panthis Landscape Architect Company is:

Group of answer choices

Debit Fees Income; Credit Accounts Receivable

Debit Cash; Credit Fees Income

Debit Fees Income; Credit Cash

Debit Accounts Receivable; Credit Fees Income

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Question 36

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 37

2.5pts

The journal entry to record the receipt of cash from credit clients on account would include

Group of answer choices

a debit to Cash and a credit to Fees Income.

a debit to Fees Income and a credit to Cash.

a debit to Cash and a credit to Accounts Receivable.

a debit to Accounts Receivable and a credit to Cash.

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Question 38

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 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

A compound journal entry is

Group of answer choices

a journal entry with 2 accounts debited

a journal entry with 2 accounts credited

a journal entry with 2 or more accounts debited or credited

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Question 42

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 43

2.5pts

The Posting Reference column of a journal is used to

Group of answer choices

record the date on which an amount is posted to a ledger account.

record the number of the ledger account to which the information is posted.

record the number of amounts posted to that ledger account since the beginning of the current accounting period.

record the page number of the ledger account.

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Question 44

2.5pts

The account numbers are recorded in the Posting Reference column of the general journal

Group of answer choices

as the transaction is journalized.

after all entries on the journal page have been posted.

after each amount is posted.

as the first amount written in the journal.

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Question 45

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 46

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 47

2.5pts

The purchase of supplies for $500 was recorded as a creditto Cash and a debitto Equipment. To correct this entry we would:

Group of answer choices

no correction required

debit Supplies $500 and credit Cash $500

debit Supplies $500 and credit Equipment for $500

credit Cash for $500 and debit Supplies for $500

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Question 48

2.5pts

Which of the following statements is correct?

Group of answer choices

All errors made in journal entries should be corrected by the preparation of a correcting journal entry.

If an error in a journal entry is discovered before the entry is posted to the general ledger, the entry can simply be erased and replaced with the correct journal entry.

If an error in a journal entry is discovered before the entry is posted to the general ledger, the error in the entry should be crossed out and the correct data written above it.

If an error in a journal entry is discovered before the entry is posted to the general ledger, a journal entry should be made to correct the erroneous entry.

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Question 49

2.5pts

Bertrand Inc. purchased some shop equipment for $4,500 in cash. By mistake, the journal entry debited the Office Equipment account rather than the Shop Equipment account. What correcting entry would be necessary?

Group of answer choices

Debit Office Equipment $4,500; credit Shop Equipment $4,500

Debit Office Equipment $4,500; credit Cash $4,500

Debit Cash $4,500; credit Shop Equipment $4,500

Debit Shop Equipment, $4,500; Credit Office Equipment $4,500

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Question 50

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 51

3pts

If a worksheet is prepared at the end of the accounting year,

Group of answer choices

the financial statements are prepared using the worksheet data.

the financial statements are prepared using the general journal

only a balance sheet is required.

preparation of the financial statements is not required.

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Question 52

3pts

On October 1, 2013, Jay Walker Company purchased a one-year insurance policy for $660. The correct adjusting entry on December 31, 2013, is

Group of answer choices

debit Insurance Expense $660; credit Prepaid Insurance $660

debit Insurance Expense $495; credit Prepaid Insurance $495

debit Prepaid Insurance $55; credit Insurance Expense $55

debit Insurance Expense $165; credit Prepaid Insurance $165

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Question 53

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 54

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 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

On the worksheet, the Balance Sheet columns should balance

Group of answer choices

before the net income amount is added to the Balance Sheet Debit column.

after the net income amount is added to the Balance Sheet Debit column.

after the net income amount is added to the Balance Sheet Credit column.

before the net income amount is added to the Balance Sheet Credit column.

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Question 57

3pts

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

Group of answer choices

the Income Statement Debit column.

the Income Statement Credit column.

the Balance Sheet Debit column.