Filters
Question type
Study Flashcards

Select the account below that normally has a credit balance.


A) Cash.
B) Office Equipment.
C) Wages Payable.
D) Dividends.
E) Sales Salaries Expense.

F) C) and E)
G) A) and D)

Correct Answer

verifed

verified

On February 5, Teddy's Catering purchased an oven that cost $35,000. The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance. Show the general journal entry to record this transaction.

Correct Answer

verifed

verified

2/5 Oven blured image blured image blured image blured image blured image blured image35,00...

View Answer

At the beginning of the current year, Trenton Company's total assets were $248,000 and its total liabilities were $175,000. During the year, the company reported total revenues of $93,000, total expenses of $76,000 and dividends of $5,000. There were no other changes in equity during the year and total assets at the end of the year were $260,000. Trenton Company's debt ratio at the end of the current year is:


A) 70.6%.
B) 67.3%.
C) 32.7%.
D) 48.6%.
E) 1.42%.

F) A) and E)
G) All of the above

Correct Answer

verifed

verified

Identify the statement that is incorrect.


A) Higher financial leverage involves higher risk.
B) Risk is higher if a company has more liabilities.
C) Risk is higher if a company has higher assets.
D) The debt ratio is one measure of financial risk.
E) Lower financial leverage involves lower risk.

F) A) and B)
G) A) and E)

Correct Answer

verifed

verified

Booth Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.

A) True
B) False

Correct Answer

verifed

verified

Mary Martin, the sole stockholder of Martin Consulting, received a $2,000 dividend from the company. Identify the general journal entry below that Martin Consulting will make to record the transaction.


A)  Dividends 2,000 Cash 2,000\begin{array} { | l | r | r | } \hline \text { Dividends } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}
B)  Corrunon Stock 2,000 Cash 2,000\begin{array} { | l | r | r | } \hline \text { Corrunon Stock } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}
C)  Dividends 2,000 Corrmon Stock 2,000\begin{array} { | l | r | r | } \hline \text { Dividends } & 2,000 & \\\hline \text { Corrmon Stock } & & 2,000 \\\hline\end{array}
D)  Cash 2,000 Corrmon Stock 2,000\begin{array} { | l | r | r | } \hline \text { Cash } & 2,000 & \\\hline \text { Corrmon Stock } & & 2,000 \\\hline\end{array}
E)  Cash 2,000 Dividends 2,000\begin{array} { | l | r | r | } \hline \text { Cash } & 2,000 & \\\hline \text { Dividends } & & 2,000 \\\hline\end{array}

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

A

J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record the cash payment. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.


A)  Irsurarice Expense 2,500 Cash 2,500\begin{array} { | l | r | r | } \hline \text { Irsurarice Expense } & 2,500 & \\\hline \text { Cash } & & 2,500 \\\hline\end{array}
B)  Cash 2,500 Irnsurance Expense 2,500\begin{array} { | l | r | r | } \hline \text { Cash } & 2,500 & \\\hline \text { Irnsurance Expense } & & 2,500 \\\hline\end{array}
C)  Cash 2,500 Prepaid Irsurarace 2,500\begin{array} { | l | r | r | } \hline \text { Cash } & 2,500 & \\\hline \text { Prepaid Irsurarace } & & 2,500 \\\hline\end{array}
D)  Prepaid Irsurance 2,500 Cash 2,500\begin{array} { | l | r | r | } \hline \text { Prepaid Irsurance } & 2,500 & \\\hline \text { Cash } & & 2,500 \\\hline\end{array}
E)  Irsurarice Expense 2,500 Prepaid Irsurarace 2,500\begin{array} { | l | r | r | } \hline \text { Irsurarice Expense } & 2,500 & \\\hline \text { Prepaid Irsurarace } & & 2,500 \\\hline\end{array}

F) D) and E)
G) B) and C)

Correct Answer

verifed

verified

The dividends account normally has a debit balance.

A) True
B) False

Correct Answer

verifed

verified

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.


A) Accounts Payable; Cash; Supplies.
B) Unearned Revenue; Accounts Payable; Dividends.
C) Building; Prepaid Insurance; Supplies Expense.
D) Cash; Prepaid Insurance; Equipment.
E) Notes Payable; Cash; Dividends.

F) A) and B)
G) All of the above

Correct Answer

verifed

verified

J. Brown Consulting immediately paid $500 cash for utilities for the current month. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record this transaction.


A)  Utilities Experise 500 Cash 500\begin{array} { | l | r | r | } \hline \text { Utilities Experise } & 500 \\\hline \text { Cash } & & 500 \\\hline\end{array}
B)  Cash 500 Utilities Expense 500\begin{array} { | l | r | r | } \hline \text { Cash } & 500 \\\hline \text { Utilities Expense } & & 500 \\\hline\end{array}
C)  Cash 500 Accounts Payable 500\begin{array}{|l|r|r|}\hline \text { Cash } & 500 & \\\hline \text { Accounts Payable } & & 500 \\\hline\end{array}
D)  Utilities Experise 500 Accourts Payable 500\begin{array} { | l | r | r | } \hline \text { Utilities Experise } & 500 \\\hline \text { Accourts Payable } & & 500 \\\hline\end{array}
E)  Prepaid Utilities 500 Accounts Payable 500\begin{array}{|l|r|r|}\hline \text { Prepaid Utilities } & 500 & \\\hline \text { Accounts Payable } & & 500 \\\hline\end{array}

F) A) and C)
G) A) and B)

Correct Answer

verifed

verified

A debit is used to record which of the following:


A) A decrease in an asset account.
B) A decrease in an expense account.
C) An increase in a revenue account.
D) An increase in the common stock account.
E) An increase in the dividends account.

F) All of the above
G) None of the above

Correct Answer

verifed

verified

A business uses a credit to record:


A) An increase in an expense account.
B) A decrease in an asset account.
C) A decrease in an unearned revenue account.
D) A decrease in a revenue account.
E) A decrease in a common stock account.

F) B) and E)
G) B) and D)

Correct Answer

verifed

verified

The following transactions occurred during July: • Received $900 cash for services provided to a customer during July. • Received $2,200 cash investment from Bob Johnson, the owner of the business. • Received $750 from a customer in partial payment of his account receivable which Arose from sales in June. • Provided services to a customer on credit, $375. • Borrowed $6,000 from the bank by signing a promissory note. • Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July?


A) $ 900.
B) $ 1,275.
C) $ 2,525.
D) $ 3,275.
E) $ 11,100.

F) C) and D)
G) All of the above

Correct Answer

verifed

verified

B

The ordering of accounts in a trial balance typically follows their identification number from the chart of accounts, that is, assets first, then liabilities, then common stock and dividends, followed by revenues and expenses.

A) True
B) False

Correct Answer

verifed

verified

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:


A) Account balance column.
B) Debit column.
C) Posting reference column.
D) Credit column.
E) Description column.

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

C

A ________ is a list of all the accounts used by a company and their identification codes but does not contain the balances.

Correct Answer

verifed

verified

Based on the following trial balance for Sally's Salon, prepare an income statement, statement of retained earnings, and a balance sheet. Sally Crawford, the sole stockholder, made no additional investments in the company during the year.  Sally’s Salon  Trial Balance  December 31 \begin{array}{|lc|}\hline & \text { Sally's Salon } \quad \quad \quad \quad \quad \quad \quad\\\hline \text { Trial Balance } \\\hline \text { December 31 } \\\end{array}  Cash $6,500 Accounts receivable 475 Beauty supplies 2,500 Beauty shop equipment 17,000 Accounts payable $745 Common Stock 21,155 Dividends 36,000 Revenue earned 72,000 Beauty supplies expense 3,425 Rent expense 6,000 Wages expense 22,000 Totals $93,900‾$93,900‾\begin{array}{|l|r|l|}\hline \text { Cash } & \$ 6,500 \\\hline \text { Accounts receivable } & 475 \\\hline \text { Beauty supplies } & 2,500 \\\hline \text { Beauty shop equipment } & 17,000 \\\hline \text { Accounts payable } & & \$ \quad 745\\\hline \text { Common Stock } & & 21,155\\\hline \text { Dividends } & 36,000 \\\hline \text { Revenue earned } && 72,000 \\\hline \text { Beauty supplies expense } & 3,425 \\\hline \text { Rent expense } & 6,000 \\\hline \text { Wages expense } & 22,000 \\\hline \text { Totals } & \underline {\$ 93,900}& \underline { \$ 93,900} \\\hline\end{array}

Correct Answer

verifed

verified

None...

View Answer

If insurance coverage for the next two years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.

A) True
B) False

Correct Answer

verifed

verified

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year: Assets Liabilities Beginning of the year $114,000 $68,000 End of the year 135,000 73,000 If stockholders invested an additional $12,000 in the business during the year in exchange for common stock, but no dividends were paid during the year, what was the amount of net income earned by Jerry's Butcher Shop?

Correct Answer

verifed

verified

Beginning equity = $114,000 - ...

View Answer

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

A) True
B) False

Correct Answer

verifed

verified

Showing 1 - 20 of 250

Related Exams

Exam 1

Managerial Accounting Concepts and Principles

250 Questions

Exam 2

Job Order Costing and Analysis

217 Questions

Exam 3

Process Costing and Analysis

230 Questions

Exam 4

Activity Based Costing and Analysis

220 Questions

Exam 5

Cost Behavior Cost-Volume-Profit Analysis

247 Questions

Exam 6

Variable Costing and Analysis

201 Questions

Exam 7

Master Budgets and Performance Planning

213 Questions

Exam 8

Flexible Budgets and Standard Costs

222 Questions

Exam 9

Performance Measurement and Responsibility Accounting

208 Questions

Exam 10

Relevant Costing for Managerial Decisions

117 Questions

Exam 11

Capital Budgeting and Investment Analysis

159 Questions

Exam 12

Reporting Cash Flows

239 Questions

Exam 13

Analysis of Financial Statements

233 Questions

Exam 14

Time Value of Money

84 Questions

Exam 16

Partnership Accounting

179 Questions

Show Answer