Kyle Evans Test 1 Corrections

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Kyle Evans

Test 1 Corrections

Question 1:

Correct answer: A

1111

According to page 51, a general journal is used to record any transaction. To record entries, you

must have the date of the transaction, titles of accounts debited and credited, amounts, and a

brief explanation of the transaction.

Question 2:

Correct answer: A

According to pg.8, revenue recognition principle is recognized when (1) goods or services are

provided to customers and (2) at the amount expected to be received from the customer.

Revenue (sales) is the amount received from the customer. Revenue (sales) is the amount

received from selling products and services.

Question 3:

Correct answer: D

According to pg.7, Objectivity means that information is supported by independent, unbiased

evidence.

Question 4:

Correct Answer: A

According to pg.50, total debits must equal total credits for all entries, and total debit account

balance must equal total credit account balances.

Question 6:

Correct Answer: B

According to pg.8, a corporation has 1 or more owners called stockholders. Being a stockholder

is a separate entity from being an owner. Stockholders can get investors by selling shares of

corporate ownership.

Question 7:

Correct Answer: B

According to pg.110, adjusting entries affect AT LEAST one balance sheet account and AT LEAST

one income statement account.

Question 8:

Correct Answer: D

According to pg.52, in order to be recorded, general journal needs the transaction date,

explanation of the transaction, the names of the accounts involved, as well as the amount of

each debit and credit. The only answer that is out of place is answer D, the balance in each

account.

Question 9:

Correct Answer: E

According to pg.50, a double-entry account system is an account system in which each

transaction needs at least two accounts are involved, with at least one debit and one credit, as

well total amount debited must equal total amount credited.

Question 10:

Correct Answer: C

According to class notes, revenues and liabilities normally have balances within a credit column

of a business’s trial balance.