FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Analyzing and Recording Transactions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

True/False

Review LaterAdd Note

Review Later

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

A) True
B) False

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

A business's source documents may include all of the following except:

A) Sales tickets.
B) Bank statements.
C) Ledgers.
D) Purchase orders.
E) Checks.

F) B) and D)
G) B) and C)

Correct Answer

verified

Show Answer

Question 83

True/False

Review LaterAdd Note

A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.

Explain debits and credits and their role in the accounting system of a business.

Mary Martin, the owner of Martin Consulting, started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting will make to record the transaction. $\begin{array}{l}\text { A) }\\\begin{array} { | l | r | r | } \hline \text { Investments } & 40,000 & \\\hline \text { M. Martin, Capital } & & 40,000 \\\hline\end{array}\end{array}$ B) $\begin{array}{|l|r|r|}\hline \text { Cash } & 40,000 & \\\hline \text { M. Martin, Capital } & & 40,000 \\\hline\end{array}$ C) $\begin{array}{|l|r|r|}\hline \text { M. Martin, Capital } & 40,000 & \\\hline \text { Cash } & & 40,000 \\\hline\end{array}$ D) $\begin{array}{|l|r|r|}\hline \text { Investments } & 40,000 & \\\hline \text { Cash } & & 40,000 \\\hline\end{array}$ E) $\begin{array}{|l|r|r|}\hline \text { Cash } & 40,000 & \\\hline \text { Increased Equity } & & 40,000 \\\hline\end{array}$

Owner's withdrawals are not reported on a business's income statement.

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

Identify the statement below that is incorrect.

If cash is received from customers in payment for products or services that have not yet been delivered to the customers, the business would record the cash receipt as:

If an owner's capital account had a $10,000 credit balance at the beginning of the period, and during the period, the owner invests an additional $5,000, the balance in the capital account listed on the trial balance will be equal to a debit balance of $5,000.

At a given point in time, a business's trial balance is a list of all of its general ledger accounts and their balances.

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction. A) $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 250 & \\\hline \text { Rental Revenue } & & 100 \\\hline \text { Instruction Revenue } & & 150 \\\hline\end{array}$ B) $\begin{array}{|l|r|r|}\hline \text { Unearned Revenue } & 250 & \\\hline \text { Rental Revenue } & & 100 \\\hline \text { Instruction Revenue } & & 150 \\\hline\end{array}$ C) $\begin{array}{|l|r|r|}\hline \text { Rental Revenue } & 100 & \\\hline \text { Instruction Revenue } & 150 & \\\hline \text { Cash } & & 250 \\\hline\end{array}$ D) $\begin{array}{|l|r|r|}\hline \text { Accounts Payable } & 250 & \\\hline \text { Rental Revenue } & & 100 \\\hline \text { Instruction Revenue } & & 150 \\\hline\end{array}$ E) $\begin{array}{|l|r|r|}\hline \text { Cash } & 250 & \\\hline \text { Rental Revenue } & & 100 \\\hline \text { Instruction Revenue } & & 150 \\\hline\end{array}$

An income statement is also called an earnings statement, a statement of operations or a profit and loss statement.

Identify the account below that impacts the Equity of a business:

Describe what source documents are and the purpose they serve in a business.

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:

Provided below is a list of definitions and terms. Match the term with correct definition.

Preparation of a trial balance is the first step in processing a financial transaction.

Identify the statement below that is correct.

The debt ratio is used: