FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Accounting System and Financial Statements

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Joel Consulting received $3,000 from a customer for services provided. Joel's general journal entry to record this transaction will be:

A) Debit Services Revenue, credit Accounts Receivable.
B) Debit Cash, credit Accounts Payable.
C) Debit Cash, credit Accounts Receivable.
D) Debit Cash, credit Services Revenue.
E) Debit Accounts Payable, credit Services Revenue.

F) B) and D)
G) A) and D)

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

If cash was incorrectly debited for $100 instead of correctly crediting it for $100, the cash account's balance will be overstated (too high).

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

The accounting process to get from transactions and events to financial statements begins with:

A debit is used to record which of the following?

The following trial balance is prepared from the general ledger of HG's Auto Maintenance, Inc. Because the trial balance did not balance, you decided to examine the accounting records. You found that the following errors had been made: 1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable. 2. An investment of $500 cash by the owner was debited to Common Stock and credited to Cash. 3. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted from the computation. 4. One debit of $300 to the Dividends account was posted as a credit. 5. Office equipment purchased for $800 was posted to the Shop Equipment account. 6. One entire entry was not posted to the general ledger. The transaction involved the receipt of $125 cash for repair services performed for cash. Prepare a corrected trial balance for the HG's Auto Maintenance, Inc. as of October 31.

If a company provides services to a customer on credit, the company providing the service should credit Accounts Receivable.

The following transactions occurred during July: 1. Received $900 cash for services provided to a customer during July. 2) Received $2,200 cash investment from Bob Johnson, the stockholder of the business. 3) Received $750 from a customer in partial payment of his account receivable which arose from sales in June. 4) Provided services to a customer on credit, $375. 5) Borrowed $6,000 from the bank by signing a promissory note. 6) Received $1,250 cash from a customer for services to be provided next year. What was the amount of revenue for July?

Which of the following is not a step in the accounting process?

Crediting an expense account decreases it.

Identify the correct formula below used to calculate the debt ratio.

Revenues and expenses are two categories of ____________________ accounts.

A business uses a credit to record:

Identify the statement below that is incorrect.

A debit:

_____________________________ requires that each transaction affect, and be recorded in, at least two accounts. It also means that total amounts debited must equal total amounts credited for each transaction.

The four categories of equity accounts are ________________, __________________, ______________________, and ______________________.

Jarrod Automotive, Inc. owned and operated by Jarrod Johnson, began business in September of the current year. Jarrod, a mechanic, had no experience with recording business transactions. As a result, Jarrod entered all of September's transactions directly into the ledger accounts. When he tried to locate a particular entry he found it confusing and time consuming. He has hired you to improve his accounting procedures. The accounts in his General Ledger follow: Prepare the general journal entries, in chronological order (a) through (e), from the T-account entries shown. Include a brief description of the probable nature of each transaction.

Unearned revenue is classified as a(an) _______________ on a business's balance sheet.

Identify the item below that would cause the trial balance to not balance.

Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the current year: If Jerry invested an additional $12,000 in the business and withdrew $5,000 during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?