Question 1

A cash payment is recorded on the cash account as a

Accepted Answer

A)  neither a debit or a credit 
B)  credit 
C)  debit 
D)  either a debit or a credit 
A)  neither a debit or a credit 
B)  credit 
C)  debit 
D)  either a debit or a credit

Question 2

Transactions are initially entered into a record called a journal.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Expense accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 5

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 payments. 
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 payments. 
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 6

The ____ is where a transaction can first be found on 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 7

When an owner contributes equipment to the business, he or she retains ownership of the property.

Accepted Answer

A) True 
 B)False

Question 8

A chart of accounts is

Accepted Answer

A)  the same as a balance sheet 
B)  usually a listing of accounts in alphabetical order 
C)  usually a listing of accounts in financial statement order 
D)  used in place of a ledger 
A)  the same as a balance sheet 
B)  usually a listing of accounts in alphabetical order 
C)  usually a listing of accounts in financial statement order 
D)  used in place of a ledger

Question 9

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 10

When an accounts payable account is paid in cash, the owner's equity in the business decreases.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  Land, Accounts Payable, Drawing 
B)  Accounts Payable, Unearned revenue, Collins Capital 
C)  Collins Capital, Accounts Receivable, Unearned Revenue 
D)  Cash, Accounts Receivable, Collins Capital 
A)  Land, Accounts Payable, Drawing 
B)  Accounts Payable, Unearned revenue, Collins Capital 
C)  Collins Capital, Accounts Receivable, Unearned Revenue 
D)  Cash, Accounts Receivable, Collins Capital

Question 12

Revenue should be recognized when

Accepted Answer

A)  cash is received 
B)  the service is performed 
C)  the customer places an order 
D)  the supplier charges an order 
A)  cash is received 
B)  the service is performed 
C)  the customer places an order 
D)  the supplier charges an order

Question 13

On November 1st Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land plot. Write the journal entry for this payment in the space below.

Accepted Answer

The answer of On November 1st Nikle Company made a...

Question 14

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

Question 15

Posting a transaction twice will cause the trial balance totals to be equal.

Accepted Answer

A) True 
 B)False

Question 16

Owner's capital will be reduced by the amount in the drawing account.

Accepted Answer

A) True 
 B)False

Question 17

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 18

The process of transferring the debits and credits from the journal entries to the accounts is known as "updating the accounts".

Accepted Answer

A) True 
 B)False

Question 19

Which of the following owner's equity accounts follows the same debit and credit rules as liabilities?

Accepted Answer

A)  Expense accounts only 
B)  Drawing accounts only 
C)  Revenues accounts only 
D)  Expenses and drawing accounts 
A)  Expense accounts only 
B)  Drawing accounts only 
C)  Revenues accounts only 
D)  Expenses and drawing accounts

Question 20

The recording of cash payments from the cash account is done by entering the amount as a credit.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

A cash payment is recorded on the cash account as a

Transactions are initially entered into a record called a journal.

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

Expense accounts are increased by credits.

Which is the best explanation for this journal entry?

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

When an owner contributes equipment to the business, he or she retains ownership of the property.

A chart of accounts is

The balance of the account is determined by

When an accounts payable account is paid in cash, the owner's equity in the business decreases.

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

Revenue should be recognized when

On November 1st Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land plot. Write the journal entry for this payment in the space below.

Liability accounts are increased by debits.

Posting a transaction twice will cause the trial balance totals to be equal.

Owner's capital will be reduced by the amount in the drawing account.

The process of initially recording a business transaction is called

The process of transferring the debits and credits from the journal entries to the accounts is known as "updating the accounts".

Which of the following owner's equity accounts follows the same debit and credit rules as liabilities?

The recording of cash payments from the cash account is done by entering the amount as a credit.

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

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

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters