8/17/2019 Answers accounting

1/5

Double Entry Accounting

  Begin 

 

Previous  

  Next 

Double Entry Accounting

Practice Excercise Results

1. Your company buys a new forklift for $500 cash. The entry for this transaction should be:

A debit of $500 to cash and a credit of $500 to sales

A debit of $500 to cash and a $500 credit to equipment

A credit of $500 to cash and a debit of $500 to equipment

 None of the above

2. You borrow $750,000 on a 90-day note. The money is deposited into checking. The entry for th

 A debit of $750,000 to cash and a credit of $750,000 to notes payable

A credit of $750,000 to cash and a debit of $750,000 to notes payable

A debit of $750,000 to cash and a debit of $750,000 to interest expense

 None of the above

3. A customer buys a product from you for $350 and promises to pay you in 30 days. The customeThe entry for this transaction is:

A credit of $350 to sales and a debit of $350 to cash

A credit of $350 to sales and a debit of $350 to accounts payable

A debit of $350 to sales and a credit of $350 to accounts receivable

None of the above

http://www.studyfinance.com/lessons/finstmt/http://www.studyfinance.com/lessons/finstmt/http://www.studyfinance.com/lessons/finstmt/?page=07http://www.studyfinance.com/lessons/finstmt/?page=07http://www.studyfinance.com/lessons/finstmt/?page=09http://www.studyfinance.com/lessons/finstmt/?page=09http://www.studyfinance.com/lessons/finstmt/?page=09http://www.studyfinance.com/lessons/finstmt/?page=07http://www.studyfinance.com/lessons/finstmt/

8/17/2019 Answers accounting

2/5

4. Your company buys some materials to use in producing a product that it sells. The cost of the mvendor in 30 days. The entry for this transaction is:

A debit of $350 to materials expense and a credit of $350 to accounts payable

A credit of $350 to materials expense and a debit of $350 to accounts payable

A debit of $350 to materials expense and a credit of $350 to accounts receivable

A credit of $350 to materials expense and a debit of $350 to accounts receivable

 None of the above

  Return 

  Next 

The Accounting Equation

  Begin 

 

Previous  

  Next 

Assets = Liabilities + Owners' Equity

Practice Excercise Results

1. A share of stock in General Motors that your company owns would be:

A liability

Owners' equity

An asset

 None of the above

http://www.studyfinance.com/lessons/finstmt/?page=08http://www.studyfinance.com/lessons/finstmt/?page=08http://www.studyfinance.com/lessons/finstmt/?page=09http://www.studyfinance.com/lessons/finstmt/?page=09http://www.studyfinance.com/lessons/finstmt/http://www.studyfinance.com/lessons/finstmt/http://www.studyfinance.com/lessons/finstmt/?page=02http://www.studyfinance.com/lessons/finstmt/?page=02http://www.studyfinance.com/lessons/finstmt/?page=04http://www.studyfinance.com/lessons/finstmt/?page=04http://www.studyfinance.com/lessons/finstmt/?page=04http://www.studyfinance.com/lessons/finstmt/?page=02http://www.studyfinance.com/lessons/finstmt/http://www.studyfinance.com/lessons/finstmt/?page=09http://www.studyfinance.com/lessons/finstmt/?page=08

8/17/2019 Answers accounting

3/5

8/17/2019 Answers accounting

4/5

 

  Previous  

  Next 

Overview of the Balance Sheet

Practice Excercise Results

1. Accounts receivable would be considered:

A liability

A fixed asset

A current asset

 None of the above

2. Common equity includes:

Common stock

Capital surplus

Retained earnings

All of the above

 None of the above

3. Preferred stock would be considered:

A current liability

A long-term liability

Owners' equity

 None of the above

http://www.studyfinance.com/lessons/finstmt/?page=14http://www.studyfinance.com/lessons/finstmt/?page=14http://www.studyfinance.com/lessons/finstmt/?page=16http://www.studyfinance.com/lessons/finstmt/?page=16http://www.studyfinance.com/lessons/finstmt/?page=16http://www.studyfinance.com/lessons/finstmt/?page=14

8/17/2019 Answers accounting

5/5

4. Intangible assets would include:

Goodwill

Patents

Trademarks

Organizational costs

All of the above

 None of the above

5. Long-term liabilities are those that:

Are due in 1 year or more

Are due in 5 years or more

Are due in 10 years or more

 None of the above

  Return 

  Next 

http://www.studyfinance.com/lessons/finstmt/?page=15http://www.studyfinance.com/lessons/finstmt/?page=15http://www.studyfinance.com/lessons/finstmt/?page=16http://www.studyfinance.com/lessons/finstmt/?page=16http://www.studyfinance.com/lessons/finstmt/?page=16http://www.studyfinance.com/lessons/finstmt/?page=15