ACCN 2010 Quiz 2

ACCN 2010 Quiz 2 | Tulane University

Question 1

In the first month of operations, the total of the debit entries to the Cash account amounted to $8540 and the total of the credit entries to the Cash account amounted to $4880. At the end of the month, the Cash account has a

·         $3660 credit balance.

·         $3660 debit balance.  

·         $8540 debit balance.

·         $4880 credit balance.

 

Question 2

At December 1, 2022, Marigold Corp. Accounts Receivable balance was $13100. During December, Marigold had credit sales of $35100 and collected accounts receivable of $28080. At December 31, 2022, the Accounts Receivable balance is

·         $48200 debit

·         $20120 debit .  

·         $13100 debit

·         $20120 credit

 

Question 3

A journal provides

·         the balances for each account.

·         a list of all accounts used in the business.

·         information about a transaction in several different places.

·         a chronological record of transactions.

 

Question 4

When a company receives a utility bill but will not pay it right away, it should

·         debit Accounts Payable and credit Utilities Expense.

·         debit Utilities Expense and credit Accounts Payable.

·         make no entry until the bill is paid.

·         debit Utilities Expense and credit Accounts Receivable.

.

Question 5

The purpose of the ledger is to

·         record chronologically the day’s transactions.

·         keep a record of documentation to support each transaction.

·         keep in one place all information about changes in specific account balances.

·         make sure that all assets, liabilities, etc., have normal balances at all times.

 

Question 6

The Unearned Service Revenue account is classified as a(n)

·         asset.

·         liability

·         revenue.

·         expense.

 

Question 7

On July 7, 2022, Concord Corporation received cash $1120 for services rendered. The entry to record this transaction will include

·         a credit to Accounts Payable of $1120.

·         a debit to Service Revenue of $1120.

·         a debit to Cash of $1120

·         a credit to Accounts Receivable of $1120.

 

Question 8

An investment by the stockholders in a business increases

·         liabilities and stockholders’ equity.

·         assets and stockholders’ equity

·         assets only.

·         assets and liabilities.

 

Question 9

Genesis Company buys equipment for $900 on credit. This transaction will immediately affect the

 

·         income statement only.

·         income statement, retained earnings statement, and balance sheet.

·         income statement and retained earnings statement only.

·         balance sheet only

 

Question 10

If cash is received in advance from a customer

·         liabilities will increase.

·         assets will decrease.

·         retained earnings will increase.

·         stockholders' equity will decrease.

 

Question 11

If total liabilities increase by $5,000 then

·         assets increase by $5,000, or stockholders’ equity decrease by $5,000

·         assets decrease by $5,000.

·         stockholders’ equity increase by $5,000.

·         assets and stockholders’ equity each increase by $2,500.

 

Question 12

Correct! All assets increase with debits. All liabilities increase with credits.

Debits

·         decrease both assets and liabilities.

·         increase both assets and liabilities.

·         decrease assets and increase liabilities.

·         increase assets and decrease liabilities.

 

Question 13

Which accounts normally have debit balances?

·         Assets, expenses, and retained earnings

·         Assets, dividends, and expenses

·         Assets, liabilities, and dividends

·         Assets, expenses, and revenues

 

Question 14

Which of the following is the correct sequence of events?

·         Analyze a transaction; record it in the journal; post it to the ledger

·         Record a transaction in the journal; analyze the transaction; post it to the ledger

·         None of the answer choices provides the correct sequence

·         Analyze a transaction; post it to the ledger; record it in the journal

 

Question 15

What journal entry is recorded as a result of issuing stock to investors for cash?

·         A debit to Common Stock and a credit to Cash

·         A debit to Cash and a credit to Common Stock

·         A debit to Cash and a credit to Retained Earnings

·         A credit to Cash and a debit to Retained Earnings

 

Question 16

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

·         that all accounts reflect correct balances.

·         no errors can be discovered.

·         the mathematical equality of the accounting equation.

·         no errors have been made.

 

Question 17

An accountant has debited an asset account for $1220 and credited a liability account for $610. What can be done to complete the recording of the transaction?

·         Debit another asset account for $610.

·         Debit a stockholders’ equity account for $610.

·         Credit a different asset account for $610.

·         Nothing further must be done.

 

 

Question 17

 

Skysong, Inc.'s trial balance reported the following balances at the end of its first year:

 

                Cash      $11480

                Prepaid insurance            570

                Accounts receivable       2870

                Accounts payable            2300

                Notes payable   3440

                Common stock  4430

                Dividends            570

                Revenues            23780

                Expenses             14350

 

 

What amount did Skysong, Inc.'s trial balance show as total credits?

·         $34520

·         $33950

·         $33380

·         $35090

 

Question 18

At January 1, 2022, Metlock, Inc. reported Retained Earnings of $315000. During 2022, Metlock had a net loss of $67500 and paid dividends to the stockholders of $45000. At December 31, 2022, the balance in Retained Earnings is

·         $270000 credit.

·         $315000 debit.

·         $247500 debit.

·         $202500 credit.

 

Question 19

All of the following statements regarding the double-entry system are true except

·         when using the double-entry system, the sum of all debits to the accounts must equal the sum of all credits.

·         both sides of the accounting equation must be affected when recording a transaction using the double-entry system.  

·         the double-entry system provides a logical method for recording transactions.

·         a two-sided effect of each transaction is recorded in appropriate accounts when using the double-entry system.