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Multiple Choice Which of the following is not part of measuring external transactions Using source documents to analyze accounts affected

 

Multiple Choice

 

 

 

45. Which of the following is not part of measuring external transactions?

a. Using source documents to analyze accounts affected.

b. Recording transactions.

c. Making payments on all amounts owed.

d. Analyzing transactions for their effect on the accounting equation.

 

 

46. External events include all of the following except:

a. Paying employees’ salaries.

b. Purchasing equipment.

c. Using office supplies.

d. Collecting an account receivable.

 

 

47. The full set of procedures used to accomplish the FN Measurement/communication process of financial accounting is referred to as the:

a. Trial balance

b. Accounting cycle

c. Chart of accounts

d. General ledger

 

 

48. Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?

a. Use source documents to determine accounts affected by the transaction.

b. Prepare a trial balance.

c. Analyze the impact of the transaction on the accounting equation.

d. Post the transaction to the T-account in the general ledger.

 

 

49. For each transaction recorded in an accounting system, the basic equation that must be maintained at all times is:

a. Assets = Liabilities + Stockholders’ Equity.

b. Cash Increases = Cash Decreases.

c. Revenues = Expenses + Dividends.

d. Assets = Liabilities.

 

 

50. The following amounts are reported in the ledger of Mariah Company:

 

Assets

$80,000

Liabilities

36,000

Retained Earnings

12,000

 

What is the balance in the Common Stock account?

a. $44,000.

b. $32,000.

c. $48,000.

d. $42,000.

 

 

51. When a company incurs employee salaries but does not pay them, how will the basic accounting equation be affected?

a. Stockholders’ equity decreases.

b. Revenues decrease.

c. Expenses decrease.

d. Liabilities decrease.

 

 

52. When cash payments are made to stockholders, what is the effect on the company’s accounts?

a. Cash decreases and dividends increase.

b. Cash increases and dividends decrease.

c. Cash decreases and common stock decreases.

d. Cash increases and common stock increases.

 

 

53. Which of the following is not an asset account?

a. Supplies.

b. Accounts Payable.

c. Equipment.

d. Accounts Receivable.

 

 

54. An account receivable can best be defined as:

a. A payment to the owners.

b. A sale of goods and services.

c. A resource owned by the company.

d. An amount owed by the company.

Jan 27 2020 View more View Less

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