Question 1

An error caused by recording $25,000 as $2,500 is a(n):

Accepted Answer

A)  switching error. 
B)  embezzlement. 
C)  slide. 
D)  transposition. 
A)  switching error. 
B)  embezzlement. 
C)  slide. 
D)  transposition.

Question 2

The order the financial statements are prepared is as follows:

Accepted Answer

A)  statement of owner's equity, income statement, balance sheet 
B)  income statement, balance sheet, statement of owner's equity 
C)  income statement, statement of owner's equity, balance sheet 
D)  balance sheet, income statement, statement of owner's equity 
A)  statement of owner's equity, income statement, balance sheet 
B)  income statement, balance sheet, statement of owner's equity 
C)  income statement, statement of owner's equity, balance sheet 
D)  balance sheet, income statement, statement of owner's equity

Question 3

Net income results when:

Accepted Answer

A)  total revenue is less than total expenses over the period. 
B)  total revenue exceeds total expenses over the period. 
C)  total revenue is less than total liabilities over the period. 
D)  total revenue exceeds total liabilities over the period. 
A)  total revenue is less than total expenses over the period. 
B)  total revenue exceeds total expenses over the period. 
C)  total revenue is less than total liabilities over the period. 
D)  total revenue exceeds total liabilities over the period.

Question 4

A verification of the equality of debits and credits in the ledger at the end of a fiscal period is called a balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

When a T account has several items on both sides, the balance of the account is written

Accepted Answer

A)  on the side with the greatest number of items. 
B)  on the side with the least number of items. 
C)  on the side with the larger total. 
D)  on the side with the smaller total. 
E)  in none of these locations. 
A)  on the side with the greatest number of items. 
B)  on the side with the least number of items. 
C)  on the side with the larger total. 
D)  on the side with the smaller total. 
E)  in none of these locations.

Question 6

Davis Company has the following accounts and balances at the end of the year: 
Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000
R.Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is the amount of total assets reported on the balance sheet?

Accepted Answer

A)  $1,480 
B)  $9,800 
C)  $3,080 
D)  $4,480 
A)  $1,480 
B)  $9,800 
C)  $3,080 
D)  $4,480

Question 7

The _______________ of a company is the resources owned by the organization at a point in time, offset by the claims against those resources and owner's equity.

Accepted Answer

A)  net income 
B)  financial statement 
C)  net loss 
D)  financial position 
A)  net income 
B)  financial statement 
C)  net loss 
D)  financial position

Question 8

Match the terms below with the correct definitions.
-A recording error involving the switching around of the digits of a number

Accepted Answer

A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry 
A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry

Question 9

The left side is always the debit side.

Accepted Answer

A) True 
 B)False

Question 10

Revenue has the effect of decreasing owner's equity.

Accepted Answer

A) True 
 B)False

Question 11

Jackson Company received cash on account from customers, $2,300. The accountant would record a

Accepted Answer

A)  debit to income from services, $2,300. 
B)  credit to income from services, $2,300. 
C)  debit to accounts receivable, $2,300. 
D)  credit to accounts receivable, $2,300. 
E)  credit to cash, $2,300. 
A)  debit to income from services, $2,300. 
B)  credit to income from services, $2,300. 
C)  debit to accounts receivable, $2,300. 
D)  credit to accounts receivable, $2,300. 
E)  credit to cash, $2,300.

Question 12

Which of the following is not true?

Accepted Answer

A)  The capital account would be increased with a debit. 
B)  The drawing account would be increased with a debit. 
C)  An asset account would be decreased with a credit. 
D)  A liability account would be increased with a credit. 
A)  The capital account would be increased with a debit. 
B)  The drawing account would be increased with a debit. 
C)  An asset account would be decreased with a credit. 
D)  A liability account would be increased with a credit.

Question 13

Which of the following is correct, assuming the following transaction: R. Dirk invested $20,000 cash in the business.

Accepted Answer

A)  Cash is debited. 
B)  Cash is credited. 
C)  R. Dirk, Capital is debited. 
D)  Income from Services is credited. 
A)  Cash is debited. 
B)  Cash is credited. 
C)  R. Dirk, Capital is debited. 
D)  Income from Services is credited.

Question 14

Davis Company has the following accounts and balances at the end of the year:
 Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000
R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is R. Davis, Capital, at the end of the year?

Accepted Answer

A)  $1,830 
B)  $3,080 
C)  $5,550 
D)  $3,880 
A)  $1,830 
B)  $3,080 
C)  $5,550 
D)  $3,880

Question 15

Match between columns
                        Premises:  To decrease Cash
 To increase Owner, Capital
 To decrease Accounts Payable
 To increase Salaries Expense
 To decrease Equipment
 To increase Revenue
 To decrease Accounts Receivable
 To increase Owner, Drawing
 To increase Prepaid Insurance
 To increase Accounts Payable

Accepted Answer

The Answer of debit entry and credit entry is...

Question 16

Which of the following is not true concerning T accounts?

Accepted Answer

A)  The right side of a revenue account is an increase. 
B)  The left side of an expense account is an increase. 
C)  The left side of an asset account is an increase. 
D)  The left side of a liability account is an increase. 
A)  The right side of a revenue account is an increase. 
B)  The left side of an expense account is an increase. 
C)  The left side of an asset account is an increase. 
D)  The left side of a liability account is an increase.

Question 17

List the main categories of accounts (as provided in a typical chart of accounts) and provide their specific normal balance.

Accepted Answer

Assets (DR), Liabilities (CR),

Question 18

A business buys office equipment for cash. What effect will this transaction have on the accounts?

Accepted Answer

A)  Debit an asset account and credit an expense account 
B)  Debit an asset account and credit an asset account 
C)  Debit an expense account and credit an asset account 
D)  Debit a liability account and credit an asset account 
E)  None of these 
A)  Debit an asset account and credit an expense account 
B)  Debit an asset account and credit an asset account 
C)  Debit an expense account and credit an asset account 
D)  Debit a liability account and credit an asset account 
E)  None of these

Question 19

Recording $520 as $5.20 is an example of a slide.

Accepted Answer

A) True 
 B)False

Question 20

The ___________ are the totals of each side of a T account that is normally recorded in small, pencil-written figures.

Accepted Answer

A)  balances 
B)  footings 
C)  figures 
D)  estimates 
A)  balances 
B)  footings 
C)  figures 
D)  estimates

An error caused by recording $25,000 as $2,500 is a(n):

The order the financial statements are prepared is as follows:

Net income results when:

A verification of the equality of debits and credits in the ledger at the end of a fiscal period is called a balance sheet.

When a T account has several items on both sides, the balance of the account is written

The _______________ of a company is the resources owned by the organization at a point in time, offset by the claims against those resources and owner's equity.

Match the terms below with the correct definitions. -A recording error involving the switching around of the digits of a number

The left side is always the debit side.

Revenue has the effect of decreasing owner's equity.

Jackson Company received cash on account from customers, $2,300. The accountant would record a

Which of the following is not true?

Which of the following is correct, assuming the following transaction: R. Dirk invested $20,000 cash in the business.

Which of the following is not true concerning T accounts?

List the main categories of accounts (as provided in a typical chart of accounts) and provide their specific normal balance.

A business buys office equipment for cash. What effect will this transaction have on the accounts?

Recording $520 as $5.20 is an example of a slide.

The ___________ are the totals of each side of a T account that is normally recorded in small, pencil-written figures.

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

An error caused by recording $25,000 as $2,500 is a(n):

The order the financial statements are prepared is as follows:

Net income results when:

A verification of the equality of debits and credits in the ledger at the end of a fiscal period is called a balance sheet.

When a T account has several items on both sides, the balance of the account is written

The _______________ of a company is the resources owned by the organization at a point in time, offset by the claims against those resources and owner's equity.

Match the terms below with the correct definitions. -A recording error involving the switching around of the digits of a number

The left side is always the debit side.

Revenue has the effect of decreasing owner's equity.

Jackson Company received cash on account from customers, $2,300. The accountant would record a

Which of the following is not true?

Which of the following is correct, assuming the following transaction: R. Dirk invested $20,000 cash in the business.

Which of the following is not true concerning T accounts?

List the main categories of accounts (as provided in a typical chart of accounts) and provide their specific normal balance.

A business buys office equipment for cash. What effect will this transaction have on the accounts?

Recording $520 as $5.20 is an example of a slide.

The ___________ are the totals of each side of a T account that is normally recorded in small, pencil-written figures.

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