Question 1

Which of the following groups of accounts are increased with a debit?

Accepted Answer

A)  assets, liabilities, stockholders' equity 
B)  assets, dividends, expenses 
C)  assets, revenues, expenses 
D)  assets, liabilities, revenues 
A)  assets, liabilities, stockholders' equity 
B)  assets, dividends, expenses 
C)  assets, revenues, expenses 
D)  assets, liabilities, revenues

Question 2

Debiting the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 3

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Accepted Answer

A) True 
 B)False

Question 4

Journalize the entries to correct the following errors:
a) A purchase of supplies for $500 on account was recorded and posted as a debit to Supplies for $200 and as a credit to Accounts Receivable for $200.
b) A receipt of $2,500 from Fees Earned was recorded and posted as a debit to Fees Earned for $2,500 and a credit to Cash for $2,500.

Accepted Answer

a) Accounts Receivable 200
Sup

Question 5

Which of the following is not considered to be a liability?

Accepted Answer

A)  Wages Payable 
B)  Accounts Receivable 
C)  Unearned Revenues 
D)  Accounts Payable 
A)  Wages Payable 
B)  Accounts Receivable 
C)  Unearned Revenues 
D)  Accounts Payable

Question 6

Depending on the account title, the right side of the account is referred to as the credit side.

Accepted Answer

A) True 
 B)False

Question 7

The is where a transaction can first be found in the accounting records.

Accepted Answer

A)  chart of accounts 
B)  income statement 
C)  balance sheet 
D)  journal 
A)  chart of accounts 
B)  income statement 
C)  balance sheet 
D)  journal

Question 8

Prepaid expenses are an example of an expense.

Accepted Answer

A) True 
 B)False

Question 9

Which are the parts of the T account?

Accepted Answer

A)  title, date, total 
B)  date, debit side, credit side 
C)  title, debit side, credit side 
D)  title, debit side, total 
A)  title, date, total 
B)  date, debit side, credit side 
C)  title, debit side, credit side 
D)  title, debit side, total

Question 10

The Posting Reference columns are used to trace transactions from the accounts to the journal. What will be entered in the Posting Reference column of 1) the journal and 2) the account?

Accepted Answer

A)  1) the amount of the debit or credit and 2) the journal page number 
B)  1) the journal page number and 2) the date of the transaction 
C)  1) the journal page number and 2) the account number 
D)  1) the account number and 2) the journal page number 
A)  1) the amount of the debit or credit and 2) the journal page number 
B)  1) the journal page number and 2) the date of the transaction 
C)  1) the journal page number and 2) the account number 
D)  1) the account number and 2) the journal page number

Question 11

The stockholders' equity will be reduced by all of the following except

Accepted Answer

A)  revenues 
B)  expenses 
C)  dividends 
D)  all of these 
A)  revenues 
B)  expenses 
C)  dividends 
D)  all of these

Question 12

On January 1, Cassie Harris and other stockholders established a catering service. Listed below are accounts she would like to open in the general ledger. List the accounts in the order in which they should appear in the ledger and propose a two digit account numbering scheme that is consistent with the rules of a proper chart of accounts.
1. Cash
2. Supplies
3. Equipment
4. Accounts Payable
5. Common Stock
6. Wages Expense
7. Rent Expense
8. Truck
9. Utilities Expense
10. Dividends
11. Truck Expense
12. Prepaid Insurance
13. Fees Earned
14. Miscellaneous Expense
15. Insurance Expense
16. Notes Payable
17. Accounts Receivable

Accepted Answer

11 Cash
12 Accounts Receivable
13 Suppli

Question 13

Prepare a trial balance, listing the following accounts in proper sequence. The accounts all normal balances) were taken from the ledger of Sophie Designs Co. on April 30.

$$\begin{array} { l r l r } 
\text { Accounts Payable } & \$ 4,100 & \text { Rent Expense } & \$ 11,500 \
\text { Accounts Receivable } & 3,450 & \text { Salary Expense } & 14,000 \
\text { Cash } & 6,700 & \text { Fees Earned } & 45,425 \
\text { Common Stock } & 17,800 & \text { Supplies } & 3,125 \
\text { Dividends } & 7,500 & \text { Supplies Expense } & 1,700 \
\text { Equipment } & 14,500 & \text { Utilities Expense } & 4,000 \
\text { Miscellaneous Expense } & 850 & &
\end{array}$$

Accepted Answer

The answer of Prepare a trial balance, listing the following...

Question 14

Joshua Scott invests $40,000 into his new business. How would this transaction be entered in the journal in good form?

Accepted Answer

A)  Cash 40,000 Common Stock 40,000
Invested cash in business. 
B)  Accounts Receivable 40,000 Common Stock 40,000
Invested cash in business. 
C)  Common Stock 40,000 Cash 40,000
Invested cash in business. 
D)  Loans Payable 40,000 Cash 40,000
Invested cash in business. 
A)  Cash 40,000 Common Stock 40,000
Invested cash in business. 
B)  Accounts Receivable 40,000 Common Stock 40,000
Invested cash in business. 
C)  Common Stock 40,000 Cash 40,000
Invested cash in business. 
D)  Loans Payable 40,000 Cash 40,000
Invested cash in business.

Question 15

In which order are the accounts listed in the chart of accounts?

Accepted Answer

A)  assets, expenses, liabilities, stockholders' equity, revenues 
B)  stockholders' equity, assets, liabilities, revenues, expenses 
C)  assets, liabilities, stockholders' equity, revenues, expenses 
D)  assets, liabilities, revenues, expenses, stockholders' equity 
A)  assets, expenses, liabilities, stockholders' equity, revenues 
B)  stockholders' equity, assets, liabilities, revenues, expenses 
C)  assets, liabilities, stockholders' equity, revenues, expenses 
D)  assets, liabilities, revenues, expenses, stockholders' equity

Question 16

Normal account balances are on the increase side of the accounts.

Accepted Answer

A) True 
 B)False

Question 17

A group of related accounts that make up a complete unit is called a trial balance.

Accepted Answer

A) True 
 B)False

Question 18

Exhibit 2-1
All nine transactions for Ralston Sports Co. for September, the first month of operations, are recorded in the following T accounts:
 
-Refer to Exhibit 2-1. Prepare a trial balance, listing the accounts in their proper order.

Accepted Answer

The answer of Exhibit 2-1
All nine transactions for Ralston Sports...

Question 19

a) List the errors in the following trial balance. All accounts have normal balances.
b)What would be the new totals of the trial balance after errors are corrected? What would be the balance of Accounts Receivable?

Accepted Answer

a) 1) In the heading, the date should be

Question 20

$$\begin{array} { | c | l | c | l | l | l | } 
\hline \text { April } & 14 & \text { Equipment } & & 15,000 & \
\hline & & \text { Cash } & & & 5,000 \
\hline & & \text { Note Payable } & & & 10,000 \
\hline & & ? ? ? ? ? ? ? ? ? ? ? & & & \
\hline
\end{array}$$ Which is the best explanation for this journal entry?

Accepted Answer

A)  Purchased equipment; paid cash of $5,000, with the remainder to be paid in the future. 
B)  Purchased equipment; paid cash of $10,000, with the remainder to be received in the future. 
C)  Purchased equipment with cash. 
D)  Purchased equipment on account. 
A)  Purchased equipment; paid cash of $5,000, with the remainder to be paid in the future. 
B)  Purchased equipment; paid cash of $10,000, with the remainder to be received in the future. 
C)  Purchased equipment with cash. 
D)  Purchased equipment on account.

Exam 2: Analyzing Transactions

Which of the following groups of accounts are increased with a debit?

Debiting the cash account will increase the account.

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Which of the following is not considered to be a liability?

Depending on the account title, the right side of the account is referred to as the credit side.

The is where a transaction can first be found in the accounting records.

Prepaid expenses are an example of an expense.

Which are the parts of the T account?

The Posting Reference columns are used to trace transactions from the accounts to the journal. What will be entered in the Posting Reference column of 1) the journal and 2) the account?

The stockholders' equity will be reduced by all of the following except

Joshua Scott invests $40,000 into his new business. How would this transaction be entered in the journal in good form?

In which order are the accounts listed in the chart of accounts?

Normal account balances are on the increase side of the accounts.

A group of related accounts that make up a complete unit is called a trial balance.

Exhibit 2-1 All nine transactions for Ralston Sports Co. for September, the first month of operations, are recorded in the following T accounts: -Refer to Exhibit 2-1. Prepare a trial balance, listing the accounts in their proper order.

a) List the errors in the following trial balance. All accounts have normal balances. b)What would be the new totals of the trial balance after errors are corrected? What would be the balance of Accounts Receivable?

April 14 Equipment 15,000 Cash 5,000 Note Payable 10,000 ??????????? Which is the best explanation for this journal entry?

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

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