Filters
Question type
Study Flashcards

Posting is the process of determining the balance in an account by subtracting debits and credits.

A) True
B) False

Correct Answer

verifed

verified

The following account balances were taken from the adjusted trial balance of Kendall Company: The following account balances were taken from the adjusted trial balance of Kendall Company: What is the Retained Earnings account balance that will be included on the post-closing trial balance? A) $19,900 B) $7,400 C) $2,900 D) $24,400 What is the Retained Earnings account balance that will be included on the post-closing trial balance?


A) $19,900
B) $7,400
C) $2,900
D) $24,400

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

Correct Answer

verifed

verified

During a company's first year of operations,the asset account,Office Supplies,was debited for $2,300 for the purchases of supplies.At year-end,a physical count of the supplies on hand revealed that $825 of unused supplies were available for future use.How will the related adjusting entry affect the company's financial statements?


A) Expenses will increase and assets will decrease by $1,475.
B) Assets and expenses will both increase by $825.
C) Expenses and assets will both increase by $1,475.
D) The related adjusting entry has no effect on net income or the accounting equation.

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

Correct Answer

verifed

verified

Which one of the following would not be included in a closing entry?


A) A credit to Rent Expense
B) A debit to Unearned Revenue
C) A debit to Service Revenue
D) A credit to Dividends

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

Correct Answer

verifed

verified

Which of the following statements is true?


A) Adjusting entries are recorded after the closing entries have been recorded.
B) Equal totals in a trial balance guarantees that no errors were made in the recording process.
C) Debits are equal to credits only after closing entries have been recorded.
D) The balance in the retained earnings account in the trial balance will equal the retained earnings balance on the balance sheet only after closing entries have been posted to the general ledger.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Which of the following statements is true regarding a trial balance that balances?


A) All transactions have been properly recorded.
B) There are no missing transactions.
C) This equality can only be achieved after closing entries have been recorded and posted to the ledger accounts.
D) The equality of debits and credits has been proven.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

The closing entry for the Dividends account would involve which of the following?


A) A credit to Retained Earnings
B) A credit to Dividends
C) A credit to Common Stock
D) A credit to Cash

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

To record an asset source transaction,an asset account would be debited and a liability or stockholders' equity credited.

A) True
B) False

Correct Answer

verifed

verified

Which of the following accounts is increased with a credit?


A) Accounts Receivable
B) Prepaid Rent
C) Common Stock
D) Dividends

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

Correct Answer

verifed

verified

-Which of the following is a true statement? (Note: A statement may be true even if it does not identify all accounts that have debit balances on that particular financial statement) . A) Account numbers 1,3,and 5 normally have debit balances. B) Account numbers 2,4,and 5 normally have debit balances. C) Account numbers 2,5,and 8 normally have debit balances. D) Account numbers 4,5,and 6 normally have debit balances. -Which of the following is a true statement? (Note: A statement may be true even if it does not identify all accounts that have debit balances on that particular financial statement) .


A) Account numbers 1,3,and 5 normally have debit balances.
B) Account numbers 2,4,and 5 normally have debit balances.
C) Account numbers 2,5,and 8 normally have debit balances.
D) Account numbers 4,5,and 6 normally have debit balances.

E) All of the above
F) B) and D)

Correct Answer

verifed

verified

A company's adjusted trial balance provides the information needed to prepare the balance sheet and income statement.

A) True
B) False

Correct Answer

verifed

verified

Manhattan Company recorded an adjusting entry to accrue interest owed of $300 as of December 31,Year 1.When the related note was paid during Year 2,the company paid $450 in interest.Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry. )


A) Manhattan Company recorded an adjusting entry to accrue interest owed of $300 as of December 31,Year 1.When the related note was paid during Year 2,the company paid $450 in interest.Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry. ) A) B) C) D)
B) Manhattan Company recorded an adjusting entry to accrue interest owed of $300 as of December 31,Year 1.When the related note was paid during Year 2,the company paid $450 in interest.Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry. ) A) B) C) D)
C) Manhattan Company recorded an adjusting entry to accrue interest owed of $300 as of December 31,Year 1.When the related note was paid during Year 2,the company paid $450 in interest.Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry. ) A) B) C) D)
D) Manhattan Company recorded an adjusting entry to accrue interest owed of $300 as of December 31,Year 1.When the related note was paid during Year 2,the company paid $450 in interest.Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry. ) A) B) C) D)

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts?


A) Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts? A) B) C) D)
Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts? A) B) C) D)
B) Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts? A) B) C) D)
Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts? A) B) C) D)
C) Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts? A) B) C) D)
Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts? A) B) C) D)
D) Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts? A) B) C) D)
Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period.How would the related adjusting entry be recorded in the company's T-accounts? A) B) C) D)

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

Correct Answer

verifed

verified

The general journal is a list of a business's accounts and their account numbers.

A) True
B) False

Correct Answer

verifed

verified

Chestnut,Inc.reported the following balances on its balance sheet at December 31,Year 1: Chestnut,Inc.reported the following balances on its balance sheet at December 31,Year 1: On January 1,Year 2,Chestnut purchased equipment for $40,000 on account.What is the company's debt-to-assets ratio immediately after the purchase of the equipment? A) 0.42 B) 0.46 C) 0.37 D) 0.34 On January 1,Year 2,Chestnut purchased equipment for $40,000 on account.What is the company's debt-to-assets ratio immediately after the purchase of the equipment?


A) 0.42
B) 0.46
C) 0.37
D) 0.34

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

What is the term used to describe the left side of a T-account?


A) Equity Side
B) Debit Side
C) Credit Side
D) Claims Side

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

Correct Answer

verifed

verified

The financial statement ratio that may be of greatest interest to a company's stockholders is the amount of its return-on-assets ratio.

A) True
B) False

Correct Answer

verifed

verified

Which of the following statements about the entry to record depreciation is true?


A) The entry involves a credit to a liability.
B) The entry involves a credit to Depreciation Expense.
C) The entry involves a credit to the asset being depreciated.
D) The entry involves a credit to a contra-asset account.

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

Correct Answer

verifed

verified

Which of the following accounts is decreased with a credit?


A) Unearned Revenue
B) Prepaid Insurance
C) Accounts Payable
D) Service Revenue

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

Correct Answer

verifed

verified

A high debt-to-asset ratio may indicate that a company has a high level of debt risk.

A) True
B) False

Correct Answer

verifed

verified

Showing 81 - 100 of 106

Related Exams

Exam 1

An Introduction to Accounting

94 Questions

Exam 2

Accounting for Accruals and Deferrals

92 Questions

Exam 4

Accounting for Merchandising Businesses

114 Questions

Exam 5

Accounting for Inventories

86 Questions

Exam 6

Internal Control and Accounting for Cash

82 Questions

Exam 7

Accounting for Receivables

83 Questions

Exam 8

Accounting for Long-Term Operational Assets

110 Questions

Exam 9

Accounting for Current Liabilities and Payroll

86 Questions

Exam 10

Accounting for Long-Term Debt

105 Questions

Exam 11

Proprietorships,partnerships,and Corporations

92 Questions

Exam 12

Statement of Cash Flows

88 Questions

Exam 13

Financial Statement Analysis

108 Questions

Show Answer