Question 1

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following groups of accounts have a normal debit balance?

Accepted Answer

A) revenues,liabilities 
B) assets,liabilities 
C) liabilities,expenses 
D) assets,expenses 
A) revenues,liabilities 
B) assets,liabilities 
C) liabilities,expenses 
D) assets,expenses

Question 3

Revenue accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 4

On January 1,2010,Cary Parsons 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.

Accepted Answer

11 Cash
12 Accounts Receivable
13 Suppli

Question 5

The gross increases in retained earnings attributable to business activities are called

Accepted Answer

A) assets 
B) liabilities 
C) revenues 
D) expenses 
A) assets 
B) liabilities 
C) revenues 
D) expenses

Question 6

Prarie Clinic purchased X-ray equipment for $7,500,paid $2,250 down,with the remainder to be paid later.The correct entry would be

Accepted Answer

A) Equipment 2,250 
Cash 2,250 
B) Cash 2,250 
Accounts Payable 5,250
Equipment 7,500 
C) Equipment Expense 7,500
Accounts Payable 2,250
Cash 5,250 
D) Equipment 7,500 
Accounts Payable 5,250
Cash 2,250 
A) Equipment 2,250 
Cash 2,250 
B) Cash 2,250 
Accounts Payable 5,250
Equipment 7,500 
C) Equipment Expense 7,500
Accounts Payable 2,250
Cash 5,250 
D) Equipment 7,500 
Accounts Payable 5,250
Cash 2,250

Question 7

Which of the following group 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 8

Even when a trial balance is in balance,there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 9

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 10

The chart of accounts for the Corning Corporation includes the following:
 
On journal page 3,the following transaction was found:
$\begin{array}{|c|l|l|}
\hline \text { Prepaid Insurance } & 1,530 & \
\hline \text { Cash } & & 1,530 \
\hline
\end{array}$
What is the posting reference that will be found in the Cash account?

Accepted Answer

A) 11 
B) 15 
C) 3 
D) none of these 
A) 11 
B) 15 
C) 3 
D) none of these

Question 11

Which of the following accounts would be increased with a credit?

Accepted Answer

A) Land,Accounts Payable,Dividends 
B) Accounts Payable,Unearned Revenue,Capital Stock 
C) Capital Stock,Accounts Receivable,Unearned Revenue 
D) Cash,Accounts Receivable,Capital Stock 
A) Land,Accounts Payable,Dividends 
B) Accounts Payable,Unearned Revenue,Capital Stock 
C) Capital Stock,Accounts Receivable,Unearned Revenue 
D) Cash,Accounts Receivable,Capital Stock

Question 12

On October 30th,JumpStart paid its only stockholder,Damien Lawson,a $3,300 cash dividend.Journalize this event.

Accepted Answer

The answer of On October 30th,JumpStart paid its only stockholder,Damien...

Question 13

Which of the following errors would cause the trial balance totals to be unequal?

Accepted Answer

A) A transaction was not posted. 
B) A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash. 
C) A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Accounts Receivable. 
D) Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable. 
A) A transaction was not posted. 
B) A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash. 
C) A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Accounts Receivable. 
D) Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable.

Question 14

A chart of accounts is a listing of accounts that make up the journal.

Accepted Answer

A) True 
 B)False

Question 15

Prepaid expenses are an example of an expense.

Accepted Answer

A) True 
 B)False

Question 16

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 17

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 18

A debit may signify a(n)

Accepted Answer

A) decrease in an asset account 
B) decrease in a liability account 
C) increase in the retained earnings account 
D) decrease in the dividends account 
A) decrease in an asset account 
B) decrease in a liability account 
C) increase in the retained earnings account 
D) decrease in the dividends account

Question 19

Accounts payable are accounts that you expect will be paid to you.

Accepted Answer

A) True 
 B)False

Question 20

Normal balances appear on the side that increases the account balance.

Accepted Answer

A) True 
 B)False

The normal balance of an expense account is a credit.

Which of the following groups of accounts have a normal debit balance?

Revenue accounts are increased by credits.

The gross increases in retained earnings attributable to business activities are called

Prarie Clinic purchased X-ray equipment for $7,500,paid $2,250 down,with the remainder to be paid later.The correct entry would be

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

Even when a trial balance is in balance,there may be errors in the individual accounts.

Transactions are listed in the journal chronologically.

Which of the following accounts would be increased with a credit?

On October 30th,JumpStart paid its only stockholder,Damien Lawson,a $3,300 cash dividend.Journalize this event.

Which of the following errors would cause the trial balance totals to be unequal?

A chart of accounts is a listing of accounts that make up the journal.

Prepaid expenses are an example of an expense.

A credit to the cash account will increase the account.

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

A debit may signify a(n)

Accounts payable are accounts that you expect will be paid to you.

Normal balances appear on the side that increases the account balance.

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

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Exam 2: Analyzing Transactions

The normal balance of an expense account is a credit.

Which of the following groups of accounts have a normal debit balance?

Revenue accounts are increased by credits.

The gross increases in retained earnings attributable to business activities are called

Prarie Clinic purchased X-ray equipment for $7,500,paid $2,250 down,with the remainder to be paid later.The correct entry would be

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

Even when a trial balance is in balance,there may be errors in the individual accounts.

Transactions are listed in the journal chronologically.

The chart of accounts for the Corning Corporation includes the following: On journal page 3,the following transaction was found: Prepaid Insurance 1,530 Cash 1,530 What is the posting reference that will be found in the Cash account?

Which of the following accounts would be increased with a credit?

On October 30th,JumpStart paid its only stockholder,Damien Lawson,a $3,300 cash dividend.Journalize this event.

Which of the following errors would cause the trial balance totals to be unequal?

A chart of accounts is a listing of accounts that make up the journal.

Prepaid expenses are an example of an expense.

A credit to the cash account will increase the account.

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

A debit may signify a(n)

Accounts payable are accounts that you expect will be paid to you.

Normal balances appear on the side that increases the account balance.

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

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