Question 1

The plus side of a T account represents the:

Accepted Answer

A)  normal balance of that account. 
B)  double balance of that account. 
C)  trial balance of that account. 
D)  footings balance of that account. 
E)  standard balance of that account. 
A)  normal balance of that account. 
B)  double balance of that account. 
C)  trial balance of that account. 
D)  footings balance of that account. 
E)  standard balance of that account.

Question 2

Which of the following is correct concerning the time period reported on financial statements?

Accepted Answer

A)  The balance sheet is reported as of a period of time. 
B)  The income statement is reported as of a specific date. 
C)  The statement of owner's equity is reported as of a specific date. 
D)  The income statement is reported as of a period of time. 
A)  The balance sheet is reported as of a period of time. 
B)  The income statement is reported as of a specific date. 
C)  The statement of owner's equity is reported as of a specific date. 
D)  The income statement is reported as of a period of time.

Question 3

The accountant recorded income from services as $4,500 when it should have been recorded as $4,050. This is an example of a ________________.

Accepted Answer

A)  matching error 
B)  footing 
C)  slide 
D)  transposition 
A)  matching error 
B)  footing 
C)  slide 
D)  transposition

Question 4

Match between columns
                        Premises:  Accounts Payable
 Accounts Receivable
 Advertising Expense
 Cash
 Equipment
 Income from Tours
 Increase in Capital
 Investment during month
 J. Collins, Capital
 J. Collins, Drawing
 Prepaid Insurance
 Wages Expense

Accepted Answer

The Answer of balance sheet and income statement and neither is...

Question 5

To locate an error in a trial balance,

Accepted Answer

A)  re-add. 
B)  look for the correct location of normal balances. 
C)  verify figures transferred from the account to the trial balance. 
D)  check footings and balances of the accounts. 
E)  do all of these. 
A)  re-add. 
B)  look for the correct location of normal balances. 
C)  verify figures transferred from the account to the trial balance. 
D)  check footings and balances of the accounts. 
E)  do all of these.

Question 6

The Accounts Payable T account shows the following 
$1,200, debit
$3,500, debit
$8,240, credit
$100, credit
What is the balance of the account?

Accepted Answer

A)  $8,340, credit 
B)  $8,340, debit 
C)  $4,700, debit 
D)  $3,640, debit 
E)  $3,640, credit 
A)  $8,340, credit 
B)  $8,340, debit 
C)  $4,700, debit 
D)  $3,640, debit 
E)  $3,640, credit

Question 7

A trial balance checks the equality of debits and credits.

Accepted Answer

A) True 
 B)False

Question 8

Classify each of the following items as to whether they would appear on a balance sheet (BS), income statement (IS), or neither (N).
 ___Accounts Payable
___Accounts Receivable
___Advertising Expense
___Cash
___Equipment
___Income from Tours
___Increase in Capital
___Investment during month
___J. Collins, Capital
___J. Collins, Drawing
___Frepaid Insurance
___Wages Expense

Accepted Answer

None

Question 9

Which of the following describes the classification and normal balance of H. Gale, Capital?

Accepted Answer

A)  Asset, debit 
B)  Revenue, credit 
C)  Owner's equity, debit 
D)  Expense, debit 
E)  None of these 
A)  Asset, debit 
B)  Revenue, credit 
C)  Owner's equity, debit 
D)  Expense, debit 
E)  None of these

Question 10

An increase in an expense is recorded as a debit.

Accepted Answer

A) True 
 B)False

Question 11

The trial balance will not expose which of the following problems?

Accepted Answer

A)  Recording half an entry 
B)  Leaving out an entire entry 
C)  Recording both halves of an entry on the same side 
D)  Recording half an entry and leaving out an entire entry 
E)  Recording half an entry and recording both halves of an entry on the same side 
A)  Recording half an entry 
B)  Leaving out an entire entry 
C)  Recording both halves of an entry on the same side 
D)  Recording half an entry and leaving out an entire entry 
E)  Recording half an entry and recording both halves of an entry on the same side

Question 12

Which of the following is true?

Accepted Answer

A)  An asset account would be decreased with a debit. 
B)  A liability account would be increased with a debit. 
C)  A revenue account would be increased with a credit. 
D)  An expense account would be increased with a credit. 
A)  An asset account would be decreased with a debit. 
B)  A liability account would be increased with a debit. 
C)  A revenue account would be increased with a credit. 
D)  An expense account would be increased with a credit.

Question 13

The last step in analyzing a business transaction is

Accepted Answer

A)  decide which accounts are involved. 
B)  check to see if the equation is in balance. 
C)  write the transaction as a debit and credit. 
D)  classify the accounts involved. 
A)  decide which accounts are involved. 
B)  check to see if the equation is in balance. 
C)  write the transaction as a debit and credit. 
D)  classify the accounts involved.

Question 14

The second step in the analytical phase of accounting is

Accepted Answer

A)  to determine whether there is an increase or a decrease in the accounts. 
B)  to determine which accounts are involved. 
C)  to formulate the entry as a debit to one account and as a credit to another account. 
D)  to identify the classification of the accounts involved. 
E)  none of these. 
A)  to determine whether there is an increase or a decrease in the accounts. 
B)  to determine which accounts are involved. 
C)  to formulate the entry as a debit to one account and as a credit to another account. 
D)  to identify the classification of the accounts involved. 
E)  none of these.

Question 15

Accounts Payable would be shown on the ___________________.

Accepted Answer

A)  debit side of the trial balance 
B)  credit side of the trial balance 
C)  not on the trial balance 
D)  debit and credit side of the trial balance 
A)  debit side of the trial balance 
B)  credit side of the trial balance 
C)  not on the trial balance 
D)  debit and credit side of the trial balance

Question 16

Ready Company received a bill for advertising. The accountant would record a

Accepted Answer

A)  credit to cash. 
B)  credit to accounts receivable. 
C)  credit to accounts payable. 
D)  credit to advertising expense. 
A)  credit to cash. 
B)  credit to accounts receivable. 
C)  credit to accounts payable. 
D)  credit to advertising expense.

Question 17

Which of the following is correct?

Accepted Answer

A)  Debit is the normal balance of the accounts payable account. 
B)  Credit is the normal balance of the accounts receivable account. 
C)  Debit is the normal balance of the Income from Services account. 
D)  Debit is the normal balance of the Drawing account. 
A)  Debit is the normal balance of the accounts payable account. 
B)  Credit is the normal balance of the accounts receivable account. 
C)  Debit is the normal balance of the Income from Services account. 
D)  Debit is the normal balance of the Drawing account.

Question 18

The _____________ of the balance sheet requires that the assets are placed at the top and liabilities and owner's equity are placed below.

Accepted Answer

A)  financial position 
B)  report form 
C)  horizontal form 
D)  vertical form 
A)  financial position 
B)  report form 
C)  horizontal form 
D)  vertical form

Question 19

The connecting link between the statement of owner's equity and the balance sheet is the owner's withdrawals.

Accepted Answer

A) True 
 B)False

Question 20

Withdrawals of assets from a business by the owners are considered to be expenses.

Accepted Answer

A) True 
 B)False

The plus side of a T account represents the:

Which of the following is correct concerning the time period reported on financial statements?

The accountant recorded income from services as $4,500 when it should have been recorded as $4,050. This is an example of a ________________.

To locate an error in a trial balance,

The Accounts Payable T account shows the following $1,200, debit $3,500, debit $8,240, credit $100, credit What is the balance of the account?

A trial balance checks the equality of debits and credits.

Which of the following describes the classification and normal balance of H. Gale, Capital?

An increase in an expense is recorded as a debit.

The trial balance will not expose which of the following problems?

Which of the following is true?

The last step in analyzing a business transaction is

The second step in the analytical phase of accounting is

Accounts Payable would be shown on the ___________________.

Ready Company received a bill for advertising. The accountant would record a

Which of the following is correct?

The _____________ of the balance sheet requires that the assets are placed at the top and liabilities and owner's equity are placed below.

The connecting link between the statement of owner's equity and the balance sheet is the owner's withdrawals.

Withdrawals of assets from a business by the owners are considered to be expenses.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 2: T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The plus side of a T account represents the:

Which of the following is correct concerning the time period reported on financial statements?

The accountant recorded income from services as $4,500 when it should have been recorded as $4,050. This is an example of a ________________.

To locate an error in a trial balance,

The Accounts Payable T account shows the following $1,200, debit $3,500, debit $8,240, credit $100, credit What is the balance of the account?

A trial balance checks the equality of debits and credits.

Which of the following describes the classification and normal balance of H. Gale, Capital?

An increase in an expense is recorded as a debit.

The trial balance will not expose which of the following problems?

Which of the following is true?

The last step in analyzing a business transaction is

The second step in the analytical phase of accounting is

Accounts Payable would be shown on the ___________________.

Ready Company received a bill for advertising. The accountant would record a

Which of the following is correct?

The _____________ of the balance sheet requires that the assets are placed at the top and liabilities and owner's equity are placed below.

The connecting link between the statement of owner's equity and the balance sheet is the owner's withdrawals.

Withdrawals of assets from a business by the owners are considered to be expenses.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters