FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: The Accounting Information System

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

After recording each transaction,total assets must equal total liabilities plus stockholders' equity.

A) True
B) False

Correct Answer

verified

True

Question 2

True/False

Review LaterAdd Note

Review Later

Receiving cash in advance from a customer for services to be provided in the future causes assets to increase and stockholders' equity to increase.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

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

Describe the difference between external events and internal events and give two examples of each.

Which of the following accounts would normally have a credit balance?

Unearned Revenue is a liability account.

If a company provides services on account,which of the following is true?

A trial balance is a list of all accounts and their balances at a particular date,showing that assets equal liabilities.

On July 7,2012,Saints Inc.received $10,000 in cash from a customer for services to be provided on October 10,2012.Which of the following describes how the transaction should be recorded on July 7,2012?

Rite Shoes was involved in the transactions described below.Record each transaction.If an entry is not required,state "No Entry." (a)Purchased $8,200 of supplies on account. (b)Paid weekly salaries,$920. (c)Provide services to customers: Cash: $7,100; On account: $5,300. (d)Paid for supplies purchased in (a)above. (e)Placed an order for $6,200 of supplies.

A company pays $12,000 to purchase a one-year insurance policy.Record the transaction.

Clement Company paid an account payable related to a previous utility bill of $1,000.This transaction should be recorded as follows on the payment date:

Posting transactions to the T-accounts involve:

Receiving cash in advance from customers increases the Service Revenue account.

The following amounts are reported in the ledger of Mariah Company: $\begin{array} { l r } \text { Assets } & \$ 80,000 \\\text { Liabilities } & 36,000 \\\text { Retained Earnings } & 12,000\end{array}$ What is the balance in the Common Stock account?

Tomlin & Company provides music for special occasions.On January 14,the Smith family hired Tomlin for an upcoming family wedding for an agreed upon fee of $10,000.The wedding was scheduled for May 23.As part of the agreement,the Smiths paid Tomlin half of the fee at the end of April with the remaining amount due by the end of June.How would Tomlin record the receipt of the final payment in June?

Expenses normally carry a _______ balance and are shown in the _________.

Investments by stockholders have what effect on the accounting equation?

A company pays $800 dividends to stockholders.Indicate the amount of increases and decreases in the accounting equation.

Following are transactions of Gotebo Tanners,Inc.,a new company,during the month of January 2012: 1.Issued 10,000 shares of common stock for $15,000 cash. 2) Purchased land for $12,000,signing a note payable for the full amount. 3) Purchased office equipment for $1,200 cash. 4) Received cash of $14,000 for services provided to customers during the month. 5) Purchased $300 of office supplies on account. 6) Paid employees $10,000 for their first month's salaries. What was the balance of Gotebo's Cash account following these six transactions?