Question 1

Identify the statement below that is true.

Accepted Answer

A) If the trial balance is in balance,it proves that no errors have been made in recording and posting transactions. 
B) The trial balance is a book of original entry. 
C) Another name for the trial balance is the chart of accounts. 
D) The trial balance is a list of all accounts from the ledger with their balances at a point in time. 
E) The trial balance is another name for the balance sheet as long as debits balance with credits. 
A) If the trial balance is in balance,it proves that no errors have been made in recording and posting transactions. 
B) The trial balance is a book of original entry. 
C) Another name for the trial balance is the chart of accounts. 
D) The trial balance is a list of all accounts from the ledger with their balances at a point in time. 
E) The trial balance is another name for the balance sheet as long as debits balance with credits.

Question 2

Identify the correct formula below used to calculate the debt ratio.

Accepted Answer

A) Total Equity/Total Liabilities. 
B) Total Liabilities/Total Equity. 
C) Total Liabilities/Total Assets. 
D) Total Assets/Total Liabilities. 
E) Total Equity/Total Assets. 
A) Total Equity/Total Liabilities. 
B) Total Liabilities/Total Equity. 
C) Total Liabilities/Total Assets. 
D) Total Assets/Total Liabilities. 
E) Total Equity/Total Assets.

Question 3

A company's list of accounts and the identification numbers assigned to each account is called a:

Accepted Answer

A) Source document. 
B) Journal. 
C) Trial balance. 
D) Chart of accounts. 
E) General Journal. 
A) Source document. 
B) Journal. 
C) Trial balance. 
D) Chart of accounts. 
E) General Journal.

Question 4

A customer's promise to pay on credit is classified as an account payable by the seller.

Accepted Answer

A) True 
 B)False

Question 5

A credit entry:

Accepted Answer

A) Increases asset and expense accounts,and decreases liability,owner's capital,and revenue accounts. 
B) Is always a decrease in an account. 
C) Decreases asset and expense accounts,and increases liability,owner's capital,and revenue accounts. 
D) Is recorded on the left side of a T-account. 
E) Is always an increase in an account. 
A) Increases asset and expense accounts,and decreases liability,owner's capital,and revenue accounts. 
B) Is always a decrease in an account. 
C) Decreases asset and expense accounts,and increases liability,owner's capital,and revenue accounts. 
D) Is recorded on the left side of a T-account. 
E) Is always an increase in an account.

Question 6

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):

Accepted Answer

A) Account. 
B) Trial balance. 
C) Journal. 
D) T-account. 
E) Balance column account. 
A) Account. 
B) Trial balance. 
C) Journal. 
D) T-account. 
E) Balance column account.

Question 7

Identify the statement below that is incorrect.

Accepted Answer

A) The normal balance of accounts receivable is a debit. 
B) The normal balance of owner's withdrawals is a debit. 
C) The normal balance of unearned revenues is a credit. 
D) The normal balance of an expense account is a credit. 
E) The normal balance of the owner's capital account is a credit. 
A) The normal balance of accounts receivable is a debit. 
B) The normal balance of owner's withdrawals is a debit. 
C) The normal balance of unearned revenues is a credit. 
D) The normal balance of an expense account is a credit. 
E) The normal balance of the owner's capital account is a credit.

Question 8

The second step in the analyzing and recording process is to record the transactions and events in the book of original entry,called the ______________.

Accepted Answer

The answer of The second step in the analyzing and...

Question 9

When a company provides services for which cash will not be received until some future date,the company should record the amount charged as accounts receivable.

Accepted Answer

A) True 
 B)False

Question 10

A report that lists a business's accounts and their balances,in which the total debit balances should equal the total credit balances,is called a(n):

Accepted Answer

A) Account balance. 
B) Trial balance. 
C) Ledger. 
D) Chart of accounts. 
E) General Journal. 
A) Account balance. 
B) Trial balance. 
C) Ledger. 
D) Chart of accounts. 
E) General Journal.

Question 11

The balance column in a ledger account is:

Accepted Answer

A) An account entered on the balance sheet. 
B) A column for showing the balance of the account after each entry is posted. 
C) Another name for the withdrawals account. 
D) An account used to record the transfers of assets from a business to its owner. 
E) A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction. 
A) An account entered on the balance sheet. 
B) A column for showing the balance of the account after each entry is posted. 
C) Another name for the withdrawals account. 
D) An account used to record the transfers of assets from a business to its owner. 
E) A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.

Question 12

A ____________ gives a complete record of each transaction in one place,and shows debits and credits for each transaction.

Accepted Answer

The answer of A ____________ gives a complete record of...

Question 13

A general journal is:

Accepted Answer

A) A ledger in which amounts are posted from a balance column account. 
B) Not required if T-accounts are used. 
C) A complete record of all transactions in chronological order from which transaction amounts are posted to the ledger accounts. 
D) Not necessary in electronic accounting systems. 
E) A book of final entry because financial statements are prepared from it. 
A) A ledger in which amounts are posted from a balance column account. 
B) Not required if T-accounts are used. 
C) A complete record of all transactions in chronological order from which transaction amounts are posted to the ledger accounts. 
D) Not necessary in electronic accounting systems. 
E) A book of final entry because financial statements are prepared from it.

Question 14

A general journal gives a complete record of each transaction in one place,and shows the debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 15

After preparing an (unadjusted)trial balance at year-end,R.Chang of Chang Window Company discovered the following errors:
1.Cash payment of the $225 telephone bill for December was recorded twice.
2.Cash payment of a note payable was recorded as a debit to Cash and a debit to Notes Payable for $1,000.
3.A $900 cash withdrawal by the owner was recorded to the correct accounts as $90.
4.An additional investment of $5,000 cash by the owner was recorded as a debit to R,Chang,Capital and a credit to Cash.
5.A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry.
Using the form below,indicate whether the error would cause the trial balance to be out of balance by placing an X in either the yes or no column.Would the error cause the trial balance to be out of balance?   Would the error cause the trial balance to be out of balance?

Accepted Answer

@#IMG-DLM& Yes,the t

Question 16

A company's chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

Accepted Answer

A) True 
 B)False

Question 17

Rowdy Bolton began Bolton Office Services in October and during that month completed these transactions:
a.Invested $10,000 cash,and $15,000 of computer equipment.
b.Paid $500 cash for an insurance premium covering the next 12 months.
c.Completed a word processing assignment for a customer and collected $1,000 cash.
d.Paid $200 cash for office supplies.
e.Paid $2,000 for October's rent.
Prepare journal entries to record the above transactions.Explanations are unnecessary.

Accepted Answer

The answer of Rowdy Bolton began Bolton Office Services in...

Question 18

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Accepted Answer

The answer of For each of the accounts in the...

Question 19

Transactions are recorded first in the ledger and then transferred to the journal.

Accepted Answer

A) True 
 B)False

Question 20

A credit is used to record an increase in all of the following accounts except:

Accepted Answer

A) Accounts Payable 
B) Service Revenue 
C) Unearned Revenue 
D) Wages Expense 
E) Owner's Capital 
A) Accounts Payable 
B) Service Revenue 
C) Unearned Revenue 
D) Wages Expense 
E) Owner's Capital

Exam 2: Analyzing and Recording Transactions

Identify the statement below that is true.

Identify the correct formula below used to calculate the debt ratio.

A company's list of accounts and the identification numbers assigned to each account is called a:

A customer's promise to pay on credit is classified as an account payable by the seller.

A credit entry:

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):

Identify the statement below that is incorrect.

The second step in the analyzing and recording process is to record the transactions and events in the book of original entry,called the ______________.

When a company provides services for which cash will not be received until some future date,the company should record the amount charged as accounts receivable.

A report that lists a business's accounts and their balances,in which the total debit balances should equal the total credit balances,is called a(n):

The balance column in a ledger account is:

A ____________ gives a complete record of each transaction in one place,and shows debits and credits for each transaction.

A general journal is:

A general journal gives a complete record of each transaction in one place,and shows the debits and credits for each transaction.

A company's chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

For each of the accounts in the following table (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Transactions are recorded first in the ledger and then transferred to the journal.

A credit is used to record an increase in all of the following accounts except:

Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

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