Question 1

Withdrawals are a type of transaction that affects equity.

Accepted Answer

A) True 
 B)False

Question 2

A column in journals and accounts used to cross reference journal and ledger entries is called the

Accepted Answer

A)  account balance 
B)  debit 
C)  posting reference 
D)  credit 
E)  description 
A)  account balance 
B)  debit 
C)  posting reference 
D)  credit 
E)  description

Question 3

Prepaid Insurance is an expense account which is used for recording expenses that have been paid in advance.

Accepted Answer

A) True 
 B)False

Question 4

Goods sold on credit to customers are called accounts payable.

Accepted Answer

A) True 
 B)False

Question 5

The most flexible type of journal that can be used to record any kind of transaction is called a

Accepted Answer

A)  Ledger 
B)  Trial balance 
C)  Chart of accounts 
D)  General Journal 
E)  Balance column account 
A)  Ledger 
B)  Trial balance 
C)  Chart of accounts 
D)  General Journal 
E)  Balance column account

Question 6

The following are all of the accounts of Vita Mix Company that have a balance at the end of August, the company's first month of operation:

Accepted Answer

The answer of The following are all of the accounts...

Question 7

If a company sells products and receives from the customer a formal written promise to pay a definite sum of money on demand or on a defined future date (or dates), the seller should debit the promised amount to Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 8

Dave Shurek started Hindsight Electric in February 2020. Hindsight completed the following transactions during February of the current year:
   Prepare general journal entries to record the transactions. Include a brief description for each entry.

Accepted Answer

The answer of Dave Shurek started Hindsight Electric in February...

Question 9

A debit entry

Accepted Answer

A)  increases asset and expense account 
B)  decreases liability and equity accounts 
C)  increases the owner's withdrawals account 
D)  decreases revenue accounts 
E)  All of these 
A)  increases asset and expense account 
B)  decreases liability and equity accounts 
C)  increases the owner's withdrawals account 
D)  decreases revenue accounts 
E)  All of these

Question 10

The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space provided next to each account write the letters, IS or BS, that identify the statement on which the account appears.

Accepted Answer

(1) BS (2) IS (3) BS

Question 11

On June 30, the Cash account of Majeau Company had a normal balance of $4,300. During July the account was debited for a total of $3,400 and credited for a total of $3,600. What was the balance in the Cash account on August 1?

Accepted Answer

A)  $-0 
B)  $4,100 debit 
C)  $3,400 credit 
D)  $3,400 debit 
E)  $4,100 credit 
A)  $-0 
B)  $4,100 debit 
C)  $3,400 credit 
D)  $3,400 debit 
E)  $4,100 credit

Question 12

The balances for the accounts of Millie's Maintenance Co. for the year ended December 31, 2020 are shown below. Each account shown has a normal balance.
   *The ending balance of the capital account is $20,000; the only addition to the account for the year was profit. Calculate the correct balances for Cash and Millie, Withdrawals and prepare a trial balance.

Accepted Answer

The answer of The balances for the accounts of Millie's...

Question 13

The normal balance of an account refers to the debit or credit side where increases are recorded.

Accepted Answer

A) True 
 B)False

Question 14

An abnormal balance in an account refers to a balance on the side where decreases are recorded.

Accepted Answer

A) True 
 B)False

Question 15

During the month of November, Duffee Company had cash receipts of $3,500 and paid out $1,000 for expenses. The November 30th cash balance was $5,300. What was the cash balance on November 1?

Accepted Answer

A)  $1,800 
B)  $2,800 
C)  $4,300 
D)  $5,800 
E)  $7,300 
A)  $1,800 
B)  $2,800 
C)  $4,300 
D)  $5,800 
E)  $7,300

Question 16

David Thomas is a computer consultant and software engineer. Below are the names of several accounts in his ledger with each account name preceded by a number. Following the account names are several transactions completed by Mr. Thomas. Indicate the accounts debited and credited in recording each transaction by placing the proper account numbers in the boxes to the right of each transaction.

Accepted Answer

(1) debit 3, credit 8 (2) debi

Question 17

The chart of accounts is a list of all the accounts used by a company.

Accepted Answer

A) True 
 B)False

Question 18

A credit purchase of a business expense item should be recorded with a debit to an expense account and a credit to Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 19

If an error is discovered in either the journal or the ledger, it must be corrected by erasing the incorrect amount and entering the corrected amount.

Accepted Answer

A) True 
 B)False

Question 20

Posting is the process of copying the debit and credit amounts from a journal to the general ledger accounts.

Accepted Answer

A) True 
 B)False

Withdrawals are a type of transaction that affects equity.

A column in journals and accounts used to cross reference journal and ledger entries is called the

Prepaid Insurance is an expense account which is used for recording expenses that have been paid in advance.

Goods sold on credit to customers are called accounts payable.

The most flexible type of journal that can be used to record any kind of transaction is called a

The following are all of the accounts of Vita Mix Company that have a balance at the end of August, the company's first month of operation:

If a company sells products and receives from the customer a formal written promise to pay a definite sum of money on demand or on a defined future date (or dates), the seller should debit the promised amount to Accounts Receivable.

Dave Shurek started Hindsight Electric in February 2020. Hindsight completed the following transactions during February of the current year: Prepare general journal entries to record the transactions. Include a brief description for each entry.

A debit entry

The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space provided next to each account write the letters, IS or BS, that identify the statement on which the account appears.

On June 30, the Cash account of Majeau Company had a normal balance of $4,300. During July the account was debited for a total of $3,400 and credited for a total of $3,600. What was the balance in the Cash account on August 1?

The normal balance of an account refers to the debit or credit side where increases are recorded.

An abnormal balance in an account refers to a balance on the side where decreases are recorded.

During the month of November, Duffee Company had cash receipts of $3,500 and paid out $1,000 for expenses. The November 30^th cash balance was $5,300. What was the cash balance on November 1?

The chart of accounts is a list of all the accounts used by a company.

A credit purchase of a business expense item should be recorded with a debit to an expense account and a credit to Accounts Payable.

If an error is discovered in either the journal or the ledger, it must be corrected by erasing the incorrect amount and entering the corrected amount.

Posting is the process of copying the debit and credit amounts from a journal to the general ledger accounts.

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters

Exam 2: Analyzing and Recording Transactions

Withdrawals are a type of transaction that affects equity.

A column in journals and accounts used to cross reference journal and ledger entries is called the

Prepaid Insurance is an expense account which is used for recording expenses that have been paid in advance.

Goods sold on credit to customers are called accounts payable.

The most flexible type of journal that can be used to record any kind of transaction is called a

The following are all of the accounts of Vita Mix Company that have a balance at the end of August, the company's first month of operation:

If a company sells products and receives from the customer a formal written promise to pay a definite sum of money on demand or on a defined future date (or dates), the seller should debit the promised amount to Accounts Receivable.

Dave Shurek started Hindsight Electric in February 2020. Hindsight completed the following transactions during February of the current year: Prepare general journal entries to record the transactions. Include a brief description for each entry.

A debit entry

The following accounts appear on either the Income Statement (IS) or Balance Sheet (BS). In the space provided next to each account write the letters, IS or BS, that identify the statement on which the account appears.

On June 30, the Cash account of Majeau Company had a normal balance of $4,300. During July the account was debited for a total of $3,400 and credited for a total of $3,600. What was the balance in the Cash account on August 1?

The normal balance of an account refers to the debit or credit side where increases are recorded.

An abnormal balance in an account refers to a balance on the side where decreases are recorded.

During the month of November, Duffee Company had cash receipts of $3,500 and paid out $1,000 for expenses. The November 30th cash balance was $5,300. What was the cash balance on November 1?

The chart of accounts is a list of all the accounts used by a company.

A credit purchase of a business expense item should be recorded with a debit to an expense account and a credit to Accounts Payable.

If an error is discovered in either the journal or the ledger, it must be corrected by erasing the incorrect amount and entering the corrected amount.

Posting is the process of copying the debit and credit amounts from a journal to the general ledger accounts.

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters

During the month of November, Duffee Company had cash receipts of $3,500 and paid out $1,000 for expenses. The November 30^th cash balance was $5,300. What was the cash balance on November 1?