My Subscriptions/Courses/ACC110:Spring 2018-Intro to Financial REporting/Chapter 2/Chapter 2 QuizStarted onSaturday, 3 February 2018, 7:30 PMStateFinishedCompleted onSaturday, 3 February 2018, 7:48 PMTime taken18 mins 12 secsGrade9.00out of 9.00 (100%)QUESTION 1CorrectMark 1.00 out of 1.00In the accounting cycle, preparing financial statements comes before which of the following steps?Select one:Analyzing transactionsRecording transactionsPreparing an unadjusted trial balancePrepare a post-closing trial balance The correct answer is: Prepare a post-closing trial balance
QUESTION 2CorrectMark 1.00 out of 1.00The Schultz Corporation purchased equipment costing $5,000 by taking out a bank loan. What would be the effecton the accounting equation?Select one:AssetsLiabilitiesShareholders' EquityIncrease$5,000Decrease$5,000No EffectAssetsLiabilitiesShareholders' EquityIncrease$5,000Increase$5,000No EffectAssetsLiabilitiesShareholders' EquityDecrease$5,000Decrease$5,000No EffectAssetsLiabilitiesShareholders' EquityDecrease$5,000Increase$5,000No EffectThe correct answer is:AssetsLiabilitiesShareholders' EquityIncrease$5,000Increase$5,000No Effect
QUESTION 3CorrectMark 1.00 out of 1.00The Inventory account has a normal balance of ________ and is increased via a _______ .Select one:Debit; Debit Credit; DebitDebit; CreditCredit; CreditThe correct answer is: Debit; DebitQUESTION 4CorrectMark 1.00 out of 1.00A journal entry that contains more than just two accounts is called?Select one:An adjusting journal entryA closing journal entryA compound journal entry A complex journal entryThe correct answer is: A compound journal entryQUESTION 5CorrectMark 1.00 out of 1.00Which of the following statements is true regarding the general ledger?Select one:All transactions are initially recorded in the general ledger.The general ledger is produced based on the balances in the balance sheet.The general ledger is produced based on the balances in the trial balance.The general ledger is a collection of all of the accounts in the accounting system. The correct answer is: The general ledger is a collection of all of the accounts in the accounting system.
QUESTION 6CorrectMark 1.00 out of 1.00On December 1, the owners of Smith & Sons invested $10,000 cash in the business in exchange for shares ofcommon stock. What is the correct journal entry?Select one:Account NameDebitCreditCommon stock10,000Cash10,000Account NameDebitCreditCash10,000Due to owners10,000Account NameDebitCreditCash10,000Common stock10,000Account NameDebitCreditDue to owners10,000Cash10,000The correct answer is:Account NameDebitCreditCash10,000Common stock10,000
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