Question 1

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

Accepted Answer

A) Accounts Receivable. 
B) Accounts Payable. 
C) Unearned Revenue. 
D) Ted Neal, Capital. 
E) Sales Revenue. 
A) Accounts Receivable. 
B) Accounts Payable. 
C) Unearned Revenue. 
D) Ted Neal, Capital. 
E) Sales Revenue.

Question 2

All increases and decreases in cash are not necessarily recorded in the Cash account

Accepted Answer

A) True 
 B)False

Question 3

Discuss the use of the trial balance

Accepted Answer

The trial balance is a list of all of th

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A general journal entry usually includes information about the date of a transaction,titles of affected accounts, dollar amount of each debit and credit and an explanation of the transaction.

Accepted Answer

A) True 
 B)False

Question 6

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) Expense account. 
D) Liability account. 
E) Capital account. 
A) Revenue account. 
B) Withdrawals account. 
C) Expense account. 
D) Liability account. 
E) Capital account.

Question 7

Which of the following statements is incorrect?

Accepted Answer

A) The normal balance of an expense account is a credit. 
B) The abnormal balance of a revenue account is a debit. 
C) The normal balance of the owner's withdrawals account is a debit. 
D) The normal balance of an unearned revenues account is a credit. 
E) The normal balance of the accounts receivable account is a debit. 
A) The normal balance of an expense account is a credit. 
B) The abnormal balance of a revenue account is a debit. 
C) The normal balance of the owner's withdrawals account is a debit. 
D) The normal balance of an unearned revenues account is a credit. 
E) The normal balance of the accounts receivable account is a debit.

Question 8

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

Accepted Answer

A) Recorded as a credit to a prepaid expense account. 
B) Recorded as a credit to an unearned revenue account. 
C) Recorded as a debit to a prepaid expense account. 
D) Recorded as a debit to an unearned revenue account. 
E) Not recorded in the accounting records. 
A) Recorded as a credit to a prepaid expense account. 
B) Recorded as a credit to an unearned revenue account. 
C) Recorded as a debit to a prepaid expense account. 
D) Recorded as a debit to an unearned revenue account. 
E) Not recorded in the accounting records.

Question 9

A balance column ledger account is

Accepted Answer

A) An account entered on the balance sheet. 
B) Another name for the withdrawals account. 
C) An account used to record the transfers of assets from a business to its owner. 
D) A simple form of account that is widely used in accounting education to illustrate the debits and credits required in recording a transaction. 
E) 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. 
A) An account entered on the balance sheet. 
B) Another name for the withdrawals account. 
C) An account used to record the transfers of assets from a business to its owner. 
D) A simple form of account that is widely used in accounting education to illustrate the debits and credits required in recording a transaction. 
E) 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.

Question 10

The accounting equation is expressed as assets = liabilities - equity

Accepted Answer

A) True 
 B)False

Question 11

On May 31, Don Company had an Accounts Payable balance of $57,000. During the month of June, total credits to Accounts Payable were $34,000, which resulted frompurchases on credit. The June 30 Accounts Payable balance was $32,000. What was the amount of payments made during June?

Accepted Answer

A) $34,000. 
B) $59,000. 
C) $57,000. 
D) $32,000. 
E) $84,000. 
A) $34,000. 
B) $59,000. 
C) $57,000. 
D) $32,000. 
E) $84,000.

Question 12

If an error is discovered in either the journal or the ledger, it must be corrected by erasing the incorrect amount and entering the corrected amount.

Accepted Answer

A) True 
 B)False

Question 13

Jay Smith's Word Processing began business and completed these transactionsduring the month of November:(a)Purchased office supplies on account, $75.(b)Completed work for a publisher on credit, $500.(c)Paid for the office supplies purchased in Transaction a.(d)Completed work for a resume writing service and received $85 cashReceived $500 for the work described in Transaction b.Prepare journal entries to record the above transactions. Include a briefdescription for each entry.

Accepted Answer

The answer of Jay Smith's Word Processing began business and...

Question 14

A ledger is

Accepted Answer

A) A book in which a complete record of transactions is recorded and from which transaction amounts are posted to the accounts. 
B) A book of original entry. 
C) A book of final entry. 
D) A journal in which transactions are first recorded. 
E) Another name for the bank account. 
A) A book in which a complete record of transactions is recorded and from which transaction amounts are posted to the accounts. 
B) A book of original entry. 
C) A book of final entry. 
D) A journal in which transactions are first recorded. 
E) Another name for the bank account.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The trial balance is a list of the accounts that have balances in the ledger

Accepted Answer

A) True 
 B)False

Question 17

A list of all accounts used by a company, including the identification number assignedto each account, is called a:

Accepted Answer

A) Trial balance. 
B) Ledger. 
C) General Journal. 
D) Chart of accounts. 
E) Journal. 
A) Trial balance. 
B) Ledger. 
C) General Journal. 
D) Chart of accounts. 
E) Journal.

Question 18

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

Question 19

The most flexible type of journal that can be used to record any kind of transaction is called a:

Accepted Answer

A) Trial balance. 
B) General Journal. 
C) Ledger. 
D) Chart of accounts. 
E) Balance column account. 
A) Trial balance. 
B) General Journal. 
C) Ledger. 
D) Chart of accounts. 
E) Balance column account.

Question 20

Debits increase asset and expense accounts

Accepted Answer

A) True 
 B)False

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

All increases and decreases in cash are not necessarily recorded in the Cash account

Discuss the use of the trial balance

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

A general journal entry usually includes information about the date of a transaction,titles of affected accounts, dollar amount of each debit and credit and an explanation of the transaction.

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

Which of the following statements is incorrect?

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

A balance column ledger account is

The accounting equation is expressed as assets = liabilities - equity

On May 31, Don Company had an Accounts Payable balance of $57,000. During the month of June, total credits to Accounts Payable were $34,000, which resulted frompurchases on credit. The June 30 Accounts Payable balance was $32,000. What was the amount of payments made during June?

If an error is discovered in either the journal or the ledger, it must be corrected by erasing the incorrect amount and entering the corrected amount.

A ledger is

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

The trial balance is a list of the accounts that have balances in the ledger

A list of all accounts used by a company, including the identification number assignedto each account, is called a:

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

The most flexible type of journal that can be used to record any kind of transaction is called a:

Debits increase asset and expense accounts

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

Appendix

Filters

Exam 2: Analyzing and Recording Transactions

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

All increases and decreases in cash are not necessarily recorded in the Cash account

Discuss the use of the trial balance

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

A general journal entry usually includes information about the date of a transaction,titles of affected accounts, dollar amount of each debit and credit and an explanation of the transaction.

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

Which of the following statements is incorrect?

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

A balance column ledger account is

The accounting equation is expressed as assets = liabilities - equity

On May 31, Don Company had an Accounts Payable balance of $57,000. During the month of June, total credits to Accounts Payable were $34,000, which resulted frompurchases on credit. The June 30 Accounts Payable balance was $32,000. What was the amount of payments made during June?

If an error is discovered in either the journal or the ledger, it must be corrected by erasing the incorrect amount and entering the corrected amount.

A ledger is

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

The trial balance is a list of the accounts that have balances in the ledger

A list of all accounts used by a company, including the identification number assignedto each account, is called a:

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

The most flexible type of journal that can be used to record any kind of transaction is called a:

Debits increase asset and expense accounts

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

Appendix

Filters