ACCT 212 CheckPoints Week 2: DeVry University( 100% CORRECT)

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ACCT 212 CheckPoints Week 2: DeVry University( 100% CORRECT) 1. Question : (TCO 2) A company received cash in exchange for issuing stock. This transaction increased assets and Student Answe ... r: increased expenses. increased revenues. increased liabilities. increased equity. Instructor Explanation: See Chapter 2. Points Received: 3 of 3 Comments: Question 2. Question : (TCO 2) Which of the following transactions will increase Stockholders' Equity? Student Answer: The company pays a dividend to its shareholders. The company issues common stock to new shareholders. The president of the company buys a new personal automobile. The company makes a payment on account. Instructor Explanation: See Chapter 2. Points Received: 3 of 3 Comments: Question 3. Question : (TCO 2) When a company borrows cash from the bank Student Answer: total assets remain the same. liabilities are increased. retained earnings is decreased. total liabilities remain the same. Instructor Explanation: See Chapter 2. Points Received: 3 of 3 Comments: Question 4. Question : (TCO 2) The left side of a T-account is always the Student Answer: increase side. decrease side. debit side. credit side. Instructor Explanation: See Chapter 2. Points Received: 3 of 3 Comments: Question 5. Question : (TCO 2) An account is increased by a debit and has a debit balance. This account is Student Answer: an expense account. a liability account. an asset account. both an expense account and an asset account. Instructor Explanation: See Chapter 2. Points Received: 3 of 3 Comments: Question 6. Question : (TCO 2) Accounting transactions are initially recorded in the Student Answer: T-account. ledger. journal. financial statements. Instructor Explanation: See Chapter 2. Points Received: 3 of 3 Comments: Question 7. Question : (TCO 3) Under accrual accounting, revenue is recorded Student Answer: when the cash is collected, regardless of when the services are performed. when the services are performed, regardless of when the cash is received. either when the cash is received or the sale is made. only if the cash is received at the same time the services are performed. Instructor Explanation: See Chapter 3. Points Received: 3 of 3 Comments: Question 8. Question : (TCO 3) The revenue principle requires that a business record revenue when the business Student Answer: receives an order from a customer. prepares the invoice for the customer. delivers goods or services to a customer. receives payment from a customer. Instructor Explanation: See Chapter 3. Points Received: 3 of 3 Comments: Question 9. Question : (TCO 3) The balance sheet reports Student Answer: assets, liabilities and stockholders' equity. the changes in retained earnings. assets, liabilities, revenues and expenses. revenues and expenses. Instructor Explanation: See Chapter 3. Points Received: 3 of 3 Comments: Question 10. Question : (TCO 3) Closing entries Student Answer: are made at the beginning of each accounting period. prepare the accounts for the next period's transaction. cannot be done using a computer. are the same as adjusting entries. Instructor Explanation: See Chapter 3. [Show More]

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