Century 21 Accounting, General Journal, 10e Claudia Bienias Gilbertson,
Lehman, Debra Harmon-Gentene (Test Bank All Chapters, 100% Origin
Verified, A+ Grade)
Perfect You
Name Score Scor
Chapter 1 Defining Accounting Terms 27
Analyzing Accounting Practices 15
Pts.
Pts.
TEST A Determining How Transactions Change an Accounting Equation 48
Determining How Transactions Change an Accounting Equation 40
Pts.
Pts.
Total 130 Pts.
Part One—Defining Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Column I Column II Answer
A. account 1. A
formal report that shows what an individual owns, 1. S
what an individual owes, and the difference between
the two.
B. account balance 2. Planning,
recording, analyzing, and interpreting financial 2. D
information.
C. account title 3. An
equation showing the relationship among assets, 3. E
liabilities, and owner’s equity.
D. accounting 4. A business activity that changes assets, liabilities, or 4. Z
owner’s equity.
E. accounting equation 5. A planned process for providing financial information 5. F
that will be useful to management.
F. accounting system he standards and rules that accountants follow while
6. T 6. Q
recording and reporting financial activities.
G. asset account used to summarize the owner’s equity in
7. The 7. J
the business.
H. business ethics he amount remaining after the value of all liabilities is
8. T 8. T
subtracted from the value of all assets.
I. business plan record summarizing all the information pertaining to a
9. A 9. A
single item in the accounting equation.
J. capital account he difference between personal assets and personal
10. T 10. U
liabilities.
K. creditor 11. Anything of value that is owned. 11. G
L. equities 12. A sale for which cash will be received at a later date. 12. X
M. equity 13. Assets
taken out of a business for the owner’s personal 13. AA
use.
N. ethics formal written document that describes the nature of a
14. A 14. I
business and how it will operate.
O. expense 15. A business owned by one person. 15. V
P. financial statements 16. The use of ethics in making business decisions. 16. H
Q. GAAP 17. A business that performs an activity for a fee. 17. Y
R. liability 18. The difference between assets and liabilities. 18. M
S. net worth statement 19. Financial
reports that summarize the financial conditions 19. P
and operations of business.
T. owner’s equity 20. An amount owed by a business. 20. R
U. personal net worth 21. A person or business to whom a liability is owed. 21. K
Chapter 1—Test A •
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in p
, Column I Column II Answers
V. proprietorship 22. A
decrease in owner’s equity resulting from the 22. O
operation of a business.
W. revenue 23. An
increase in owner’s equity resulting from the 23. W
operation of a business.
X. sale on account 24. The amount in an account. 24. B
Y. service business 25. The name given to an account. 25. C
Z. transaction 26. Financial rights to the assets of a business. 26. L
AA. withdrawals 27. The
principles of right and wrong that guide an 27. N
individual in making decisions.
Part Two—Analyzing Accounting Practices
Directions: Place a T for True or an F for False in the Answers column to show whether
each of the following statements is true or false.
Answers
1. The accounting equation is most often stated as Assets + Liabilities = Owner’s Equity. 1. F
2. After each transaction, the accounting equation must remain in balance. 2. T
3. A negative amount for net worth would reflect more debt than assets, something a 3. F
creditor would favor.
4. When
two asset accounts are changed in a transaction, there must be an increase and a 4. T
decrease.
etailed information about changes in owner’s equity is needed by owners and
5. D 5. T
managers to make sound business decisions.
6. When
items are bought and paid for at a future date, another way to state this is to say 6. T
these items are bought on account.
7. A transaction for the sale of goods or services results in a decrease in owner’s equity. 7. F
8. Keeping
separate the financial records for a business and for its owner’s personal 8. T
belongings is an application of the Business Entity accounting concept.
9. An expense is a decrease in owner’s equity resulting from the operation of a business. 9. T
10. Business ethics are the principles of right and wrong that guide an individual in making 10. F
decisions.
11. Payments for advertising, equipment repairs, utilities, and rent are liabilities. 11. F
12. Withdrawals are assets taken out of a business for the owner’s personal use. 12. T
13. The most common type of withdrawal by an owner from a business is the withdrawal of 13. T
cash.
14. When an owner withdraws cash from the business, the transaction affects both assets 14. T
and owner’s equity.
15. A withdrawal is an expense. 15. F
2 • Chapter 1—Test A
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Name
Part Three—Determining How Transactions Change an Accounting Equation
Courtney Celeste is starting Celeste Consulting Services, a small service business. Celeste Consulting
Services uses the accounts shown in the following accounting equation. Use the form below to record
the following transactions. Use a plus sign (+) to indicate an increase and a minus sign (–) to indicate a
decrease. Calculate new balances for all accounts after each transaction.
Transactions
1. Received cash from owner as an investment, $10,000.00.
2. Paid cash for insurance, $3,000.00.
3. Bought supplies on account from Conrad Supplies, $1,500.00.
4. Paid cash on account to Conrad Supplies, $1,000.00.
5. Received cash from sales, $2,700.00.
6. Sold services on account to Ashley Computers, $3,300.00.
Owner’s
Assets 5 Liabilities 1
Equity
Trans.
Points
No. Accts. Rec.— Accts. Pay.— Courtney
Ashley Prepaid Conrad Celeste,
Cash Computers Supplies Insurance 5 supplies 1 Capital
Beg. Bal. 0 0 0 0 0 0
1 10,000 10,000 2
New Bal. 10,000 0 0 0 0 10,000 6
2 23,000 3,000 2
New Bal. 7,000 0 0 3,000 0 10,000 6
3 1,500 1,500 2
New Bal. 7,000 0 1,500 3,000 1,500 10,000 6
4 21,000 21,000 2
New Bal. 6,000 0 1,500 3,000 500 10,000 6
5 2,700 2,700 2
New Bal. 8,700 0 1,500 3,000 500 12,700 6
6 3,300 3,300 2
New Bal. 8,700 3,300 1,500 3,000 500 16,000 6
48
Chapter 1—Test A •
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in p
, Part Four—Determining How Transactions Change
an Accounting Equation
Continue to record transactions for Celeste Consulting Services, using the accounts shown in
the following accounting equation. Use the form below to record the following transactions.
Use a plus sign (+) to indicate an increase and a minus sign (–) to indicate a decrease.
Calculate new balances for all accounts after each transaction.
Transactions
7. Paid cash for supplies, $850.00.
8. Paid cash for rent, $1,000.00.
9. Paid cash to owner for personal use, $1,200.00.
10. Paid cash for telephone bill, $150.00.
11. Received cash on account from Ashley Computers, $2,000.00.
Owner’s
Assets 5 Liabilities 1
Equity
Trans.
Points
No. Accts. Rec.— Accts. Pay.— Courtney
Ashley Prepaid Conrad Celeste,
Cash Computers Supplies Insurance 5 supplies 1 Capital
Beg. Bal. 8,700 3,300 1,500 3,000 500 16,000
7 2850 1850 2
New Bal. 7,850 3,300 2,350 3,000 500 16,000 6
8 21,000 21,000 2
New Bal. 6,850 3,300 2,350 3,000 500 15,000 6
9 21,200 21,200 2
New Bal. 5,650 3,300 2,350 3,000 500 13,800 6
10 2150 2150 2
New Bal. 5,500 3,300 2,350 3,000 500 13,650 6
11 12,000 22,000 2
New Bal. 7,500 1,300 2,350 3,000 500 13,650 6
40
4 • Chapter 1—Test A
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Lehman, Debra Harmon-Gentene (Test Bank All Chapters, 100% Origin
Verified, A+ Grade)
Perfect You
Name Score Scor
Chapter 1 Defining Accounting Terms 27
Analyzing Accounting Practices 15
Pts.
Pts.
TEST A Determining How Transactions Change an Accounting Equation 48
Determining How Transactions Change an Accounting Equation 40
Pts.
Pts.
Total 130 Pts.
Part One—Defining Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Column I Column II Answer
A. account 1. A
formal report that shows what an individual owns, 1. S
what an individual owes, and the difference between
the two.
B. account balance 2. Planning,
recording, analyzing, and interpreting financial 2. D
information.
C. account title 3. An
equation showing the relationship among assets, 3. E
liabilities, and owner’s equity.
D. accounting 4. A business activity that changes assets, liabilities, or 4. Z
owner’s equity.
E. accounting equation 5. A planned process for providing financial information 5. F
that will be useful to management.
F. accounting system he standards and rules that accountants follow while
6. T 6. Q
recording and reporting financial activities.
G. asset account used to summarize the owner’s equity in
7. The 7. J
the business.
H. business ethics he amount remaining after the value of all liabilities is
8. T 8. T
subtracted from the value of all assets.
I. business plan record summarizing all the information pertaining to a
9. A 9. A
single item in the accounting equation.
J. capital account he difference between personal assets and personal
10. T 10. U
liabilities.
K. creditor 11. Anything of value that is owned. 11. G
L. equities 12. A sale for which cash will be received at a later date. 12. X
M. equity 13. Assets
taken out of a business for the owner’s personal 13. AA
use.
N. ethics formal written document that describes the nature of a
14. A 14. I
business and how it will operate.
O. expense 15. A business owned by one person. 15. V
P. financial statements 16. The use of ethics in making business decisions. 16. H
Q. GAAP 17. A business that performs an activity for a fee. 17. Y
R. liability 18. The difference between assets and liabilities. 18. M
S. net worth statement 19. Financial
reports that summarize the financial conditions 19. P
and operations of business.
T. owner’s equity 20. An amount owed by a business. 20. R
U. personal net worth 21. A person or business to whom a liability is owed. 21. K
Chapter 1—Test A •
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in p
, Column I Column II Answers
V. proprietorship 22. A
decrease in owner’s equity resulting from the 22. O
operation of a business.
W. revenue 23. An
increase in owner’s equity resulting from the 23. W
operation of a business.
X. sale on account 24. The amount in an account. 24. B
Y. service business 25. The name given to an account. 25. C
Z. transaction 26. Financial rights to the assets of a business. 26. L
AA. withdrawals 27. The
principles of right and wrong that guide an 27. N
individual in making decisions.
Part Two—Analyzing Accounting Practices
Directions: Place a T for True or an F for False in the Answers column to show whether
each of the following statements is true or false.
Answers
1. The accounting equation is most often stated as Assets + Liabilities = Owner’s Equity. 1. F
2. After each transaction, the accounting equation must remain in balance. 2. T
3. A negative amount for net worth would reflect more debt than assets, something a 3. F
creditor would favor.
4. When
two asset accounts are changed in a transaction, there must be an increase and a 4. T
decrease.
etailed information about changes in owner’s equity is needed by owners and
5. D 5. T
managers to make sound business decisions.
6. When
items are bought and paid for at a future date, another way to state this is to say 6. T
these items are bought on account.
7. A transaction for the sale of goods or services results in a decrease in owner’s equity. 7. F
8. Keeping
separate the financial records for a business and for its owner’s personal 8. T
belongings is an application of the Business Entity accounting concept.
9. An expense is a decrease in owner’s equity resulting from the operation of a business. 9. T
10. Business ethics are the principles of right and wrong that guide an individual in making 10. F
decisions.
11. Payments for advertising, equipment repairs, utilities, and rent are liabilities. 11. F
12. Withdrawals are assets taken out of a business for the owner’s personal use. 12. T
13. The most common type of withdrawal by an owner from a business is the withdrawal of 13. T
cash.
14. When an owner withdraws cash from the business, the transaction affects both assets 14. T
and owner’s equity.
15. A withdrawal is an expense. 15. F
2 • Chapter 1—Test A
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Name
Part Three—Determining How Transactions Change an Accounting Equation
Courtney Celeste is starting Celeste Consulting Services, a small service business. Celeste Consulting
Services uses the accounts shown in the following accounting equation. Use the form below to record
the following transactions. Use a plus sign (+) to indicate an increase and a minus sign (–) to indicate a
decrease. Calculate new balances for all accounts after each transaction.
Transactions
1. Received cash from owner as an investment, $10,000.00.
2. Paid cash for insurance, $3,000.00.
3. Bought supplies on account from Conrad Supplies, $1,500.00.
4. Paid cash on account to Conrad Supplies, $1,000.00.
5. Received cash from sales, $2,700.00.
6. Sold services on account to Ashley Computers, $3,300.00.
Owner’s
Assets 5 Liabilities 1
Equity
Trans.
Points
No. Accts. Rec.— Accts. Pay.— Courtney
Ashley Prepaid Conrad Celeste,
Cash Computers Supplies Insurance 5 supplies 1 Capital
Beg. Bal. 0 0 0 0 0 0
1 10,000 10,000 2
New Bal. 10,000 0 0 0 0 10,000 6
2 23,000 3,000 2
New Bal. 7,000 0 0 3,000 0 10,000 6
3 1,500 1,500 2
New Bal. 7,000 0 1,500 3,000 1,500 10,000 6
4 21,000 21,000 2
New Bal. 6,000 0 1,500 3,000 500 10,000 6
5 2,700 2,700 2
New Bal. 8,700 0 1,500 3,000 500 12,700 6
6 3,300 3,300 2
New Bal. 8,700 3,300 1,500 3,000 500 16,000 6
48
Chapter 1—Test A •
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in p
, Part Four—Determining How Transactions Change
an Accounting Equation
Continue to record transactions for Celeste Consulting Services, using the accounts shown in
the following accounting equation. Use the form below to record the following transactions.
Use a plus sign (+) to indicate an increase and a minus sign (–) to indicate a decrease.
Calculate new balances for all accounts after each transaction.
Transactions
7. Paid cash for supplies, $850.00.
8. Paid cash for rent, $1,000.00.
9. Paid cash to owner for personal use, $1,200.00.
10. Paid cash for telephone bill, $150.00.
11. Received cash on account from Ashley Computers, $2,000.00.
Owner’s
Assets 5 Liabilities 1
Equity
Trans.
Points
No. Accts. Rec.— Accts. Pay.— Courtney
Ashley Prepaid Conrad Celeste,
Cash Computers Supplies Insurance 5 supplies 1 Capital
Beg. Bal. 8,700 3,300 1,500 3,000 500 16,000
7 2850 1850 2
New Bal. 7,850 3,300 2,350 3,000 500 16,000 6
8 21,000 21,000 2
New Bal. 6,850 3,300 2,350 3,000 500 15,000 6
9 21,200 21,200 2
New Bal. 5,650 3,300 2,350 3,000 500 13,800 6
10 2150 2150 2
New Bal. 5,500 3,300 2,350 3,000 500 13,650 6
11 12,000 22,000 2
New Bal. 7,500 1,300 2,350 3,000 500 13,650 6
40
4 • Chapter 1—Test A
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
