财务会计题库Transaction

1、The purchase of office equipment for cash would increase both an asset and aFinancial Accounting, 7eHarrison/HorngrenTest Item FileChapter 2: Transaction AnalysisA journal entry is an event that has a financial impact on thi business that can be reliably measuredAnswer: FalseLO: 21D辻f: 2EOC: S25The

2、trial balance is a NOT a formal accounting statementAnswer: TrueLO: 21D辻f: 1EOC: S225Accrued Liabilities is a liability accountAnswer: TrueLO: 21D辻f: 1EOC: E228The r己tained earnings account represents th excess of net income over dividends retained in the businesssince its inception.Answer: TrueLO:

3、21D辻f: 1EOC: P250AExpense accounts always represent expired assetsAnswer: FalseLO: 21D辻f: 2EOC: E2llThe dividends account indicates an increase in common stock.Answer: FalseLO: 2-1Diff: 2EOC: E2-15Doubleentry accounting records only those transactions affecting the incomestatementAnswer: FalseLO: 2-

4、1Diff: 2EOC: QC 8liability accountAnswer: FalseLO: 2一1D辻f: 2EOC: P2一49AWhich of the following is NOT an asset account?A.Accounts ReceivableBPrepaid RentCCommon StockDAll of theseareasset accountsAnswer: CLO: 2一1D辻f: 2EOC: P2一49APrepaid expense accounts appear on：A.the income statementBthe balance sh

5、eetC the statement of retained earnings and on the income statementD both the income statement and balance sheetAnswer: BLO: 2-1Diff: 2EOC: P2-56AThe term double-entry accounting indicates that the accountant：A. records both sides of each transaetion in the accounts affected.Bcomputes the income sta

6、tement and balance sheet effect of each transaetion.C.identifies both the cash inflows and the cash outflows.D.uses both the general journal and the general ledger when recordingtransactions.Answer: ALO: 2-1Diff: 2EOC:QC 8A company received cash in exchange for issuingstock Thistransaction increased

7、assets and：a.increasedexpenses.b.increasedrevenues.c.increasedliabi lit i 己 s.d.increasedequity.Answer: DLO: 2-1Diff:EOC:E2-16company purchased office supplies for cash.Thistransaction increased assets and:A.increasedequity.B.increasedliabi lit i 己 s.C.increasedrevenues.D.decreasedassets.Answer: DLO

8、: 2-1Diff:EOC: QC 10A company performed services for a customer on account This transaction increasedassetsand：A. decreased equity.B increased liabilities.C increased expenses.D increased revenues.Answer: DLO: 2-1Diff: 1EOC: QC 3A company paid cash for employee wages Thistransaction：A.increasedcasha

9、ndincreasedexpenses.B.increasedcashanddecreasedexpenses.C.decreasedcashandincreasedexpenses.D.decreasedcashanddecreasedrevenues.Answer: CLO: 2-1Diff:EOC:S2-5and：A. decreased revenues.B decreased liabilities.C decreased expenses.D increased expenses.A company paid cash for an amount owed to a credito

10、r. This transaction decreased cashAnswer: BLO: 2-1Diff: 1EOC: E2-16purchase anThe owner of a business paid cash from his personal checking account automobile for his personal use This transaetion：A. increased a liability account and increased liabilitiesB decreased cash and increased expensesC incre

11、ased assets and increased owners equity.D is not a transaetion recognized by the businessAnswer: DLO: 21D辻f: 2EOC: E215Which type of account is increased when a company records a debt?A. ExpenseB Retained earningsC LiabilityD None of the above are correctAnswer: CLO: 2-1Diff: 2EOC: QC 1All of the fo

12、llowing accounts would be considered assets EXCEPT for：A. cash.B retained earnings.C prepaid expenses.D nots receivable.Answer: BLO: 21D辻f: 1EOC: S29What type of account is prepaid insurance?A. A liabilityB An expenseC Stockholders， equityD An assetAnswer: DLO: 2一1D辻f: 2EOC: P2一49AWhich of the follo

13、wing accounts are a standard component of stockholders equity?A. Prepaid ExpensesB DividendsC Additional Paid In StockD Unearned IncomeAnswer: BLO: 21Diff: 2EOC: P2-50AofNots payable, accounts payable, taxes payable and salaries payable are all examplesA. liabil ities.B revenues.C expenses.D assets.

14、Answer: ALO: 2-1Diff: 1EOC: S2-9Which type of account is decreased when a company pays its employees with cash?A. A liabilityB A prepaid assetC An assetD Owners equityAnswer: CLO: 2-1Diff: 2EOC: S2-5Which of thefollowing business eventswould NOT be recordedin a companyaccounting records?A.The compan

15、ypaid a monthly utility billof SI, 000.B.The companyissued 100 shares of commonstock for S75, 000.C.Thecompany purchased two acres of landfor future plant expansion for $600,000.D The company signed a contract to provide services in thw next accounting periodfor $125, 000.Answer: DLO: 2-1Diff: 2EOC:

16、 P2-52AWhich of the following transactions would increase total assets?I. Borrowed cash on a note payable, $80,000II. Provided services on account, S10,000III. Received cash from a customer as payment on account, $8,000IV. Received a utility bill, SI, 200A. I and IIB. I and IIIC. I, II, and IIID All

17、 of these answers are correctAnswer: ALO: 21D辻f: 3EOC: E216Consider the following transactions：I. Borrowed cash on a note payable, $80,000II. Provided services on account, S10,000III. Received cash from a customer as payment on account, $8, 000IV. Received a utilitySI, 200Total assets would be：A. $9

18、6,800.B. $8& 000.C. $90, 000.D. $9& 000.Answer: CLO: 2-1Diff: 3EOC: E2-16The pannent of an amount owed to a creditor would：A. decrease assets.B increase net income.C decrease liabilities.D both decrease assets and decrease liabilities.Answer: DLO: 2-1Diff: 2EOC: E2-15The payment of salaries to emplo

19、yees would:A.increaseassets and increase liabilities.B.decreasenet income and decrease assets.C.increaseliabilities and increase net income.D.decreaseassets and decrease liabilities.Answer: BLO: 2-1Diff: 2EOC:S2-5When a company performs a service and immediately collects the cash from thi customer,

20、which of the following would occur?A. Stockholders， equity would decrease.B.Assets would decreaseC.Expenses would decreaseD.Net income would increaseAnswer: DLO: 21D辻f: 2EOC: QC 3Purchasing supplies on account would:A.increase totai assets and decrease total liabiliti己sB.increase totai liabilities a

21、nd decrease total assets.C.increase totai assets and increase total liabilities.D.increase totai liabilities and increase stockholders， equity.Answer: CLO: 21D辻f: 2EOC: E214Paying a utility bill as soon as it was received would：A.increase expensesB.increase liabilities.C.increase owners equity.D.dec

22、rease revenuesAnswer: ALO: 2-1Diff: 2EOC: E2-16Borrowing money from the bank by signing a note payable would:A. increase stockholders， equity.B have no effect on stockholders equity.C decrease liabilities.D increase net income.Answer: BLO: 2-1Diff: 2EOC: E2-15Receiving apayment from acustomeron acco

23、unt would：A.increasestockholders，equity.B.have no effect on totaiasse ts.C.increasestockholders，equity.D.decreaseliabilities.Answer: BLO: 2-1D辻f: 2EOC: E2-15The purchase of land for cash would：A. increase totai assets.B decrease stockholders， equity.C increase the total debits on the trial balance.D

24、 have no effect on totai assets.Answer: DLO: 2-1Diff: 3EOC: E2-15If a person starting a business had an investm己nt of a building, valued at $300, 000 with an $180,000 outstanding mortgage, th己 effect would be to:A.increaseassets by S120,000.B.increaseassets by S180,000.C.increasestockholders? equity

25、 by $120, 000.D.increasestockholders? equity by $300,000.Answer: CL0: 2-1Diff: 3EOC: E2-14Performing services on account would:A.decrease both assets and liabilities.B increase assets and decrease stockholders， equity.C decrease revenue and decrease stockholdersf equity.D increase net income and sto

26、ckholders， equity.Answer: DL0: 2-1Diff: 3EOC: E2-16The collection of cash from a cash sale would:A. increase assets and stockholders， equity.B increase assets and decrease liabilities.C decrease assets and increase net income.D have no effect on net income or stockholders1 equity.Answer: ALO: 2-1Dif

27、f: 3EOC: E2-16Cash dividends paid to the stockholders will:A. increase assets and decrease liabilities.B increase assets and increase liabilities.C have no effect on stockholdersequity or revenueD decrease assets and decrease stockholders? equity.Answer: DLO: 21D辻f: 3EOC: E215$8, 000EOC: S2-2Conside

28、r the following transactions：I. Borrowed cash on a note payable, $80,000II. Provided services on account, S10,000III. Received cash from a customer as payment on account,IV. Received a utilitySI, 200Total liabilities would be:A. $1, 200.B. $81,200.C. $9& 000.D. $80,000.Answer: BLO: 21D辻f: 3Consider

29、the following transactions：I. Owners invested $8,000 cash to begin the businessII. Provided services for cash, $6,000III. Provided services on account, S4,000IV. Paid cash for expenses, $7,500How much cash does the business have?A. $2,500B. $4,500C. $6,500D. $10, 500Answer: CL0: 2-1Diff: 2EOC: S2-3C

30、onsider the following transactions：I. Owners invested $8,000 cash to begin the businessII. Provided services for cash, $6,000III. Provided services on account, S4,000IV. Paid cash for expenses, $7,500How much net income did the business have?A. $2, 500B. $3, 000C. $4, 000D. $6, 000Answer: ALO: 212EO

31、C: E216a liabilityAn account with a normal balance of a debit indicates that the account isaccoun tAnswer: FalseLO: 2-2Diff: 1EOC: S2-9An account withnormal credit balance is most often a liability or stockholders，equity account.Answer: TrueLO: 2-2Diff: 1EOC: QC 2Liabilities andrevenues are decrease

32、d by credits.Answer: FalseLO: 2-2Diff: 2EOC: P2-51AAssets, ownersequity and dividends are all increased by debits.Answer: FalseLO: 2-2Diff:EOC:E2-17Revenues and expenses are specialized ownersequity accounts,all having debitbalances.Answer: FalseLO:2-2Diff:EOC:E2-21Dividends andexpensesare specializ

33、ed ownersequity accountsthat are increased bydebits.Answer: TrueLO:2-2Diff:EOC:E2-17Every businesstransaction involves at leastone debit and one credit part of thetransaction.Answer: TrueLO: 2-2Diff:EOC: S2-5All business transactions involve an increase in st least one account and a decreasein at le

34、ast one otheraccoun tAnswer: FalseLO: 2-2Diff: 2EOC: S2-5.The left side of a Taccount is always the:A. increase side.B decrease side.C debit side.D cred it side.Answer: CLO: 2-2Diff: 1EOC: S2-7Which of the following statements regarding accounts is TRUE?A. An asset is increased by a debit and decrea

35、sed by a credit.B Dividends are decreased by debits and increased by creditsC A liability is increased by a debit and decreased by a creditD Revenue is increased by a debit; an expense is increased by a credit.Answer: ALO: 22D辻f: 3EOC: QC 1Which accounts are increased by debits?A. Assets and owners

36、equityB Expenses and owners equityC Assets, expenses and dividendsD Assets, expenses and owners* equityAnswer: CLO: 2-2Diff: 2EOC: E2-23An account is increased by a debit and has a normal balance of a debit. This accountis a(n)A. expense accountB liability accountC asset accountD both an expense acc

37、ount and an asset accountAnswer: DLO: 2-2D辻f: 3EOC: E2-25ThisA business purchases a truck by signing a note payable to the seller.transaction would include a：A. credit to TruckB debit to Note PayableC credit to Note PayableD debit to Prepaid MaintenanceAnswer: CLO: 2-2D辻f: 2EOC: P2一53AThe accounting

38、 transaction to record a loan would include a credit to：A. Cash.B Notes Payable.C Utilities Expense.D Accounts Receivable.Answer: BLO: 2-2Diff: 2EOC: P2-53AThe entry to record $1,000 received from a customer for services previously rendered would be:Cash1,000Accounts Receivable1,000Cash1,000Service

39、Revenue1,000Service Revenue1,000Accounts Receivable1,000Dividends1,000Cash1,000Answer: AL0:2一2D辻f: 2EOC:P2一53ADebits are always recorded (journalized) before creditsAnswer: TrueL0:2-3D辻f: 2EOC:S25A journal shows a chronological listing of th己 accounting activities of a businessbecause businesstransa

40、ctions occur in this mannerAnswer: TrueL0: 2-3D辻f: 1EOC: P251APosting accounting transactions avoids the necessity of journalizing transactions,and the use of T accountsAnswer: FalseL0: 2一3D辻f: 1EOC: QC 11The ledger provides a good indication of how much cash is available for the businessto us己 at a

41、ny one point in tim己.Answer: TrueLO: 2-3Diff: 2EOC: S2-12The accounting records are considered to be correct if th已 total debits of thi trialbalance equal the totaicredits on the Post Closing Trial Balance.Answer: FalseLO: 2-3Diff: 2EOC: E2-22A trial balanceis a list of all accounts and their balanc

42、es for a period of time.Answer: FalseLO: 2-4Diff: 1EOC: P2-49AA trial balanceis an optional financial statement that reports the financialposition of the company as of a given day in time.Answer: FalseLO: 2-4Diff: 2EOC: E2-21Accounting transactions are initially recorded in the：A. Taccoun tB ledgerC

43、 journa 1D pos ter.Answer: CLO: 2一3D辻f: 2EOC: QC 11A chronological record (or history) of an entity， s transactions is called a：A. Taccoun tB ledger.C journal.D pos ter.Answer: CLO: 2-3Diff: 1EOC: E2-18What is one of the first steps in the journalizing process?A. Enter the transaetion in the journal

44、.B Post the transaetion to the ledger.C Det ermine what accou nts will be affec ted and whe thEi? to debit or cred it t hem.D Identify the transaction from source documents and other information.Answer:DLO: 2-3Diff: 2EOC:E2-18Which Df thefollowing items wouldNOT be includedin thejournal entry fortra

45、nsaction?A.Thesourcedocuments initiating thetransactionB.Thedate the accounting transactionwas enteredC.Thetitlesof the accounts debitedD.Thedollaramount creditedAnswer:ALO: 2-3D 辻 f: 1EOC:S2-5The proper order for the accounting process is:A. posting, transaeting, closing and journalizingB transacti

46、ng, posting, journalizing and closingC transacting, journalizing, posting and closingD posting, closing, transacting and journalizingAnswer: CLO: 2一3D辻f: 2EOC: QC 11The process of transferring information from the journal to the ledger is known as:A. conver ting.B bookkeeping.C pos ting.D ledgerizin

47、g.Answer: CLO: 2-3Diff: 1EOC: P2-51Atransferring data from：EOC: P2-51At he:In accounting, the process of posting involvesA. the ledger to the journa1B the journal to the ledgerC the source documents to the ledgerD the source documents to the journa1.Answer: BLO: 23D辻f: 2Accounts are grouped together

48、 in a book calledA. accounting equationB trial balanceC journa 1D ledger.D increase in liabilitis assets.Answer: ALO: 2-3Diff: 2EOC: E2-19The entry to record the purchase of supplieson account would include a debit to：A. SuppliesB Accounts PayableC Supplies ExpenseD Retained EarningsAnswer: ALO: 2一3

49、Diff: 2EOC: E2-19The entry to record the payment of salaries to employees would include a:A. credit to Salary Expense.B debit to Accounts Payable.C debit to Salary Expense.D debit to Accounts Receivable.Answer: CLO: 2一3D辻f: 2EOC: S2-5The journal entry to record performing a service on account would

50、include a debit to:A. Cash B Service Revenue ExpenseC Accounts ReceivableD Retained Earnings.Answer: CLO: 2-3Diff: 2EOC: S2-5The payment for rent of the office building for one month would include a:A. debit to Cash.B debit to Prepaid Rent.C debit to Rent Expense.D credit to Revenue.Answer: CLO: 2-3

51、Diff: 2EOC: E2-18The purchase of office furniture for cash would include a debit to：A. Accounts PayableB Office Furniture.C Office Furniture ExpenseD CashAnswer: BLO: 2-3Diff: 2EOC: E2-18An ownermakes aninves tment of cash into the business This transaction wouldA.B.include a： debit to Common Stock

52、and a credit to Common Stock.debit to Cash and a cred it to Common Stock.C debit to Retained Earnings and a cred it to Cash.D debit to Common Stock and a credit to Retained Earnings.Answer: BLO: 2-3Diff: 2EOC: E2-18A stockholder s invesofland and a building into the business would include adebit to：A. L