Question 1

Accounts Receivable is increased with a credit.

Accepted Answer

A) True 
 B)False

Question 2

Accounts are listed in random order in a trial balance.

Accepted Answer

A) True 
 B)False

Question 3

An example of a transposition error is writing:

Accepted Answer

A) $500 as $50. 
B) $4000 as $8000. 
C) $600 as $1200. 
D) $1500 as $5100. 
A) $500 as $50. 
B) $4000 as $8000. 
C) $600 as $1200. 
D) $1500 as $5100.

Question 4

The balance of an account is the difference between the account's total debits and total credits.

Accepted Answer

A) True 
 B)False

Question 5

Which transaction decreases stockholders' equity?

Accepted Answer

A) Inventory was purchased on account. 
B) Services were performed on account. 
C) Services were performed and cash was immediately received from the customers. 
D) Employees worked one week and were paid at the end of the week. 
A) Inventory was purchased on account. 
B) Services were performed on account. 
C) Services were performed and cash was immediately received from the customers. 
D) Employees worked one week and were paid at the end of the week.

Question 6

Which transaction decreases stockholders' equity?

Accepted Answer

A) sale of common stock 
B) cash purchase of land 
C) total revenues greater than total expenses for the period 
D) total expenses greater than total revenues for the period 
A) sale of common stock 
B) cash purchase of land 
C) total revenues greater than total expenses for the period 
D) total expenses greater than total revenues for the period

Question 7

A bookkeeper forgot to post a credit to Accounts Receivable, but did post the debit part of the journal entry correctly. Then:

Accepted Answer

A) the trial balance would still balance. 
B) total debits would exceed total credits on the trial balance. 
C) total credits would exceed total debits on the trial balance. 
D) total debits and total credits would both be incorrect on the trial balance. 
A) the trial balance would still balance. 
B) total debits would exceed total credits on the trial balance. 
C) total credits would exceed total debits on the trial balance. 
D) total debits and total credits would both be incorrect on the trial balance.

Question 8

When a trial balance is out of balance due to a slide-type error, the difference between total debits and total credits will be evenly divisible by 9.

Accepted Answer

A) True 
 B)False

Question 9

When listing the accounts on the trial balance, where is the dividends account listed?

Accepted Answer

A) It is not listed on the trial balance. 
B) After Retained Earnings. 
C) After Service Revenue or Sales Revenue. 
D) As part of the expense accounts. 
A) It is not listed on the trial balance. 
B) After Retained Earnings. 
C) After Service Revenue or Sales Revenue. 
D) As part of the expense accounts.

Question 10

Two employees worked one week and were paid salaries of $1600. The journal entry would:

Accepted Answer

A) debit Cash for $1600 and credit Salaries Payable for $1600. 
B) debit Cash for $1600 and credit Salary Expense for $1600. 
C) debit Accounts Payable for $1600 and credit Salary Payable for $1600. 
D) debit Salary Expense for $1600 and credit Cash for $1600. 
A) debit Cash for $1600 and credit Salaries Payable for $1600. 
B) debit Cash for $1600 and credit Salary Expense for $1600. 
C) debit Accounts Payable for $1600 and credit Salary Payable for $1600. 
D) debit Salary Expense for $1600 and credit Cash for $1600.

Question 11

Each journal entry should contain a brief description of the transaction.

Accepted Answer

A) True 
 B)False

Question 12

Wrobell Company has the following incorrect trial balance available on December 31, 2017:
   The following errors in the trial balance were made:
1. Recorded $200 cash revenue received by debiting Accounts Receivable for $200 and crediting Sales Revenue for $200.
2. Posted a $1,000 credit to Accounts Payable as $100.
3. Understated Common Stock by $200.
4. Omitted a journal entry that debits Insurance Expense for $3,700 and credits Cash for $3,700.
Prepare a corrected trial balance at December 31, 2017. A proper heading is not required.

Accepted Answer

The answer of Wrobell Company has the following incorrect trial...

Question 13

A chart of accounts:

Accepted Answer

A) is used by an organization to determine the balance in all of their accounts. 
B) lists all of the accounts of an organization in alphabetical order. 
C) must be the same for all organizations. 
D) lists all of an organization's accounts and account numbers. 
A) is used by an organization to determine the balance in all of their accounts. 
B) lists all of the accounts of an organization in alphabetical order. 
C) must be the same for all organizations. 
D) lists all of an organization's accounts and account numbers.

Question 14

When posting a journal entry to the ledger, transfer:

Accepted Answer

A) the dollar amount of debits in the journal entry to the appropriate accounts. 
B) the dollar amounts of credits in the journal entry to the appropriate accounts. 
C) the name of the person who prepared the journal entry. 
D) A and B. 
A) the dollar amount of debits in the journal entry to the appropriate accounts. 
B) the dollar amounts of credits in the journal entry to the appropriate accounts. 
C) the name of the person who prepared the journal entry. 
D) A and B.

Question 15

A business purchased office supplies of $29,000 by signing a note. The business would:

Accepted Answer

A) debit Supplies for $29,000 and credit Accounts Payable for $29,000. 
B) debit Supplies for $29,000 and credit Notes Payable for $29,000. 
C) debit Notes Receivable for $29,000 and credit Supplies for $29,000. 
D) debit Notes Payable for $29,000 and credit Supplies Expense for $29,000. 
A) debit Supplies for $29,000 and credit Accounts Payable for $29,000. 
B) debit Supplies for $29,000 and credit Notes Payable for $29,000. 
C) debit Notes Receivable for $29,000 and credit Supplies for $29,000. 
D) debit Notes Payable for $29,000 and credit Supplies Expense for $29,000.

Question 16

On May 1, a company provided legal services for a new client. The legal fee was $2500 and the client paid, by check, before leaving the office that day. How does this transaction affect the accounting equation?

Accepted Answer

A) Add $2500 to Cash and add $2500 to Service Revenue. 
B) Add $2500 to Cash and add $2500 to Retained Earnings. 
C) Add $2500 to Cash and subtract $2500 from Accounts Receivable. 
D) Add $2500 to Cash and subtract $2500 from Accounts Payable. 
A) Add $2500 to Cash and add $2500 to Service Revenue. 
B) Add $2500 to Cash and add $2500 to Retained Earnings. 
C) Add $2500 to Cash and subtract $2500 from Accounts Receivable. 
D) Add $2500 to Cash and subtract $2500 from Accounts Payable.

Question 17

Simmons Company began the month with a balance of $84,000 in Accounts Receivable. An analysis of the account determined that sales on account for the month totaled $112,000. At the end of the month, the balance in Accounts Receivable was $85,000. From this information, it can be determined that Simmons Company had collections from customers on account of:

Accepted Answer

A) $28,000. 
B) $57,000. 
C) $113,000. 
D) $111,000. 
A) $28,000. 
B) $57,000. 
C) $113,000. 
D) $111,000.

Question 18

A company incorrectly recorded a receipt of cash on account. Accounts Receivable was debited for $900 and Cash was credited for $900. Is the trial balance out of balance?

Accepted Answer

A) No. 
B) Yes, by $900. 
C) Yes, by $1800. 
D) Yes, by $2700. 
A) No. 
B) Yes, by $900. 
C) Yes, by $1800. 
D) Yes, by $2700.

Question 19

A company performs services for a client on account. When the company receives the cash from the customer one month later:

Accepted Answer

A) a revenue account is increased. 
B) a liability account is decreased. 
C) there is no change in total assets. 
D) an expense account is decreased. 
A) a revenue account is increased. 
B) a liability account is decreased. 
C) there is no change in total assets. 
D) an expense account is decreased.

Question 20

The trial balance is used to determine if:

Accepted Answer

A) total assets equal total liabilities. 
B) total debits of all the accounts equal total credits of all the accounts. 
C) total debits of the income statement accounts equal the total credits of the income statement accounts. 
D) total debits of the balance sheet accounts equal the total credits of the balance sheet accounts. 
A) total assets equal total liabilities. 
B) total debits of all the accounts equal total credits of all the accounts. 
C) total debits of the income statement accounts equal the total credits of the income statement accounts. 
D) total debits of the balance sheet accounts equal the total credits of the balance sheet accounts.

Accounts Receivable is increased with a credit.

Accounts are listed in random order in a trial balance.

An example of a transposition error is writing:

The balance of an account is the difference between the account's total debits and total credits.

Which transaction decreases stockholders' equity?

Which transaction decreases stockholders' equity?

A bookkeeper forgot to post a credit to Accounts Receivable, but did post the debit part of the journal entry correctly. Then:

When a trial balance is out of balance due to a slide-type error, the difference between total debits and total credits will be evenly divisible by 9.

When listing the accounts on the trial balance, where is the dividends account listed?

Two employees worked one week and were paid salaries of $1600. The journal entry would:

Each journal entry should contain a brief description of the transaction.

A chart of accounts:

When posting a journal entry to the ledger, transfer:

A business purchased office supplies of $29,000 by signing a note. The business would:

On May 1, a company provided legal services for a new client. The legal fee was $2500 and the client paid, by check, before leaving the office that day. How does this transaction affect the accounting equation?

A company incorrectly recorded a receipt of cash on account. Accounts Receivable was debited for $900 and Cash was credited for $900. Is the trial balance out of balance?

A company performs services for a client on account. When the company receives the cash from the customer one month later:

The trial balance is used to determine if:

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Transaction Analysis

Accounts Receivable is increased with a credit.

Accounts are listed in random order in a trial balance.

An example of a transposition error is writing:

The balance of an account is the difference between the account's total debits and total credits.

Which transaction decreases stockholders' equity?

Which transaction decreases stockholders' equity?

A bookkeeper forgot to post a credit to Accounts Receivable, but did post the debit part of the journal entry correctly. Then:

When a trial balance is out of balance due to a slide-type error, the difference between total debits and total credits will be evenly divisible by 9.

When listing the accounts on the trial balance, where is the dividends account listed?

Two employees worked one week and were paid salaries of $1600. The journal entry would:

Each journal entry should contain a brief description of the transaction.

A chart of accounts:

When posting a journal entry to the ledger, transfer:

A business purchased office supplies of $29,000 by signing a note. The business would:

On May 1, a company provided legal services for a new client. The legal fee was $2500 and the client paid, by check, before leaving the office that day. How does this transaction affect the accounting equation?

A company incorrectly recorded a receipt of cash on account. Accounts Receivable was debited for $900 and Cash was credited for $900. Is the trial balance out of balance?

A company performs services for a client on account. When the company receives the cash from the customer one month later:

The trial balance is used to determine if:

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The Statement of Cash Flows

Financial Statement Analysis

Filters