Question 1

These transactions were completed by the art gallery opened by Zed Bennett. a.Bennett started the gallery,Artery,by investing $40,000 cash and equipment valued at $18,000 in exchange for common stock.
b.Purchased $70 of office supplies on credit.
c.Paid $1,200 cash for the receptionist's salary.
d.Sold a painting for an artist and collected a $4,500 cash commission on the sale.
e.Completed an art appraisal and billed the client $200.
What was the balance of the cash account after these transactions were posted?

Accepted Answer

A)  $12,230
B)  $12,430
C)  $43,300
D)  $43,430
E)  $61,430F) B) and C)
G) A) and D)

Question 2

Explain the recording and posting processes.

Accepted Answer

Information from business transactions a...

Question 3

Dividends are a type of business expense.

Accepted Answer

A) True 
 B)False

Question 4

The debt ratio is calculated by dividing total assets by total liabilities.

Accepted Answer

A) True 
 B)False

Question 5

Laurie Dexter starts a business called Camden Cleaning.Dexter invests $10,000 cash in Camden in exchange for its common stock.How would Camden record this transaction?

Accepted Answer

A)  Debit Cash for $10,000 and credit Cleaning Revenue for $10,000.
B)  Credit Cash for $10,000 and credit Cleaning Revenue for $10,000.
C)  Debit Cash for $10,000 and credit Common Stock for $10,000.
D)  Debit Cash for $10,000 and debit Common Stock for $10,000.
E)  Debit Common Stock for $10,000 and credit Cash for $10,000.F) A) and D)
G) B) and C)

Question 6

Which of the following statements are true?

Accepted Answer

A)  If the trial balance is in balance,it proves that no errors have been made in recording and posting transactions.
B)  The trial balance is a book of original entry.
C)  Another name for trial balance is chart of accounts.
D)  The trial balance is a list of all accounts from the ledger with their balances at a point in time.
E)  The trial balance is another name for the balance sheet as long as debits balance with credits.F) A) and B)
G) B) and E)

Question 7

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

Accepted Answer

A)  Dividend account
B)  Common stock account
C)  Drawing account
D)  T-account
E)  Balance column sheetF) A) and E)
G) A) and D)

Question 8

Double-entry accounting is an accounting system:

Accepted Answer

A)  That records each transaction twice.
B)  That records the effects of transactions and other events in at least two accounts with equal debits and credits.
C)  In which the impact of each transaction is checked twice to ensure there are no errors.
D)  That may only be used if T-accounts are used.
E)  That records the effects of transactions on at least two financial statements.F) B) and D)
G) C) and E)

Exam 2: Accounting System and Financial Statements

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

Correct Answer
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Correct Answer
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Explain the recording and posting processes.

Correct Answer
verified
Information from business transactions a...
View Answer

Dividends are a type of business expense.

Correct Answer
verified

Double-entry accounting is an accounting system:

Correct Answer
verified

Laurie Dexter starts a business called Camden Cleaning.Dexter invests $10,000 cash in Camden in exchange for its common stock.How would Camden record this transaction?

Correct Answer
verified

The debt ratio is calculated by dividing total assets by total liabilities.

Correct Answer
verified

Which of the following statements are true?

Correct Answer
verified

Exam 2: Accounting System and Financial Statements

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Explain the recording and posting processes.

Correct AnswerverifiedInformation from business transactions a...View AnswerShow Answer

Dividends are a type of business expense.

Correct AnswerverifiedShow Answer

Double-entry accounting is an accounting system:

Correct AnswerverifiedShow Answer

Laurie Dexter starts a business called Camden Cleaning.Dexter invests $10,000 cash in Camden in exchange for its common stock.How would Camden record this transaction?

Correct AnswerverifiedShow Answer

The debt ratio is calculated by dividing total assets by total liabilities.

Correct AnswerverifiedShow Answer

Which of the following statements are true?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Information from business transactions a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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