Question 1

The accounting equation is expressed as assets = liabilities - equity.

Accepted Answer

A) True 
 B)False

Question 2

A T-Account is a formal account frequently used in business.

Accepted Answer

A) True 
 B)False

Question 3

A balance column ledger account is

Accepted Answer

A)  An account entered on the balance sheet 
B)  An account with debit and credit columns for recording entries and a third column for showing the balance of the account after each entry is posted 
C)  Another name for the withdrawals account 
D)  An account used to record the transfers of assets from a business to its owner 
E)  A simple form of account that is widely used in accounting education to illustrate the debits and credits required in recording a transaction 
A)  An account entered on the balance sheet 
B)  An account with debit and credit columns for recording entries and a third column for showing the balance of the account after each entry is posted 
C)  Another name for the withdrawals account 
D)  An account used to record the transfers of assets from a business to its owner 
E)  A simple form of account that is widely used in accounting education to illustrate the debits and credits required in recording a transaction

Question 4

Dawn Roberts is a real estate consultant and property manager. Below are the names of several accounts in her ledger with each account name preceded by a number. Following the account names are several transactions completed by Ms. Roberts. Indicate the accounts debited and credited in recording each transaction by placing the proper account numbers in the boxes to the right of each transaction.

Accepted Answer

(1) debit 4, credit 14 (2) deb

Question 5

A debit is used to record

Accepted Answer

A)  an increase in a liability account 
B)  a decrease in an asset account 
C)  a decrease in the withdrawals account 
D)  an increase in an asset account 
E)  an increase in a revenue account 
A)  an increase in a liability account 
B)  a decrease in an asset account 
C)  a decrease in the withdrawals account 
D)  an increase in an asset account 
E)  an increase in a revenue account

Question 6

Jelly's Grocery Store showed the following account balances at the end of 2020:   If all of the accounts have normal balances, what is the total of the trial balance?

Accepted Answer

A)  $86,000 
B)  $119,600 
C)  $127,600 
D)  $186,600 
E)  $255,500 
A)  $86,000 
B)  $119,600 
C)  $127,600 
D)  $186,600 
E)  $255,500

Question 7

On June 20, 2020, Lucie Majeau invested the following assets in a new sole proprietorship: cash, $12,000; office equipment, $6,000; land, $100,000; building, $115,000. Majeau owes the bank a $25,000 note payable that is secured by the land and building. Prepare the general journal entry to record Majeau's investments in the new business.

Accepted Answer

The answer of On June 20, 2020, Lucie Majeau invested...

Question 8

If the Debit and Credit column totals of a trial balance are equal, then

Accepted Answer

A)  All transactions have been recorded correctly. 
B)  All entries from the journal have been posted to the ledger correctly. 
C)  All ledger account balances are correct. 
D)  The total debit entries and total credit entries in the ledger are equal. 
E)  No sliding or transposition errors have been made. 
A)  All transactions have been recorded correctly. 
B)  All entries from the journal have been posted to the ledger correctly. 
C)  All ledger account balances are correct. 
D)  The total debit entries and total credit entries in the ledger are equal. 
E)  No sliding or transposition errors have been made.

Question 9

Put the steps of the accounting cycle in the correct order: Adjust Analyze transactions Close Journalize Post Prepare adjusted trial balance Prepare post-closing trial balance Prepare statements Prepare unadjusted trial balance

Accepted Answer

1. Analyze transactions 
2. Journalize

Question 10

To credit an asset account means to decrease it.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true?

Accepted Answer

A)  The trial balance is never used to prepare financial statements. 
B)  The trial balance is a list of all the accounts in the journal 
C)  Another name for the trial balance is the "chart of accounts" 
D)  The trial balance is a list of the accounts in the general ledger 
E)  A trial balance is only prepared at year end 
A)  The trial balance is never used to prepare financial statements. 
B)  The trial balance is a list of all the accounts in the journal 
C)  Another name for the trial balance is the "chart of accounts" 
D)  The trial balance is a list of the accounts in the general ledger 
E)  A trial balance is only prepared at year end

Question 12

In a double-entry accounting system, total debits must always equal total credits.

Accepted Answer

A) True 
 B)False

Question 13

For each of the following errors, indicate on the schedule the amount it will cause the trial balance to be out of balance and which trial balance column (i.e., debit or credit) will have the larger total as a result of the error.(a) A $100 debit to Cash was debited to the Cash account twice.(b) A $1,900 credit to Sales was posted as a $190 credit.(c) A $5,000 debit to Office Equipment was debited to Office Supplies.(d) A $625 debit to Prepaid Insurance was posted as a $62.50 debit.(e) A $520 debit to Supplies (purchased on account) was posted correctly, but the corresponding credit to Accounts Payable was not posted.

Accepted Answer

The answer of For each of the following errors, indicate...

Question 14

The right side of a T-account is a(n)

Accepted Answer

A)  debit 
B)  increase 
C)  credit 
D)  decrease 
E)  account balance 
A)  debit 
B)  increase 
C)  credit 
D)  decrease 
E)  account balance

Question 15

Of the following accounts, the one that normally has a debit balance is

Accepted Answer

A)  accounts payable 
B)  accounts receivable 
C)  Ted Neal, capital 
D)  sales revenue 
E)  unearned revenue 
A)  accounts payable 
B)  accounts receivable 
C)  Ted Neal, capital 
D)  sales revenue 
E)  unearned revenue

Question 16

A $15 credit to Sales was posted as a $150 credit. By what amount is Sales out of balance?

Accepted Answer

A)  $150 understated 
B)  $135 overstated 
C)  $150 overstated 
D)  $15 understated 
E)  $135 understated 
A)  $150 understated 
B)  $135 overstated 
C)  $150 overstated 
D)  $15 understated 
E)  $135 understated

Question 17

Step Two of the accounting cycle requires that we record transactions in a record called a journal.

Accepted Answer

A) True 
 B)False

Question 18

The account sometimes referred to as the owner's personal account or drawing account is called a(n)

Accepted Answer

A)  revenue account 
B)  withdrawals account 
C)  capital account 
D)  expense account 
E)  liability account 
A)  revenue account 
B)  withdrawals account 
C)  capital account 
D)  expense account 
E)  liability account

Question 19

A transaction that increases an asset account and decreases a liability account must also affect another account.

Accepted Answer

A) True 
 B)False

Question 20

In which of the following situations would the trial balance not balance?

Accepted Answer

A)  A $1,000 collection of an account receivable was incorrectly posted as a debit to Accounts Receivable and a credit to Cash. 
B)  The purchase of office supplies on account for $3,250 was incorrectly recorded in the journal as $2,350. 
C)  $50 cash receipt for the performance of a service was not recorded. 
D)  The purchase of office equipment for $1,200 was posted as a debit to Office Supplies. 
E)  The payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750. 
A)  A $1,000 collection of an account receivable was incorrectly posted as a debit to Accounts Receivable and a credit to Cash. 
B)  The purchase of office supplies on account for $3,250 was incorrectly recorded in the journal as $2,350. 
C)  $50 cash receipt for the performance of a service was not recorded. 
D)  The purchase of office equipment for $1,200 was posted as a debit to Office Supplies. 
E)  The payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

The accounting equation is expressed as assets = liabilities - equity.

A T-Account is a formal account frequently used in business.

A balance column ledger account is

A debit is used to record

Jelly's Grocery Store showed the following account balances at the end of 2020: If all of the accounts have normal balances, what is the total of the trial balance?

If the Debit and Credit column totals of a trial balance are equal, then

Put the steps of the accounting cycle in the correct order: Adjust Analyze transactions Close Journalize Post Prepare adjusted trial balance Prepare post-closing trial balance Prepare statements Prepare unadjusted trial balance

To credit an asset account means to decrease it.

Which of the following statements is true?

In a double-entry accounting system, total debits must always equal total credits.

The right side of a T-account is a(n)

Of the following accounts, the one that normally has a debit balance is

A $15 credit to Sales was posted as a $150 credit. By what amount is Sales out of balance?

Step Two of the accounting cycle requires that we record transactions in a record called a journal.

The account sometimes referred to as the owner's personal account or drawing account is called a(n)

A transaction that increases an asset account and decreases a liability account must also affect another account.

In which of the following situations would the trial balance not balance?

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters

Exam 2: Analyzing and Recording Transactions

The accounting equation is expressed as assets = liabilities - equity.

A T-Account is a formal account frequently used in business.

A balance column ledger account is

A debit is used to record

Jelly's Grocery Store showed the following account balances at the end of 2020: If all of the accounts have normal balances, what is the total of the trial balance?

If the Debit and Credit column totals of a trial balance are equal, then

Put the steps of the accounting cycle in the correct order: Adjust Analyze transactions Close Journalize Post Prepare adjusted trial balance Prepare post-closing trial balance Prepare statements Prepare unadjusted trial balance

To credit an asset account means to decrease it.

Which of the following statements is true?

In a double-entry accounting system, total debits must always equal total credits.

The right side of a T-account is a(n)

Of the following accounts, the one that normally has a debit balance is

A $15 credit to Sales was posted as a $150 credit. By what amount is Sales out of balance?

Step Two of the accounting cycle requires that we record transactions in a record called a journal.

The account sometimes referred to as the owner's personal account or drawing account is called a(n)

A transaction that increases an asset account and decreases a liability account must also affect another account.

In which of the following situations would the trial balance not balance?

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters