Question 1

Copper Company began operations in April and then engaged in the following transactions during April  If the balance in cash after these transactions is $165,000,how much cash was paid on account?
A)$43,000
B)$57,000
C)$1,000
D)$21,000

Accepted Answer

The answer of Copper Company began operations in April and...

Question 2

The account most recently posted is determined most efficiently by referring to the
A)Post.Ref.column of the ledger.
B)balance column of the ledger.
C)date column of the general journal.
D)Post.Ref.column of the general journal.

Accepted Answer

The Post.Ref. column of the general journal indicates which account(s) have been posted in the ledger and in which page(s) of the ledger they can be found. Therefore, referring to the Post.Ref. column of the general journal is the most efficient way to determine the account(s) that have been most recently posted.

Question 3

Posting is performed by transferring information from the
A)source documents to the journal.
B)source documents to the ledger.
C)journal to the ledger.
D)ledger to the journal.

Accepted Answer

Posting is the process of transferring information from the journal to the ledger. The journal is a chronological record of all transactions, while the ledger is a collection of all accounts used by a business. Each transaction recorded in the journal must be posted to the appropriate account in the ledger in order to keep an accurate record of the business's financial activity. Therefore, option C is the correct answer.

Question 4

Which of the following is not an example of egregious financial reporting frauds as discussed in the text?
A)Keeping the books open for a few days after the end of the reporting period.
B)Transferring assets to an affiliate at more than their actual value.
C)Recording as assets expenditures that should have been classfied as expenses.
D)Recording a liability when title to merchandise passes to the purchaser.

Accepted Answer

Recording a liability when title to merchandise passes to the purchaser is a standard accounting practice, not an example of financial reporting fraud. The other options (A, B, C) involve manipulations that could misrepresent the financial condition of a company, which can be considered fraudulent.

Question 5

Copper Company engaged in the following transactions during April  If the balance in cash after these transactions is $115,000,how much cash was collected on account?
A)$67,000
B)$62,000
C)$15,000
D)$29,000

Accepted Answer

The answer of Copper Company engaged in the following transactions...

Question 6

Use this journal entry to answer the following question.

Accepted Answer

The answer of Use this journal entry to answer the...

Question 7

Which of the following is an example of egregious financial reporting fraud as discussed in the text?
A)Closing the books at the end of the reporting period.
B)Transferring assets to an affiliate at more than their actual value.
C)Recording as expenses expenditures that should have been classfied as expenses.
D)Recording a liability when title to merchandise passes to the purchaser.

Accepted Answer

Transferring assets to an affiliate at more than their actual value is an example of egregious financial reporting fraud. This is because it involves intentionally misrepresenting the value of assets in order to deceive stakeholders and potentially inflate financial results. Closing the books, correctly classifying expenses, and recording liabilities accurately are all part of proper financial reporting practices and do not constitute fraud.

Question 8

A purchase is recognized in the accounting records when
A)payment is made for the item purchased.
B)the purchase requisition is sent to the purchasing department.
C)title transfers from the seller to the buyer.
D)the buyer receives the seller's bill.

Accepted Answer

Recognition of a purchase in accounting records depends on the transfer of title from the seller to the buyer. This is because ownership of the goods is transferred to the buyer once the title changes hands. Payment and receipt of the seller's bill may happen before or after the transfer of title, so they are not necessarily indicative of the recognition of the purchase. The purchase requisition being sent to the purchasing department is also not indicative of recognition, as it only initiates the purchasing process.

Question 9

Which of the following business events is not a transaction
A)Signing a contract.
B)Paying wages.
C)Receiving goods.
D)Purchasing a service.

Accepted Answer

Signing a contract is not a transaction as it does not involve the exchange of goods or services. It is a formal agreement that may be a prelude to a transaction, but in itself, it is not a transaction. The other options involve the exchange of goods, services, or money, which are the essential elements of a transaction.

Question 10

Which of the following guidelines is correct?
A)Dollar signs ($)are required in all financial statements and other schedules.
B)Account names are capitalized when referenced in text or listed in work documents like the journal or ledger.
C)In financial statements only the first word of an account name is capitalized.
D)All of these choices.

Accepted Answer

The answer of Which of the following guidelines is correct?
A)Dollar...

Question 11

Which of the following is a business event that is not considered a recordable transaction?
A)A company receives a product previously ordered.
B)A company pays an employee for work performed.
C)A customer inquires about the availability of a service.
D)A customer purchases a service.

Accepted Answer

An inquiry about the availability of a service is not a recordable transaction as it does not involve any exchange of goods or services. The other options involve either receiving products or paying employees, both of which are recordable transactions.

Question 12

Which of the following is a business event that is considered a recordable transaction?
A)A company hires a new employee.
B)A customer purchases merchandise.
C)A company orders a product from a supplier.
D)An employee sends a purchase requisition to the purchasing department.

Accepted Answer

A transaction is an exchange of goods, services, or money between two parties. In this case, a customer purchasing merchandise creates a recordable transaction because it involves the exchange of goods and money. Hiring a new employee, ordering a product, and sending a purchase requisition do not necessarily involve a transaction and may not be recordable transactions.

Question 13

Mesquite,Inc.is ordering a new machine to be used in its manufacturing facility.Which of the following events would trigger the recognition of the machine and related liability on Mesquite's books?
A)The company generates a purchase order.
B)A technician installs the machine on the floor of the manufacturing facility.
C)The company receives the machine.
D)The company pays the bill from the supplier.

Accepted Answer

The recognition of the machine and related liability will occur when the company receives the machine, as this is the point at which the company has control over the asset and the liability for any related costs. The purchase order, installation, and payment of the bill are important steps in the process but do not trigger recognition until the company has possession of the asset.

Question 14

Mesquite,Inc.engaged in the following transactions during October:  What is the amount of cash still to be received?
A)$2,300
B)$1,500
C)$1,900
D)$400

Accepted Answer

The answer of Mesquite,Inc.engaged in the following transactions during October:...

Question 15

Mesquite,Inc.engaged in the following transactions during October:  What is the balance in cash after these transactions?
A)$940
B)$1,140
C)$740
D)$2,440

Accepted Answer

-Starting cash balance is $500.
-Received $400 from customers, so cash increases to $900.
-Paid $250 for rent and $210 for supplies, so cash decreases by $460 ($250 + $210) to $440.
-Sold merchandise for $600, so cash increases to $1,040.
-Paid $100 for gas and $200 for repairs, so cash decreases by $300 ($100 + $200) to $740.
-Received $400 from bank loan, so cash increases to $1,140.
Therefore, the ending balance in cash is $1,140.

Question 16

Slim Co.is ordering a new computer for its corporate office.Which of the following events would trigger the recognition of the computer and related liability on Slim's books?
A)The company generates a purchase order.
B)The purchasing department sends a purchase order to the supplier.
C)The company receives the computer.
D)The company receives the bill from the supplier.

Accepted Answer

Recognition of an asset and related liability occurs when the company gains control of the asset, which typically happens upon receipt of the goods, in this case, the computer.

Question 17

Mesquite,Inc.engaged in the following transactions during October:  What is the amount of cash still to be paid?
A)$2,300
B)$2,100
C)$1,300
D)$400

Accepted Answer

The answer of Mesquite,Inc.engaged in the following transactions during October:...

Question 18

Copper Company began operations in April and then engaged in the following transactions during April  What is the balance in cash after these transactions?
A)$302,000
B)$190,000
C)$144,000
D)$87,000

Accepted Answer

Starting cash balance = $100,000
Cash received from customers = $200,000
Total cash = $300,000
Cash paid for rent = $5,000
Cash paid for supplies = $100,000
Cash paid for salaries = $5,000
Total cash paid = $110,000
Ending cash balance = $300,000 - $110,000 = $190,000

Question 19

Copper Company engaged in the following transactions during April  What is the amount of cash still to be paid?
A)$18,000
B)$47,000
C)$94,000
D)$52,000

Accepted Answer

The answer of Copper Company engaged in the following transactions...

Question 20

Copper Company engaged in the following transactions during April  What is the amount of cash still to be collected?
A)$126,000
B)$341,000
C)$144,000
D)$18,000

Accepted Answer

The answer of Copper Company engaged in the following transactions...

Quiz 2: Analyzing and Recording Business Transactions

Copper Company began operations in April and then engaged in the following transactions during April If the balance in cash after these transactions is $165,000,how much cash was paid on account?

The account most recently posted is determined most efficiently by referring to the

Posting is performed by transferring information from the

Which of the following is not an example of egregious financial reporting frauds as discussed in the text?

Copper Company engaged in the following transactions during April If the balance in cash after these transactions is $115,000,how much cash was collected on account?

Use this journal entry to answer the following question.

Which of the following is an example of egregious financial reporting fraud as discussed in the text?

A purchase is recognized in the accounting records when

Which of the following business events is not a transaction

Which of the following guidelines is correct?

Which of the following is a business event that is not considered a recordable transaction?

Which of the following is a business event that is considered a recordable transaction?

Mesquite,Inc.is ordering a new machine to be used in its manufacturing facility.Which of the following events would trigger the recognition of the machine and related liability on Mesquite's books?

Mesquite,Inc.engaged in the following transactions during October: What is the amount of cash still to be received?

Mesquite,Inc.engaged in the following transactions during October: What is the balance in cash after these transactions?

Slim Co.is ordering a new computer for its corporate office.Which of the following events would trigger the recognition of the computer and related liability on Slim's books?

Mesquite,Inc.engaged in the following transactions during October: What is the amount of cash still to be paid?

Copper Company began operations in April and then engaged in the following transactions during April What is the balance in cash after these transactions?

Copper Company engaged in the following transactions during April What is the amount of cash still to be paid?

Copper Company engaged in the following transactions during April What is the amount of cash still to be collected?