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Exam 2: The Accounting Cycle: During the Period

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Question 21

Multiple Choice

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Which of the following is not an asset account?

A) Supplies.
B) Accounts Payable.
C) Equipment.
D) Accounts Receivable.

E) C) and D)
F) None of the above

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Question 22

Multiple Choice

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The following statements pertain to recording transactions.Which of them are true? I.Total debits should equal total credits. II) It is possible to have multiple debits or credits in one journal entry. III) Assets are always listed first in journal entries. IV) Some journal entries will have debits only.

A) I only.
B) I and II.
C) I,II,and IV.
D) II,III,and IV.

E) A) and D)
F) B) and D)

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Question 23

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Revenues have the effect of increasing retained earnings.

Which one of the following accounts will have a credit balance?

Expenses have the effect of decreasing retained earnings.

For each of the following accounts,indicate whether we use a debit or a credit to increase the balance of the account. (a)Accounts Receivable (b)Accounts Payable (c)Salaries Expense (d)Service Revenue (e)Supplies (f)Common Stock (g)Advertising Expense (h)Dividends

Childers Service Company provides services to customers totaling $3,000,for which it billed the customers.How would the transaction be recorded?

Xenon Corporation borrows $75,000 from First Bank.Xenon Corporation records this transaction with a:

The following transactions occur for the Hamilton Manufacturers. (a)Provide services to customers on account for $4,500. (b)Purchase equipment by signing a note with the bank for $10,000. (c)Pay advertising of $1,500 for the current month. Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.

Assume that $18,000 cash is paid for insurance to cover the next year.The appropriate debit and credit are:

If a transaction causes total assets of the company to increase by $5,000 and total liabilities to increase by $3,000,then stockholders' equity increases by $8,000.

An account receivable can best be defined as:

On July 31,ALOE Inc.received $5,000 cash from a customer who previously purchased ALOE's products on account.What entry should ALOE Inc.record at the time it receives cash?

When a company issues common stock for cash,what is the effect on the accounting equation for the company?

Paying employees' salaries for the current period is recorded with a debit to Salaries Expense.

Use the following information to prepare a trial balance.

Using the notion that the accounting equation (Assets = Liabilities + Stockholders' Equity)must remain in balance,indicate whether each of the following transactions is possible. (a)Cash decreases;Accounts Payable decreases. (b)Salaries Expense increases;Salaries Payable decreases. (c)Accounts Receivable decreases;Service Revenue increases.

Revenues have what effect on the accounting equation?

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Costs to generate revenues.

Schooner Inc.purchased equipment by signing a note payable.This transaction would be recorded as: