Chapter 02 – Double-Entry Accounting
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Page 51
124. Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid
later. The correct entry would be
a.
Equipment 2,250
Cash 2,250
b.
Cash 2,250
Accounts Payable 6,250
Equipment 8,500
c.
Equipment Expense 8,500
Accounts Payable 2,250
Cash 6,250
d.
Equipment 8,500
Accounts Payable 6,250
Cash 2,250
ANSWER:
d
RATIONALE:
Debit
Credit
Equipment
8,500
Accounts Payable
6,250
Cash
2,250
Accounts Payable = $8,500 – $2,250 = $6,250
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.04 – Cash vs. Accrual
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
125. The ____ is where a transaction can first be found in the accounting records.
a.
chart of accounts
b.
income statement
c.
balance sheet
d.
journal
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
Copyright Cengage Learning. Powered by Cognero.
Page 54
130. Which of the following accounts would be increased with a credit?
a.
Land; Accounts Payable; Dividends
b.
Accounts Payable; Unearned Revenue; Common Stock
c.
Dividends; Accounts Receivable; Unearned Revenue
d.
Cash; Accounts Receivable; Common Stock
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
131. In accordance with the debit and credit rules, which of the following is true?
a.
Debits increase assets.
b.
Credits increase assets.
c.
Debits increase both assets and common stock.
d.
Credits increase both assets and liabilities.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
132. All of the following accounts are increased with a debit except
a.
Unearned Revenues
b.
Land
c.
Accounts Receivable
d.
Cash
ANSWER:
a
POINTS:
1
Chapter 02 – Double-Entry Accounting
Copyright Cengage Learning. Powered by Cognero.
Page 57
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
138. Which of the following transactions increases stockholders’ equity?
a.
Supplies are purchased on account.
b.
Services are provided on account.
c.
Cash is received from customers on account.
d.
Utility bill will be paid next month.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
139. Which of the following groups of accounts are increased with a debit?
a.
assets, liabilities, stockholders’ equity
b.
assets, dividends, expenses
c.
assets, revenues, expenses
d.
assets, liabilities, revenues
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
Chapter 02 – Double-Entry Accounting
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Page 59
a.
The accounting equation remains in balance.
b.
The sum of all debits is always equal to the sum of all credits in each journal entry.
c.
Each business transaction will have two debits.
d.
Every transaction affects at least two accounts.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
143.
March
6
Cash
2,500
Unearned Fees
2,500
????????????.
What is the best explanation for this journal entry?
a.
Received cash for services performed.
b.
Received cash for services to be performed in the future.
c.
Paid cash in advance for services to be performed.
d.
Performed services for which cash is owed.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.04 – Cash vs. Accrual
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
144.
April
14
Equipment
15,000
Cash
5,000
Note Payable
10,000
Chapter 02 – Double-Entry Accounting
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Page 60
????????????.
Which is the best explanation for this journal entry?
a.
Purchased equipment; paid cash of $5,000, with the remainder to be paid in the future.
b.
Purchased equipment; paid cash of $10,000, with the remainder to be received in the future.
c.
Purchased equipment with cash.
d.
Purchased equipment on account.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.04 – Cash vs. Accrual
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
145. The process of transferring the debits and credits from the journal entries to the accounts is called
a.
sliding
b.
transposing
c.
journalizing
d.
posting
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.05 – Accounting Cycle
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
146. The posting process will include the transfer of which of the following data from the journal to the account?
a.
date, amount (debit or credit)
b.
date, amount (debit or credit), journal page number
c.
amount (debit or credit), account number
d.
date, amount (debit or credit), account number
ANSWER:
b