Question 1

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n):

Accepted Answer

A)   chart of accounts
B)   trial balance
C)   income statement
D)   balance sheet B

Question 2

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

Accepted Answer

A) True 
 B)False  False

Question 3

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A)   chart of accounts
B)   income statement
C)   balance sheet
D)   journal

Question 5

On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice.
(a) Provide the journal entry for the purchase on account.​
(b) Provide the journal entry for the payment of the invoice.

Accepted Answer

The answer of On October 10, Nikle Company purchased supplies...

Question 6

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

A)   asset, credit
B)   liability, credit
C)   stockholders' equity, debit
D)   revenue, credit

Question 7

The classification and normal balance of the accounts payable account is

Accepted Answer

A)   an asset with a credit balance
B)   a liability with a credit balance
C)   stockholders' equity with a credit balance
D)   revenue with a credit balance

Question 8

The increase side of an account is also the side of the normal balance.

Accepted Answer

A) True 
 B)False

Question 9

Net income will result when

Accepted Answer

A)   revenues (credits)  > expenses (debits) 
B)   revenues (debits)  > expenses (credits) 
C)   expenses (credits)  = revenues (debits) 
D)   revenues (credits)  = expenses (debits)

Question 10

McNally Industries has a condensed income statement as shown.  
 Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place.

Accepted Answer

A)   $32,500, 19.6%
B)   ($32,500) , (19.6%) 
C)   $32,500, 16.4%
D)   ($32,500) , (16.4%)

Question 11

Journalize the following selected transactions for January. Explanations may be omitted.  ​

Accepted Answer

The answer of Journalize the following selected transactions for January....

Question 12

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be

Accepted Answer

A)   
B)  
C)   
D)

Question 13

Analyze the effect of the following transactions on the accounting equation.  ​
Some of the possible effects of a transaction on the accounting equation are listed below:  ​
Put the appropriate letter next to each transaction.

Accepted Answer

The answer of Analyze the effect of the following transactions...

Question 14

Which of the following is not a useful step in finding errors on the trial balance?

Accepted Answer

A)   Determine the difference between debits and credits and look for the amount.
B)   Determine the difference between debits and credits and change any account to make the trial balance correct.
C)   Determine the difference between debits and credits, divide the amount by 2, and look for the amount.
D)   Determine the difference between debits and credits, divide the amount by 9, and if it divides evenly, look for a transposition or slide error.

Question 15

The chart of accounts is designed to

Accepted Answer

A)   alphabetize the accounts to make reading easier for financial statement users
B)   organize accounts in order of dollar amount to simplify the accounting information for users
C)   summarize the transactions and determine ending account balances
D)   meet the information needs of a company's managers and other users of its financial statements

Question 16

A credit may signify a

Accepted Answer

A)   decrease in assets
B)   decrease in liabilities
C)   decrease in common stock
D)   decrease in revenue

Question 17

Assets are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 18

The chart of accounts should be the same for each business.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following types of accounts have a normal credit balance?

Accepted Answer

A)   assets and liabilities
B)   liabilities and expenses
C)   revenues and common stock
D)   common stock and dividends

Question 20

The cash account will always be debited.

Accepted Answer

A) True 
 B)False

Exam 2: Double-Entry Accounting

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n) :

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

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

On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice. (a) Provide the journal entry for the purchase on account. (b) Provide the journal entry for the payment of the invoice.

Which of the following describes the classification and normal balance of the fees earned account?

The classification and normal balance of the accounts payable account is

The increase side of an account is also the side of the normal balance.

Net income will result when

McNally Industries has a condensed income statement as shown. Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place.

Journalize the following selected transactions for January. Explanations may be omitted.

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be

Analyze the effect of the following transactions on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.

Which of the following is not a useful step in finding errors on the trial balance?

The chart of accounts is designed to

A credit may signify a

Assets are increased with debits and decreased with credits.

The chart of accounts should be the same for each business.

Which of the following types of accounts have a normal credit balance?

The cash account will always be debited.

Exam 2: Double-Entry Accounting

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n) :

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

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

On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice. (a) Provide the journal entry for the purchase on account.​ (b) Provide the journal entry for the payment of the invoice.

Which of the following describes the classification and normal balance of the fees earned account?

The classification and normal balance of the accounts payable account is

The increase side of an account is also the side of the normal balance.

Net income will result when

McNally Industries has a condensed income statement as shown. Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place.

Journalize the following selected transactions for January. Explanations may be omitted. ​

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be

Analyze the effect of the following transactions on the accounting equation. ​ Some of the possible effects of a transaction on the accounting equation are listed below: ​ Put the appropriate letter next to each transaction.

Which of the following is not a useful step in finding errors on the trial balance?

The chart of accounts is designed to

A credit may signify a

Assets are increased with debits and decreased with credits.

The chart of accounts should be the same for each business.

Which of the following types of accounts have a normal credit balance?

The cash account will always be debited.

On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice. (a) Provide the journal entry for the purchase on account. (b) Provide the journal entry for the payment of the invoice.

Journalize the following selected transactions for January. Explanations may be omitted.

Analyze the effect of the following transactions on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.