Applied Accounting

A compound entry is a. an entry involving more than one debit or credit b. an entry involving multiple transactions c. an entry involving more than one date d. an entry increasing and decreasing the same account

A

In a worksheet, the debit and credit columns listed in the Balance Sheet and Income Statement area: a. do not have debits equal credits, and the difference is the net income or net loss b. prove that debits equal credits c. prove the balance in owner's equity d. are formal financial statements

A

The proper journal entry to record the $170 receipt of a bill sent to a customer last month would be: a. Cash 170 Accounts Receivable 170 b. Fees Earned 170 Accounts Receivable 170 c.Fees Earned 170 Cash 170 d. Accounts Receivable 170 Cash 170

A

Adjustments for prepaid expenses: a. decrease revenues and increase assets b. decrease assets and increase expenses c. decrease assets and increase revenues d. decrease expenses and increase assets

B

Although debits increase assets, they also a. increase revenues b. increase expenses c. increase owner's equity d. increase liabilities

B

Annual equipment depreciation is calculated as $5,000. What is the adjusting journal entry? a. debit equipment and credit depreciation expense for $5,000 b. debit depreciation expense and credit accumulated depreciation for $5,000 c. debit accumulated depreciation and credit equipment for $5,000 d. debit accumulated depreciation and credit depreciation expense for $5,000

B

Which is not a General Journal? a. Book of original entry b. Book of final entry c. Journal d. Simplest form of journal

B

On March 1, Babko Company paid $1,500 for 6 months rent. What is the adjusting entry for the fiscal year ending June 30? a. debit rent expense and credit prepaid rent for $750 b. debit prepaid rent and credit rent expense for $750 c. debit rent expense and credit prepaid rent for $1,000 d. debit prepaid rent and credit rent expense for $1,000

C

Select the transaction that increases liabilities. a. Paid insurance for the next 3 months b. Purchase inventory for cash c. Received utility bill d. Received cash from a bill sent to customers last month

C

Which of the following illustrates the accounting cycle? 1-The Trial Balance is prepared. 2-Postings are made into the General Ledger 3-Journal entries are recorded 4-Transactions occur a. 1, 2, 3, 4 b. 1, 3, 2, 4 c. 4, 3, 2, 1 d. 4, 2, 3, 1

C

Which of the following is not an asset? a. Cash b. Land c. Mortgage Payable d. Patents

C

Which account is shown on the income statement? a. Equipment b. Owner, Capital Account c. Accounts Payable d. Rent Expense

D

Select the accounts affected by the following transaction: TJ Rex invests $50,000 to open a music store. a. Assets and Owner's Equity b. Assets and Liabilities c. Liabilities and Owner's Equity d. Capital and Owner's Equity

A

Select the accounts affected by the following transaction: TJ Rex receives $100 for previous lessons provided on account. a. Cash and Accounts Receivable b. Cash and Revenue c. Accounts Receivable and Revenue d. Cash and Expenses

A

The proper journal entry to record the $100 purchase of supplies on account would be: a. Office Supplies 100 Accounts payable 100 b. Cash 100 Office Supplies 100 c. Office Supplies 100 Cash 100 d. Accounts payable 100 Office Supplies 100

A

Which account is shown on the balance sheet? a. Cash b. Utilities Expense c. Withdrawals by owner d. Revenue

A

Which of the following accounts is not commonly adjusted in an adjusting entry? a. cash - adjusted to match the bank statement b. office supplies - adjusted to record supplies used during the period c. prepaid rent - adjusted to record rent expense d. equipment - adjusted to record depreciation

A

Which of the following is reported on the balance sheet? a. Accounts Payable b. Fees Earned c. Depreciation Expense d. Withdrawals

A

Select the accounts affected by the following transaction: TJ Rex provides guitar lessons for $25 cash. a. Cash and Accounts Payable b. Cash and Revenue c. Accounts Receivable and Revenue d. Cash and Expenses

B

Select the accounts affected by the following transaction: TJ Rex uses credit to buy musical instruments to sell in the store. a. Assets and Owner's Equity b. Assets and Liabilities c. Liabilities and Owner's Equity d. Capital and Owner's Equity

B

Select the transaction that would increase assets. a. Purchase inventory for cash b. Provided consulting services for cash c. Received cash from a bill sent to customers last month d. Paid insurance for the next 3 months

B

The proper journal entry to record receiving the $150 advertising bill would be: a. Cash 150 Advertising Expense 150 b. Advertising Expense 150 Accounts payable 150 c. Advertising Expense 150 Cash 150 d. Accounts payable 150 Advertising Expense 150

B

Which of the following accounts has a normal debit balance? a. Mia Wong, Capital b. Cash c. Accounts Payable d. Fees Earned

B

The proper journal entry to record the $200 rent paid in advance would be: a. Prepaid Rent 200 Accounts payable 200 b. Cash 200 Prepaid Rent 200 c. Prepaid Rent 200 Cash 200 d. Accounts payable 200 Prepaid Rent 200

C

The right side of a T account is the a. increase side b. decrease side c. credit side d. debit side

C

The trial balance a. shows the income earned during the year b. shows the total amount of assets c. shows the accuracy of the general ledger d. is the first financial statement prepared

C

Which account is shown on the statement of owner's equity? a. Fees Earned b. Accounts Receivable c. Owner, Withdrawals d. Accounts Payable

C

Which financial statement illustrates the accounting equation? a. Statement of Owner's Equity b. Income Statement c. Balance Sheet d. Statement of Cash Flows

C

Which is correct concerning the adjusted trial balance? a. An adjusted trial balance lists all ledger account balances separated by assets and liabilities. b. An adjusted trial balance is a method used to prove the accounting to date has been posted properly. c. An adjusted trial balance is prepared after adjusting entries have been journalized and posted. d. The balance sheet accounts in the adjusted trial balance have the proper financial statement amounts.

C

Which is the proper order of accounting cycle activities? 1 A trial balance is prepared 2 Business Transactions occur and analyzed 3 Financial Statements are prepared 4 Information from the journal is posted to the ledger 5 Journal entries are recorded in the general journal 6 The worksheet is completed a. 5, 2, 6, 1, 4, 3 b. 1, 3, 6, 5, 4, 2 c. 2, 5, 4, 1, 6, 3 d. 2, 5, 1, 6, 3, 4

C

At the end of its fiscal year, the company had only $100 of office supplies on hand but the supplies account listed $550. What is the year end adjusting journal entry? a. debit supplies and credit supplies expense for $100 b. debit supplies expense and credit supplies for $100 c. debit supplies and credit supplies expense for $450 d. debit supplies expense and credit supplies for $450

D

Employees are paid every two weeks. On December 31, employees are owed $2,500 in salaries since the last payday on December 22. What is the adjusting journal entry? a. debit cash and credit salaries expense b. debit salaries expense and credit cash c. debit salaries payable and credit salaries expense d. debit salaries expense and credit salaries payable

D

Payment of salaries to employees is recorded as a(n) a. asset b. liability c. revenue d. expense

D

Select the accounts affected by the following transaction: TJ Rex receives the utility bill but will wait and pay it next month. a. Cash and Accounts Receivable b. Cash and Revenue c. Accounts Receivable and Revenue d. Accounts Payable and Expenses

D

Select the transaction that increases owner's equity. a. Received cash from a bill sent to customers last month b. Paid insurance for the next 3 months c. Purchase inventory for cash d. Provided consulting services for cash

D

The proper journal entry to record the $150 payment of last month's advertising bill would be: a. Cash 150 Advertising Expense 150 b. Advertising Expense 150 Accounts payable 150 c. Advertising Expense 150 Cash 150 d. Accounts payable 150 Cash 150

D

The purpose of adjusting entries is to: a. record revenues in the period in which they are earned b. record expenses in the period in which they are incurred c. the balances on the income statement and balance sheet are correct d. all of the above

D

Which of the following accounts has a normal credit balance? a. Office Equipment b. Salaries Expense c. Accounts Receivable d. Accounts Payable

D

Which of the following is represented on the income statement? a. Cash received from sale of equipment b. Accounts Payable c. Office Equipment d. Net loss

D

Which of the following will not appear on the statement of owner's equity? a. Net income b. Withdrawals c. Capital d. Fees Earned

D