Question 1

The balance of an account is determined by

Accepted Answer

A)  adding all of the debits to all of the credits 
B)  always subtracting the debits from the credits 
C)  always subtracting the credits from the debits 
D)  adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum 
A)  adding all of the debits to all of the credits 
B)  always subtracting the debits from the credits 
C)  always subtracting the credits from the debits 
D)  adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum

Question 2

A cash payment is recorded in the cash account as

Accepted Answer

A)  neither a debit nor a credit 
B)  a credit 
C)  a debit 
D)  either a debit or a credit 
A)  neither a debit nor a credit 
B)  a credit 
C)  a debit 
D)  either a debit or a credit

Question 3

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Accepted Answer

A) True 
 B)False

Question 4

Accounts are classified in the ledger

Accepted Answer

A)  do not reflect money amounts 
B)  are not used by entities that manufacture products 
C)  are records of increases and decreases in individual accounting equation elements 
D)  are only used by large entities with many transactions 
A)  do not reflect money amounts 
B)  are not used by entities that manufacture products 
C)  are records of increases and decreases in individual accounting equation elements 
D)  are only used by large entities with many transactions

Question 5

The chart of accounts for the Miguel Company includes the following:   
 Page 3 of the journal contains the following transaction:
   
-
What is the posting reference that will be found in the salaries expense account?

Accepted Answer

A)  5 
B)  11 
C)  54 
D)  21 
A)  5 
B)  11 
C)  54 
D)  21

Question 6

The classification and normal balance of the dividends account is

Accepted Answer

A)  an expense with a credit balance 
B)  an expense with a debit balance 
C)  a liability with a credit balance 
D)  stockholders' equity with a debit balance 
A)  an expense with a credit balance 
B)  an expense with a debit balance 
C)  a liability with a credit balance 
D)  stockholders' equity with a debit balance

Question 7

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true regarding normal balances of accounts?

Accepted Answer

A)  ​All accounts have a normal debit balance. 
B)  ​The normal balance of all accounts will have either a positive or negative balance. 
C)  ​Accounts that have a normal debit balance will only have debit entries, never credit entries. 
D)  ​The normal balance is on the increase side of the account. 
A)  ​All accounts have a normal debit balance. 
B)  ​The normal balance of all accounts will have either a positive or negative balance. 
C)  ​Accounts that have a normal debit balance will only have debit entries, never credit entries. 
D)  ​The normal balance is on the increase side of the account.

Question 9

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

Question 10

Faso Fabricating, Inc. and Spinoza Fabrication Corp. are in the same industry and are located in the same region of the country. They have condensed income statements as shown.   
 Using horizontal analysis, calculate the percent change for net income for each company. Round percentages to one decimal place.

Accepted Answer

A)  Faso: ?17.2%; Spinoza: ?6.4% 
B)  Faso: ?17.2%; Spinoza: 6.4% 
C)  Faso: 17.2%; Spinoza: ?6.4% 
D)  Faso: 17.2%; Spinoza: 6.4% 
A)  Faso: ?17.2%; Spinoza: ?6.4% 
B)  Faso: ?17.2%; Spinoza: 6.4% 
C)  Faso: 17.2%; Spinoza: ?6.4% 
D)  Faso: 17.2%; Spinoza: 6.4%

Question 11

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 12

Match between columns
                        Premises:  Common Stock
 Accounts Receivable
 Accounts Payable
 Interest Revenue
 Copyrights

Accepted Answer

The Answer of Credit side and Debit side is...

Question 13

Which of the following is true about T accounts?

Accepted Answer

A)  The left side of a T account is called the debit side. 
B)  The left side of a T account is called the credit side. 
C)  The right side of a T account is called the debit side. 
D)  Transactions are first recorded in T accounts and then posted to the journal. 
A)  The left side of a T account is called the debit side. 
B)  The left side of a T account is called the credit side. 
C)  The right side of a T account is called the debit side. 
D)  Transactions are first recorded in T accounts and then posted to the journal.

Question 14

Match between columns
                        Premises:  Balance incorrectly computed.
 Debit or credit posting omitted.
 Wrong amount posted to an account.
 Trial balance column incorrectly added.
 Balance entered on wrong side of account.
 Amount incorrectly entered on trial balance.
 Balance entered in wrong trial balance column or omitted.
 Debit posted as credit, or vice versa.

Accepted Answer

The Answer of Trial balance preparation errors and Account balance is...

Question 15

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 16

In which of the following types of accounts are decreases recorded by credits?

Accepted Answer

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

Question 17

The chart of accounts for the Miguel Company includes the following:   
 Page 3 of the journal contains the following transaction:
   
- 
What posting references will be found in the journal entry?

Accepted Answer

A)  41, 3 
B)  3, 11 
C)  11, 41 
D)  11, 3 
A)  41, 3 
B)  3, 11 
C)  11, 41 
D)  11, 3

Question 18

The payment for the monthly rent will require which of the following entries?

Accepted Answer

A)  debit Cash and debit Rent Expense 
B)  credit Cash and credit Rent Expense 
C)  debit Rent Expense and credit Cash 
D)  credit Rent Expense and debit Cash 
A)  debit Cash and debit Rent Expense 
B)  credit Cash and credit Rent Expense 
C)  debit Rent Expense and credit Cash 
D)  credit Rent Expense and debit Cash

Question 19

On November 30, the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

Accepted Answer

The answer of On November 30, the company accountant discovers...

Question 20

Calculate the following:

Accepted Answer

The answer of Calculate the following:  ...

The balance of an account is determined by

A cash payment is recorded in the cash account as

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Accounts are classified in the ledger

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: - What is the posting reference that will be found in the salaries expense account?

The classification and normal balance of the dividends account is

Consuming goods and services in the process of generating revenues results in expenses.

Which of the following is true regarding normal balances of accounts?

Liability accounts are increased by debits.

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 true about T accounts?

A credit to the cash account will increase the account.

In which of the following types of accounts are decreases recorded by credits?

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: - What posting references will be found in the journal entry?

The payment for the monthly rent will require which of the following entries?

On November 30, the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

Calculate the following:

Accounting and Business

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 2: Double-Entry Accounting

The balance of an account is determined by

A cash payment is recorded in the cash account as

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Accounts are classified in the ledger

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: - What is the posting reference that will be found in the salaries expense account?

The classification and normal balance of the dividends account is

Consuming goods and services in the process of generating revenues results in expenses.

Which of the following is true regarding normal balances of accounts?

Liability accounts are increased by debits.

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 true about T accounts?

A credit to the cash account will increase the account.

In which of the following types of accounts are decreases recorded by credits?

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: - What posting references will be found in the journal entry?

The payment for the monthly rent will require which of the following entries?

On November 30, the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

Calculate the following:

Accounting and Business

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters