Question 1   Which of the following represents the correct flow of...

Question 1

1.  Which of the following represents the correct flow of accounting data?
2. Transactions occur; transactions are analyzed; transactions are journalized and posted; source documents are prepared
3. Transactions occur; source documents are prepared; transactions are journalized and posted;
4. Transactions occur; source documents are prepared; transactions are analyzed; transactions are journalized and posted
5. Source documents are prepared; transactions occur; transactions are analyzed; transactions are journalized and posted

5 points 

Question 2

1.  Which of the following is a liability account?
2. Prepaid advertising
3. Cash
4. Building
5. Unearned rent

5 points 

Question 3

1.  A business purchases equipment by paying $7,517 in cash and issuing a note payable of $19,410. Which of the following occurs?
2. Cash is credited for $7,517, Equipment is credited for $26,927, and Notes Payable is debited for $19,410.
3. Cash is credited for $7,517, Equipment is debited for $26,927, and Notes Payable is credited for $19,410.
4. Cash is debited for $7,517, Equipment is debited for $19,410, and Notes Payable is credited for $26,927.
5. Cash is debited for $7,517, Equipment is credited for $19,410, and Notes Payable is debited for $11,893.

5 points 

Question 4

1.  Accounts payable is a(n) __________ account and has a normal __________ balance.
2. liability; debit
3. asset; debit
4. liability; credit
5. asset; credit

5 points 

Question 5

1.  A sole proprietorship reported the following transactions for the month of March. The transactions have been journalized and posted to the proper accounts.
2. 
   
3. March 1 The business received $8,000 cash from the owner in exchange for capital.
4. March 2 Paid the first month's rent of $600.
5. March 3 Purchased equipment by paying $1,000 cash and executing a note payable for $3,000.
6. March 4 Purchased office supplies for $600 cash.
7. March 5 Billed a client for $11,000 of design services completed.
8. March 6 Received $9,000 on account for the services previously recorded.
9. 
   
10. What is the balance in Accounts Receivable?
11. $9,000
12. $2,000
13. $3,000
14. $11,000

5 points 

Question 6

1.  The ability of a company to pay its debts can be evaluated by using the __________.
2. earnings per share
3. return on assets ratio
4. debt ratio
5. fully diluted earnings per share

5 points 

Question 7

1.  A shortened form of the ledger is called a __________.
2. working account
3. summary account
4. chart of accounts
5. T-account

5 points 

Question 8

1.  Donaldson's Delivery Company began operations on January 1, 2019. The following Trial Balance was prepared on December 31, 2019.
2. 
   
3. Donaldson's Delivery Service Company
4.                                          Trial Balance
5.                                      December 31, 2019
6.  
7. Account Title                            Debit               Credit
8. Cash                                      $15,500
9. Accounts Receivable                 8,000
10. Prepaid Rent                              2,400
11. Office Supplies                           1,400
12. Land                                        25,000
13. Building                                    32,000
14. Equipment                               23,000
15. Accounts Payable                                           $10,400
16. Unearned Revenue                                            2,500
17. Notes Payable                                                  20,000
18. Donaldson, Capital                                           57,000
19. Donaldson, Withdrawals             6,400
20. Service Revenue                                              83,900
21. Salaries Expense                     28,000
22. Rent Expense                          18,000
23. Truck Expense                         12,400
24. Office Expense                          1,700          ________
25. Total                                    $173,800           $173,800
26. 
    
27. 
    
28. 
    
29. What is the net income for the year ending December 31, 2019?
30. $17,400
31. $23,800
32. $26,300
33. $74,400

5 points 

Question 9

1.  The accounts payable account of Waterford Company has the following postings:
2. 
   
4. 
   
5. Calculate the ending balance of the account.
6. $14,000 credit
7. $18,000 debit
8. $18,000 credit
9. $7,000 debit

5 points 

Question 10

1.  Which of the following sequences states the order in which accounts are listed on a trial balance?
2. Equity → Assets → Liabilities
3. Liabilities → Assets → Equity
4. Assets → Equity → Liabilities
5. Assets → Liabilities → Equity

5 points 

Question 11

1.  Accounts receivable is a(n) __________ account and has a normal __________ balance.
2. liability; debit
3. asset; debit
4. liability; credit
5. asset; credit

5 points 

Question 12

1.  The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is a(n) __________.
2. prepaid note
3. notes payable
4. notes receivable
5. accounts receivable

5 points 

Question 13

1.  The following transactions for the month of March have been journalized and posted to the proper accounts of a sole proprietorship.
2. 
   
3. March 1 The business received $10,000 cash from the owner of the business, Morris Tharps. The business gave capital to Morris Tharps.
4. March 2 Paid the first month's rent of $1,000.
5. March 3 Purchased equipment by paying $2,000 cash and executing a note payable for $5,000.
6. March 4 Purchased office supplies for $710 cash.
7. March 5 Billed a client for $9,000 of design services completed.
8. March 6 Received $7,600 on account for the services previously recorded.
9. 
   
10. What is the balance in Cash on March 6?
11. $14,890
12. $13,890
13. $15,890
14. $15,600

5 points 

Question 14

1.  A customer's promise to pay in the future for services or goods sold is called a(n) __________.
2. accounts receivable
3. accounts payable
4. unearned revenue
5. notes payable

5 points 

Question 15

1.  A business performs services for $26,000 and collects cash from the customer. Which of the following accounts will be debited?
2. Cash
3. Accounts receivable
4. Service revenue
5. Accounts payable

5 points 

Question 16

1.  Which one of the following account groups will decrease with a debit?
2. Assets and expenses
3. Revenues and expenses
4. Liabilities and revenues
5. Assets and liabilities

5 points 

Question 17

1.  Which of the following accounts increases with a debit?
2. Prepaid rent
3. Interest payable
4. Accounts payable
5. Owner, capital

5 points 

Question 18

1.  Which of the following accounts is an asset?
2. Salaries expense
3. Accounts payable
4. Service revenue
5. Prepaid expense

5 points 

Question 19

1.  A listing of all accounts in numerical order is called a(n) __________.
2. ledger
3. journal
4. income statement
5. chart of accounts

5 points 

Question 20

1.  The following are the current month's balances for ABC Financial Services Company before preparing the trial balance.
2. 
   
3. Accounts Payable       $9,000Revenue5,000Cash2,000Expenses15,500Furniture11,000Accounts Receivable12,000Miller, Capital?Notes Payable6,500
4. What amount should be shown for Miller, Capital on the trial balance?
5. $42,000
6. $20,000
7. $15,500
8. $25,000