Accounting Test 2
A purchase is recognized in the accounting records when (1pts) the purchase requisition is sent to the purchasing department. title transfers from the seller to the buyer. payment is made for the item purchased. the buyer receives the seller's bill.
b
A transaction in which six months' rent is paid in advance. Which of the following journal entries records the transaction? (1pts) Rent Revenue - Debit; Cash - Credit Prepaid Rent - Debit; Cash - Credit Rent Expense- Debit; Cash - Credit Rent Receivable - Debit; Cash - Credit
b
The general journal does not have a column titled (1pts) Post. Ref. Account Balance. Date. Description.
b
1/1 An $80 credit item is accidentally posted as a debit. The trial balance column totals will therefore differ by
d
To find an explanation of a transaction, one should look at the (1pts) journal. ledger. chart of accounts. trial balance.
a
When collection is made on Accounts Receivable, (1pts) total assets remain the same. total assets increase. total assets decrease. owner's equity increases.
a
Which of the following accounts might be used when there is a time delay between a transaction and its related cash flow? (1pts) Accounts Payable Cash Prepaid Rent Fees Earned
a
Which of the following gives the correct sequence of accounting procedures? (1pts) Journal, ledger, trial balance, financial statements Financial statements, journal, ledger, trial balance Ledger, trial balance, journal, financial statements Financial statements, trial balance, ledger, journal
a
Which of the following is a business event that is not considered a recordable transaction? (1pts) A customer inquires about the availability of a service A customer purchases a service A copany receives a product previously ordered A company pays an employee for work performed
a
The primary purpose of the trial balance is to test the (1pts) analysis of transactions. equality of debit and credit balances in the ledger. equality of debit and credit entries in the journal. recording of transactions
b
The process of transferring journal entry information from the journal to the ledger is called (1pts) journalizing. posting. analyzing. footing.
b
When a business records revenue before it has been earned, it has violated the measurement issue of (1pts) evaluation recognition valuation classification
b
When a service has been performed, but no cash has been received, which of the following statements is true? (1pts) The entry would include a credit to Unearned Revenue. The entry would include a debit to Accounts Receivable. The entry would include a debit to Accounts Payable. No journal entry would be made.
b
Which of the following accounts has a normal credit balance? (1pts) Automotive Equipment Advertising Fees Earned Interest Expense Owner's Withdrawals
b
Which of the following accounts is increased with a credit? (1pts) Supplies Fees Earned Supplies Expense Jane Garcia, Withdrawals
b
Which of the following accounts is increased with a debit? (1pts) Jim Webb, Capital Jim Webb, Withdrawals Legal Fees Earned Rent Payable
b
1/1 If Accounts Receivable has debit postings of $29,000, credit postings of $22,000, and a normal ending balance of $24,000, which of the following was its beginning balance? (1pts) $31,000 Cr. $31,000 Dr. $17,000 Dr. $17,000 Cr.
c
Which of the following accounts is decreased with a credit? (1pts) Owner's Capital Unearned Revenue Insurance Expense Advertising Fees Earned
c
Which of the following accounts is decreased with a debit? (1pts) Owner's Withdrawals Interst Expense Notes Payable Cash
c
1/1 If Accounts Payable has debit postings of $17,000, credit postings of $14,000, and a normal ending balance of $6,000, what was its beginning balance? (1pts) $3,000 Cr. $9,000 Dr. $3,000 Dr. $9,000 Cr.
d
When a business erroneously records expenses as assets, it has violated the measurement issue of (1pts) Valuation Recognition Communication Classification
d
Which of the following accounts has a normal debit balance? (1pts) Owner's Capital Wages Payable Unearned Fees Owner's Withdrawals
d
Which of the following errors will cause the trial balance to be out of balance? (1pts) An entire transaction was entered in the general journal as $27 instead of $72. A debit entry was entered in the wrong debit account. An entire transaction was omitted from the general journal. The balance of an account was incorrectly computed.
d
