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Exam 3: Processing Accounting Information

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Question 21

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The totaling of each side of a T account is known as ____________________.

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Question 22

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The purchase of office equipment on credit has what effect on the accounting equation?

A) Assets increase and liabilities increase
B) Liabilities increase and stockholders' equity decreases.
C) Assets decrease and stockholders' equity decreases
D) Assets decrease and liabilities decrease.

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Question 23

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Several events are listed below.Indicate whether each event is an external event that should be recorded as a transaction, an internal event which should be recorded as a transaction, or an event which should not be recorded.Use the following identification codes for your answers: E - External event to be recorded as a transaction I - Internal event to be recorded as a transaction NR - An event which should NOT be recorded ___    A) An order is placed with a supplier for merchandise. ___    B) Common stock is issued to investors. ___    C) Cash sales are made. ___    D) Raw materials are entered into production. ___    E) Federal income tax returns are prepared by the comp any's accountant. ___    F) Bills are received for utility expenses. ___    G) Payment is received from customers to whom merchandise had been sold on credit. ___    H) Money collected from cash and credit customers is deposited in the company's checking account at a local bank.

Use the selected accounts for Copper Corp.presented below to answer the following question(s) . $\begin{array}{lr|} & {\text { CASH }} \\\hline 8 / 1 \text { Balance } & 6,000 \\8 / 3 & 500 \\8 / 5 & 400 \\8 / 7 & 900\end{array}$$\begin{array}{l}\text { ACCOUNTS RECEIVABLE }\\\begin{array}{ll|ll}\hline 8 / 2 & 1,800 & 8 / 7 & 900\end{array}\end{array}$ $\text { DEPOSITS RECEIVED IN ADVANCE }$ $\begin{array}{l}\text { (A Liability Account) }\\\begin{array}{r|rr}\hline &8/3&500 \\\end{array}\end{array}$$\begin{array}{l}\text { SALES }\\\begin{array}{r|rr}\hline 8 / 2 & 1,800 \\8 / 5 & 400\end{array}\end{array}$ ​ -Read the information on Copper Corp. On which date did the company make cash sales for daily golf and swimming fees?

Which of the following statements is true?

When the amount for a debit entry in a journal is transferred to a specific account in the general ledger, it must be recorded

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Interest Revenue

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company transfers work in process to finished goods inventory.

If an accounting firm provides services on account, both ____________________ and stockholders' equity increase.

A truck is purchased on credit.For this transaction, identify the effect on the accounting equation.

Which pair of accounts has the same set of rules for debit and credit entries?

Every accounting transaction affects both the balance sheet and the income statement.

A(n) ________________________________ is a numerical list of all of the accounts used by an entity.

The equality of debits and credits in a trial balance means that all entries were correctly posted to the accounts.

The acquisition of a computer for $1,200, with a down payment of $200 cash and the signing of a $1,000 note payable for the balance increases both assets and ____________________.

Which of the following statements is true?

Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account.An account title may be used more than once or not at all. -Corporate income taxes owed to the state government

All of the following accounts have normal credit balances except

Which of the following transactions affects the liabilities for Gravette, Inc.?

The credit side of an account is the right side while the debit side is the left side.