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Title: Question 1
QA_Ori:
a. Common asset accounts: cash, accounts receivable, notes receivable,
Title: Question 2
QA_Ori:
A note payable is formal promise, usually denoted by signing a promissory note
to pay a future amount. A note payable can be short-term or long-term,
Title: Question 3
QA_Ori:
There are several steps in processing transactions: (1) Identify and analyze the
transaction or event, including the source document(s), (2) apply
Title: Question 4
QA_Ori:
Title: Question 5
QA_Ori:
Title: Question 6
QA_Ori:
A transaction is first recorded in a journal to create a complete record of the
Title: Question 7
QA_Ori:
Title: Question 8
QA_Ori:
The recordkeeper prepares a trial balance to summarize the contents of the
Title: Question 9
QA_Ori:
Title: Question 10
QA_Ori:
Title: Question 11
QA_Ori:
The balance sheet provides information that helps users understand a company’s
Title: Question 12
QA_Ori:
The income statement lists the types and amounts of revenues and expenses,
Title: Question 13
QA_Ori:
An income statement user must know what time period is covered to judge
whether the company’s performance is satisfactory. For example, a
Title: Question 14
QA_Ori:
(a) Assets are probable future economic benefits obtained or controlled by a
specific entity as a result of past transactions or events. (b) Liabilities are
Title: Question 15
QA_Ori:
Title: Question 16
QA_Ori:
Debit balance accounts on the Polaris balance sheet include: Cash and cash
equivalents; Trade receivables, net; Inventories, net; Prepaid expenses and
Credit balance accounts on the Polaris balance sheet include: Accumulated
depreciation; Current portion of long-term borrowings under credit
Title: Question 17
QA_Ori:
The asset account with receivable in its account title is: Accounts receivable, less
Title: Question 18
QA_Ori:
Title: Question 19
QA_Ori:
Title: Quick Study 2-1
QA_Ori:
The likely source documents include:
a. Sales ticket
Title: Quick Study 2-2
QA_Ori:
a. B Balance sheet
b. E Statement of owner’s equity
Title: Quick Study 2-3
QA_Ori:
a. Debit d. Debit g. Credit
Title: Quick Study 2-4
QA_Ori:
a. Debit e. Debit i. Credit
Title: Quick Study 2-5
QA_Ori:
a. Debit e. Debit i. Credit
Title: Quick Study 2-6
QA_Ori:
15-May Cash 70,000
Equipment 30,000
D. Tyler, Capital 100,000
Owner invests cash and equipment.
services.
Title: Quick Study 2-7
QA_Ori:
The correct answer is a.
Explanation: If a $2,250 debit to Utilities Expense is incorrectly posted as a
Title: Quick Study 2-8
QA_Ori:
a. I e. B i. E
Title: Quick Study 2-9
QA_Ori:
a. Accounting under IFRS follows the same debit and credit system as under US
GAAP.
c. Accounting reports under both IFRS and US GAAP are likely different
depending on the extent of accounting controls and enforcement. For
b. The same four basic financial statements are prepared under IFRS and US
Title: Exercise 2-1
QA_Ori:
1 a. Analyze each transaction from source documents.
Title: Exercise 2-2
QA_Ori
a. 3 d. 5
Title: Exercise 2-3
QA_Ori:
Title: Exercise 2-4
QA_Ori:
Type of Normal Increase
Account Account Balance (Dr. or Cr.)
a. Cash............................................. asset debit debit
b. Legal Expense.............................. expense debit debit
c. Prepaid Insurance........................ asset debit debit
d. Land............................................. asset debit debit
Title: Exercise 2-5
QA_Ori:
a. Beginning accounts payable (credit)..........................................$152,000
b. Beginning accounts receivable (debit).......................................$102,500
c. Beginning cash balance (debit)..................................................$ ?
Title: Exercise 2-6
QA_Ori:
Of the items listed, the following effects should be included:
a. $28,000 increase in a liability account.
Explanation: This transaction created $62,000 in revenue, which is the value of
Title: Exercise 2-7
QA_Ori:
Aug
. 1 Cash 6,500
Photography Equipment
33,50
0
M. Harris, Capital
40,00
0
