Question 1

A transaction with more than one debit and/or more than one credit is called a compound entry.

Accepted Answer

A) True 
 B)False

Question 2

Match the terms below with the correct definitions.
  
-Inequality of the total debits and credits in the trial balance

Accepted Answer

The answer of Match the terms below with the correct...

Question 3

Income from Services is reported on which financial statement?

Accepted Answer

A) income statement 
B) statement of owner's equity 
C) balance sheet 
D) none of the answers listed 
A) income statement 
B) statement of owner's equity 
C) balance sheet 
D) none of the answers listed

Question 4

Revenue has the effect of decreasing owner's equity.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Errors can occur for which of the following reason(s)?

Accepted Answer

A) Arithmetic 
B) Recording only half an entry 
C) Recording two debits and no credits 
D) Recording incorrect amounts 
E) All of the answers listed 
A) Arithmetic 
B) Recording only half an entry 
C) Recording two debits and no credits 
D) Recording incorrect amounts 
E) All of the answers listed

Question 7

Accounts Receivable 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 8

List in order of preparation and explain the purpose of the three main financial statements, including what is on each statement.

Accepted Answer

Income Statement - Shows total revenue m

Question 9

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 10

The accountant recorded accounts payable as $45,000 when it should have been recorded as $4,500. 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 11

Which of the following is correct, assuming the following transaction: Kennedy Company received and paid the rent for the month.

Accepted Answer

A) Rent Expense is debited. 
B) Cash is debited. 
C) Rent Expense is credited. 
D) Accounts Payable is debited. 
A) Rent Expense is debited. 
B) Cash is debited. 
C) Rent Expense is credited. 
D) Accounts Payable is debited.

Question 12

In any transaction, the total dollar amount of debits must equal the total dollar amount of credits.

Accepted Answer

A) True 
 B)False

Question 13

Match the terms below with the correct definitions.
  
-Listing of the ending balances of all ledger accounts that proves the equality of total debits and credits

Accepted Answer

The answer of Match the terms below with the correct...

Question 14

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 15

The receipt of cash on account from a customer should be recorded as

Accepted Answer

A) a debit to Cash and a credit to Accounts Payable. 
B) a debit to Cash and a credit to Income from Services. 
C) a debit to Cash and a credit to Accounts Receivable. 
D) a debit to Cash and a credit to the Capital account. 
E) none of these. 
A) a debit to Cash and a credit to Accounts Payable. 
B) a debit to Cash and a credit to Income from Services. 
C) a debit to Cash and a credit to Accounts Receivable. 
D) a debit to Cash and a credit to the Capital account. 
E) none of these.

Question 16

If equipment costing $930 is bought by paying $300 as a down payment and the remaining $630 in 30 days, owner's equity is increased by $930.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is correct, assuming the following transaction: Nixon Company sold services on account.

Accepted Answer

A) Cash is credited. 
B) Accounts Receivable is credited. 
C) Income from Services is credited. 
D) Cash is debited. 
A) Cash is credited. 
B) Accounts Receivable is credited. 
C) Income from Services is credited. 
D) Cash is debited.

Question 18

The ________________ shows the financial position of a company.

Accepted Answer

A) income statement 
B) balance sheet 
C) statement of owner's equity 
D) none of the answers listed 
A) income statement 
B) balance sheet 
C) statement of owner's equity 
D) none of the answers listed

Question 19

Indicate whether each of the following changes in accounts would be a debit (D) or credit (C) entry.

Accepted Answer

The answer of Indicate whether each of the following changes...

Question 20

Which of the following classifications of accounts has/have a normal credit balance?

Accepted Answer

A) Drawing 
B) Revenues 
C) Liabilities 
D) Revenues and liabilities 
E) All of these 
A) Drawing 
B) Revenues 
C) Liabilities 
D) Revenues and liabilities 
E) All of these

A transaction with more than one debit and/or more than one credit is called a compound entry.

Match the terms below with the correct definitions. -Inequality of the total debits and credits in the trial balance

Income from Services is reported on which financial statement?

Revenue has the effect of decreasing owner's equity.

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

Errors can occur for which of the following reason(s)?

Accounts Receivable would be shown on the __________________.

List in order of preparation and explain the purpose of the three main financial statements, including what is on each statement.

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

The accountant recorded accounts payable as $45,000 when it should have been recorded as $4,500. This is an example of a ________________.

Which of the following is correct, assuming the following transaction: Kennedy Company received and paid the rent for the month.

In any transaction, the total dollar amount of debits must equal the total dollar amount of credits.

Match the terms below with the correct definitions. -Listing of the ending balances of all ledger accounts that proves the equality of total debits and credits

The last step in analyzing a business transaction is

The receipt of cash on account from a customer should be recorded as

If equipment costing $930 is bought by paying $300 as a down payment and the remaining $630 in 30 days, owner's equity is increased by $930.

Which of the following is correct, assuming the following transaction: Nixon Company sold services on account.

The ________________ shows the financial position of a company.

Indicate whether each of the following changes in accounts would be a debit (D) or credit (C) entry.

Which of the following classifications of accounts has/have a normal credit balance?

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 Including Appendix

Bank Accounts and Cash Funds

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

Filters

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

A transaction with more than one debit and/or more than one credit is called a compound entry.

Match the terms below with the correct definitions. -Inequality of the total debits and credits in the trial balance

Income from Services is reported on which financial statement?

Revenue has the effect of decreasing owner's equity.

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

Errors can occur for which of the following reason(s)?

Accounts Receivable would be shown on the __________________.

List in order of preparation and explain the purpose of the three main financial statements, including what is on each statement.

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

The accountant recorded accounts payable as $45,000 when it should have been recorded as $4,500. This is an example of a ________________.

Which of the following is correct, assuming the following transaction: Kennedy Company received and paid the rent for the month.

In any transaction, the total dollar amount of debits must equal the total dollar amount of credits.

Match the terms below with the correct definitions. -Listing of the ending balances of all ledger accounts that proves the equality of total debits and credits

The last step in analyzing a business transaction is

The receipt of cash on account from a customer should be recorded as

If equipment costing $930 is bought by paying $300 as a down payment and the remaining $630 in 30 days, owner's equity is increased by $930.

Which of the following is correct, assuming the following transaction: Nixon Company sold services on account.

The ________________ shows the financial position of a company.

Indicate whether each of the following changes in accounts would be a debit (D) or credit (C) entry.

Which of the following classifications of accounts has/have a normal credit balance?

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 Including Appendix

Bank Accounts and Cash Funds

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

Filters