Question 1

The general journal provides a place for recording

Accepted Answer

A)  the transaction date 
B)  the names of the accounts involved 
C)  the amount of each debit and credit 
D)  an explanation of the transaction 
E)  All of these 
A)  the transaction date 
B)  the names of the accounts involved 
C)  the amount of each debit and credit 
D)  an explanation of the transaction 
E)  All of these

Question 2

The left side of a T-account is always the credit side, while the right side is always the debit side.

Accepted Answer

A) True 
 B)False

Question 3

A receipt of $12,600 cash from a customer as a payment on their account was incorrectly credited to Rent Revenue. What is the effect of this error on the financial statements of the company?

Accepted Answer

A)  Assets are understated by $12,600 and owners' equity is understated by $12,600. 
B)  Assets are overstated by $12,600 and owners' equity is overstated by $12,600. 
C)  Assets are overstated by $25,200 and owners' equity is overstated by $25,200. 
D)  Assets are understated by $12,600 and liabilities are understated by $12,600. 
E)  Assets are understated by $25,200 and owners' equity is understated by $25,200. 
A)  Assets are understated by $12,600 and owners' equity is understated by $12,600. 
B)  Assets are overstated by $12,600 and owners' equity is overstated by $12,600. 
C)  Assets are overstated by $25,200 and owners' equity is overstated by $25,200. 
D)  Assets are understated by $12,600 and liabilities are understated by $12,600. 
E)  Assets are understated by $25,200 and owners' equity is understated by $25,200.

Question 4

The total dollar value of all debits and credits recorded in a journal entry must be equal.

Accepted Answer

A) True 
 B)False

Question 5

What is a simple account form widely used in accounting education to illustrate how debits and credits work is called?

Accepted Answer

A)  Withdrawals account 
B)  Capital account 
C)  Ledger 
D)  T-account 
E)  Balance column account 
A)  Withdrawals account 
B)  Capital account 
C)  Ledger 
D)  T-account 
E)  Balance column account

Question 6

Because they decrease equity, withdrawals made by a business owner are credited to his/her Withdrawals account.

Accepted Answer

A) True 
 B)False

Question 7

A credit entry

Accepted Answer

A)  increases asset and expense accounts, or decreases liability, equity, and revenue accounts 
B)  Is recorded on the left side of a T-account 
C)  Decreases asset and expense accounts, or increases liability, equity, and revenue account 
D)  Decreases asset, expense and revenue accounts. 
E)  Increases the withdrawals account 
A)  increases asset and expense accounts, or decreases liability, equity, and revenue accounts 
B)  Is recorded on the left side of a T-account 
C)  Decreases asset and expense accounts, or increases liability, equity, and revenue account 
D)  Decreases asset, expense and revenue accounts. 
E)  Increases the withdrawals account

Question 8

All increases and decreases in cash are not necessarily recorded in the Cash account.

Accepted Answer

A) True 
 B)False

Question 9

If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with an entry to

Accepted Answer

A)  debit Salary Expense and credit cash. 
B)  debit Girard Don, Salary and credit cash. 
C)  debit cash and credit Girard Don, withdrawals 
D)  debit Girard Don, capital and credit cash 
E)  debit Girard Don, withdrawals and credit cash 
A)  debit Salary Expense and credit cash. 
B)  debit Girard Don, Salary and credit cash. 
C)  debit cash and credit Girard Don, withdrawals 
D)  debit Girard Don, capital and credit cash 
E)  debit Girard Don, withdrawals and credit cash

Question 10

Which of the following statements is incorrect?

Accepted Answer

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

Question 11

When a company sells services in which cash will not be received until some future date, the company should credit an unearned revenues account for the amount charged to the customer.

Accepted Answer

A) True 
 B)False

Question 12

Explain the recording and posting processes.

Accepted Answer

Information from business transactions i

Question 13

An account used to record the owner's investments in the business plus any more or less permanent changes in the equity is called a(n)

Accepted Answer

A)  withdrawals account 
B)  capital account 
C)  asset account 
D)  expense account 
E)  revenue account 
A)  withdrawals account 
B)  capital account 
C)  asset account 
D)  expense account 
E)  revenue account

Question 14

If, on a trial balance, the total of the debits is $7,500 and the total of the credits is $7,419, the difference could have been caused by

Accepted Answer

A)  An error in copying an account balance from the ledger to the trial balance 
B)  A transposition error 
C)  A sliding error 
D)  Posting only one side of an entry 
E)  All of these 
A)  An error in copying an account balance from the ledger to the trial balance 
B)  A transposition error 
C)  A sliding error 
D)  Posting only one side of an entry 
E)  All of these

Question 15

Of the following accounts, the one that normally has a credit balance is

Accepted Answer

A)  cash 
B)  office equipment 
C)  sales salaries payable 
D)  Ted Neal, withdrawals 
E)  sales salaries expense 
A)  cash 
B)  office equipment 
C)  sales salaries payable 
D)  Ted Neal, withdrawals 
E)  sales salaries expense

Question 16

A general journal entry usually includes information about the date of a transaction, titles of affected accounts, dollar amount of each debit and credit and an explanation of the transaction.

Accepted Answer

A) True 
 B)False

Question 17

An account balance is

Accepted Answer

A)  the total of the credit side of the account 
B)  the total of the debit side of the account 
C)  the difference between the increases (including the beginning balance) and decreases recorded in the account 
D)  the same as the balance sheet equation 
E)  not used in the real world 
A)  the total of the credit side of the account 
B)  the total of the debit side of the account 
C)  the difference between the increases (including the beginning balance) and decreases recorded in the account 
D)  the same as the balance sheet equation 
E)  not used in the real world

Question 18

A transaction that decreases an asset account and increases a liability account must also affect another account.

Accepted Answer

A) True 
 B)False

Question 19

The process of copying journal information to the ledger is called

Accepted Answer

A)  double-entering 
B)  posting 
C)  an internal business transaction 
D)  journalizing 
E)  an external business transaction 
A)  double-entering 
B)  posting 
C)  an internal business transaction 
D)  journalizing 
E)  an external business transaction

Question 20

A place or location within an accounting system in which the increases and decreases in a specific asset, liability, or equity item is recorded and stored is called a(n)

Accepted Answer

A)  journal 
B)  ledge 
C)  trial balance 
D)  account 
E)  chart of accounts 
A)  journal 
B)  ledge 
C)  trial balance 
D)  account 
E)  chart of accounts

The general journal provides a place for recording

The left side of a T-account is always the credit side, while the right side is always the debit side.

A receipt of $12,600 cash from a customer as a payment on their account was incorrectly credited to Rent Revenue. What is the effect of this error on the financial statements of the company?

The total dollar value of all debits and credits recorded in a journal entry must be equal.

What is a simple account form widely used in accounting education to illustrate how debits and credits work is called?

Because they decrease equity, withdrawals made by a business owner are credited to his/her Withdrawals account.

A credit entry

All increases and decreases in cash are not necessarily recorded in the Cash account.

If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with an entry to

Which of the following statements is incorrect?

When a company sells services in which cash will not be received until some future date, the company should credit an unearned revenues account for the amount charged to the customer.

Explain the recording and posting processes.

An account used to record the owner's investments in the business plus any more or less permanent changes in the equity is called a(n)

If, on a trial balance, the total of the debits is $7,500 and the total of the credits is $7,419, the difference could have been caused by

Of the following accounts, the one that normally has a credit balance is

A general journal entry usually includes information about the date of a transaction, titles of affected accounts, dollar amount of each debit and credit and an explanation of the transaction.

An account balance is

A transaction that decreases an asset account and increases a liability account must also affect another account.

The process of copying journal information to the ledger is called

A place or location within an accounting system in which the increases and decreases in a specific asset, liability, or equity item is recorded and stored is called a(n)

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

The general journal provides a place for recording

The left side of a T-account is always the credit side, while the right side is always the debit side.

A receipt of $12,600 cash from a customer as a payment on their account was incorrectly credited to Rent Revenue. What is the effect of this error on the financial statements of the company?

The total dollar value of all debits and credits recorded in a journal entry must be equal.

What is a simple account form widely used in accounting education to illustrate how debits and credits work is called?

Because they decrease equity, withdrawals made by a business owner are credited to his/her Withdrawals account.

A credit entry

All increases and decreases in cash are not necessarily recorded in the Cash account.

If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with an entry to

Which of the following statements is incorrect?

When a company sells services in which cash will not be received until some future date, the company should credit an unearned revenues account for the amount charged to the customer.

Explain the recording and posting processes.

An account used to record the owner's investments in the business plus any more or less permanent changes in the equity is called a(n)

If, on a trial balance, the total of the debits is $7,500 and the total of the credits is $7,419, the difference could have been caused by

Of the following accounts, the one that normally has a credit balance is

A general journal entry usually includes information about the date of a transaction, titles of affected accounts, dollar amount of each debit and credit and an explanation of the transaction.

An account balance is

A transaction that decreases an asset account and increases a liability account must also affect another account.

The process of copying journal information to the ledger is called

A place or location within an accounting system in which the increases and decreases in a specific asset, liability, or equity item is recorded and stored is called a(n)

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