Question 1

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, paid cash for the entire amount. 
D)  Purchased equipment on credit. 
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, paid cash for the entire amount. 
D)  Purchased equipment on credit.

Question 2

Match between columns
                        Premises: The company collected $730 of cash from its customers on account.
The company paid $315 in salaries to its employees.
The company paid $725 to a vendor for supplies purchased previously on account.
The company received a utility bill for $395 and will pay it next month.
The stockholder of the company received a cash dividend of $1,000.
The company performed $850 of services and billed the customer.

Accepted Answer

The Answer of Expense, dr.; Assets, cr. and Expense, dr.; is...

Question 3

What effect does this journal entry have on the accounts?

Accepted Answer

A)  Decrease accounts payable, increase cash 
B)  Increase cash, decrease accounts payable 
C)  Increase accounts payable, increase cash 
D)  Decrease accounts payable, decrease cash 
A)  Decrease accounts payable, increase cash 
B)  Increase cash, decrease accounts payable 
C)  Increase accounts payable, increase cash 
D)  Decrease accounts payable, decrease cash

Question 4

The process of recording a transaction in the journal is called journalizing.

Accepted Answer

A) True 
 B)False

Question 5

The balance of the 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 6

The chart of accounts should be the same for each business.

Accepted Answer

A) True 
 B)False

Question 7

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following entries records the payment of rent for the current month?

Accepted Answer

A)  Cash, debit; Rent Expense, credit 
B)  Rent Expense, debit; Cash, credit 
C)  Rent Expense, debit; Accounts Receivable, credit 
D)  Accounts Payable, debit; Rent Expense, credit 
A)  Cash, debit; Rent Expense, credit 
B)  Rent Expense, debit; Cash, credit 
C)  Rent Expense, debit; Accounts Receivable, credit 
D)  Accounts Payable, debit; Rent Expense, credit

Question 9

The chart of accounts for Miguel Corporation includes the following:   On journal page 5, the following transaction was found:
  What is the posting reference that will be found in the Salaries Expense account?

Accepted Answer

A)  5 
B)  11 
C)  54 
D)  none of these 
A)  5 
B)  11 
C)  54 
D)  none of these

Question 10

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 11

On December 1st, JumpStart Company provides $2,800 in services to clients.
(a) Journalize this event as if the clients had paid cash at the time the services were rendered.
(b) (1) Journalize this event as if the clients had placed this on account.
(b) (2) Assume that the clients paid $1,200 of the amount on account on December 30th. Journalize this transaction.

Accepted Answer

(a) Journal Entry:
Accounts Receivable

Question 12

The process of recording a transaction in the journal is called

Accepted Answer

A)  recording 
B)  journalizing 
C)  posting 
D)  summarizing 
A)  recording 
B)  journalizing 
C)  posting 
D)  summarizing

Question 13

When an accounts payable account is paid in cash, company expenses increase.

Accepted Answer

A) True 
 B)False

Question 14

Georgia Company has condensed income statements as follows:
  
 REQUIRED:
Prepare a horizontal analysis of Georgia Company's income statements. Comment on the trends, both favorable and unfavorable.

Accepted Answer

@#IMG-DLM& 
The trend in sales revenue is unfavora

Question 15

When an account receivable is collected in cash, the total assets of the business increase.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following abbreviations are correct?

Accepted Answer

A)  Debit "Dr", Credit "Cd" 
B)  Debit "Db", Credit "Cr" 
C)  Debit "Db", Credit "Cd" 
D)  Debit "Dr", Credit "Cr" 
A)  Debit "Dr", Credit "Cd" 
B)  Debit "Db", Credit "Cr" 
C)  Debit "Db", Credit "Cd" 
D)  Debit "Dr", Credit "Cr"

Question 18

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 19

The process of initially recording a business transaction is called

Accepted Answer

A)  closing 
B)  posting 
C)  journalizing 
D)  balancing 
A)  closing 
B)  posting 
C)  journalizing 
D)  balancing

Question 20

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

Exam 2: Analyzing Transactions

Which is the best explanation for this journal entry?

What effect does this journal entry have on the accounts?

The process of recording a transaction in the journal is called journalizing.

The balance of the account is determined by

The chart of accounts should be the same for each business.

Liabilities are increased with debits and decreased with credits.

Which of the following entries records the payment of rent for the current month?

The chart of accounts for Miguel Corporation includes the following: On journal page 5, the following transaction was found: What is the posting reference that will be found in the Salaries Expense account?

A credit to the cash account will increase the account.

The process of recording a transaction in the journal is called

When an accounts payable account is paid in cash, company expenses increase.

Georgia Company has condensed income statements as follows: REQUIRED: Prepare a horizontal analysis of Georgia Company's income statements. Comment on the trends, both favorable and unfavorable.

When an account receivable is collected in cash, the total assets of the business increase.

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

Which of the following abbreviations are correct?

A transaction that is recorded in the journal is called a journal entry.

The process of initially recording a business transaction is called

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.

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 and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

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