Question 1

Which of the following entries records the payment of dividends?

Accepted Answer

A)  debit Common Stock; credit Cash 
B)  debit Dividends; credit Cash 
C)  debit Salaries Expense; credit Cash 
D)  debit Salaries Expense; credit Salaries Payable 
A)  debit Common Stock; credit Cash 
B)  debit Dividends; credit Cash 
C)  debit Salaries Expense; credit Cash 
D)  debit Salaries Expense; credit Salaries Payable

Question 2

Accounts are records of increases and decreases in individual financial statement items.

Accepted Answer

A) True 
 B)False

Question 3

When an owner invests assets in the business, the retained earnings account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Question 4

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Accepted Answer

A) True 
 B)False

Question 5

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Accepted Answer

A)  Cash, debit; Wages Expense, credit 
B)  Wages Payable, debit; Wages Expense, credit 
C)  Wages Expense, debit; Cash, credit 
D)  Cash, debit; Wages Payable, credit 
A)  Cash, debit; Wages Expense, credit 
B)  Wages Payable, debit; Wages Expense, credit 
C)  Wages Expense, debit; Cash, credit 
D)  Cash, debit; Wages Payable, credit

Question 6

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Accepted Answer

A) True 
 B)False

Question 7

A cash payment is recorded in the cash account as

Accepted Answer

A)  neither a debit nor a credit 
B)  a credit 
C)  a debit 
D)  either a debit or a credit 
A)  neither a debit nor a credit 
B)  a credit 
C)  a debit 
D)  either a debit or a credit

Question 8

Transactions are initially entered into a record called a journal.

Accepted Answer

A) True 
 B)False

Question 9

Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

A)  Cash, debit; Common Stock, credit 
B)  Accounts Payable, debit; Cash, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Accounts Payable, debit; Account Receivable, credit 
A)  Cash, debit; Common Stock, credit 
B)  Accounts Payable, debit; Cash, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Accounts Payable, debit; Account Receivable, credit

Question 10

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

Accepted Answer

A) True 
 B)False

Question 11

On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use for transactions a) through f), each identified by a number. Following this list are the transactions that occurred in Walker's first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account numbers) in the appropriate box.
1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Common Stock
10. Dividends
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense $$\begin{array} { | l | l | l | } 
\hline \text { Transactions } & \text { Accounts) Debited } & \text { Accounts) Credited } \
\hline \begin{array} { l } 
\text { a. Recorded jobs completed on } \
\text { account and sent invoices to } \
\text { customers. }
\end{array} & & \
\hline \text { b. Received an invoice for truck } & & \
\text { expenses to be paid in February. } & & \
\hline \text { c. Paid utilities expense } & & \
\hline \begin{array} { l } 
\text { d. Received cash from customers on } \
\text { account. }
\end{array} & & \
\hline \text { e. Paid employee wages. } & & \
\hline \text { f. Paid dividends to stockholders. } & & \
\hline
\end{array}$$

Accepted Answer

The answer of On January 1, Merry Walker and other...

Question 12

The posting process will include the transfer of which of the following data from the journal to the account?

Accepted Answer

A)  date, amount debit or credit) 
B)  date, amount debit or credit), journal page number 
C)  amount debit or credit), account number 
D)  date, amount debit or credit), account number 
A)  date, amount debit or credit) 
B)  date, amount debit or credit), journal page number 
C)  amount debit or credit), account number 
D)  date, amount debit or credit), account number

Question 13

Randomly listed below are the steps for preparing a trial balance: 1) Verify that the total of the Debit column equals the total of the Credit column.
2) List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column of the trial balance.
3) List the name of the company, the title of the trial balance, and the date the trial balance is prepared.
4) Total the Debit and Credit columns of the trial balance.
What is the proper order of these steps?

Accepted Answer

A)  3), 2), 4), 1) 
B)  2), 3), 4), 1) 
C)  3), 2), 1), 4) 
D)  4), 3), 2), 1) 
A)  3), 2), 4), 1) 
B)  2), 3), 4), 1) 
C)  3), 2), 1), 4) 
D)  4), 3), 2), 1)

Question 14

Which of the following entries records the acquisition of office supplies on account?

Accepted Answer

A)  Office Supplies, debit; Cash, credit 
B)  Cash, debit; Office Supplies, credit 
C)  Office Supplies, debit; Accounts Payable, credit 
D)  Accounts Receivable, debit; Office Supplies, credit 
A)  Office Supplies, debit; Cash, credit 
B)  Cash, debit; Office Supplies, credit 
C)  Office Supplies, debit; Accounts Payable, credit 
D)  Accounts Receivable, debit; Office Supplies, credit

Question 15

Which of the following situations increase stockholders' equity?

Accepted Answer

A)  Supplies are purchased on account. 
B)  Services are provided on account. 
C)  Cash is received from customers on account. 
D)  Utility bill will be paid next month. 
A)  Supplies are purchased on account. 
B)  Services are provided on account. 
C)  Cash is received from customers on account. 
D)  Utility bill will be paid next month.

Question 16

A debit may signify an)

Accepted Answer

A)  decrease in asset accounts 
B)  decrease in liability accounts 
C)  increase in the common stock account 
D)  decrease in the dividends account 
A)  decrease in asset accounts 
B)  decrease in liability accounts 
C)  increase in the common stock account 
D)  decrease in the dividends account

Question 17

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A)  decrease Prepaid Insurance with a credit and the normal balance is a credit 
B)  increase Accounts Payable with a credit and the normal balance is a debit 
C)  increase Equipment with a debit and the normal balance is a debit 
D)  decrease Cash with a debit and the normal balance is a credit 
A)  decrease Prepaid Insurance with a credit and the normal balance is a credit 
B)  increase Accounts Payable with a credit and the normal balance is a debit 
C)  increase Equipment with a debit and the normal balance is a debit 
D)  decrease Cash with a debit and the normal balance is a credit

Question 18

Organize the following accounts into the usual sequence of a chart of accounts.
Miscellaneous Expense Accounts Payable Accounts Receivable Cash
Common Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

Accepted Answer

Cash
Accounts Receivable Prepa

Question 19

On October 30, JumpStart pays $3,330 in dividends to its stockholders. Journalize this event.

Accepted Answer

The answer of On October 30, JumpStart pays $3,330 in...

Question 20

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts:   ​   ​   ​   ​   ​
Indicate the following for each debit and each credit:
a)The type of account affected asset, liability, equity, dividends, revenue, or expense).
b)The effect on the account, using "+" for increase and "−" for decrease.
​
Present your answers in the following form:

Accepted Answer

The answer of All nine transactions for Dalton Survey Company...

Exam 2: Analyzing Transactions

Which of the following entries records the payment of dividends?

Accounts are records of increases and decreases in individual financial statement items.

When an owner invests assets in the business, the retained earnings account increases due to revenue being earned.

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

A cash payment is recorded in the cash account as

Transactions are initially entered into a record called a journal.

Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

The posting process will include the transfer of which of the following data from the journal to the account?

Which of the following entries records the acquisition of office supplies on account?

Which of the following situations increase stockholders' equity?

A debit may signify an)

Which of the following applications of the rules of debit and credit is true?

Organize the following accounts into the usual sequence of a chart of accounts. Miscellaneous Expense Accounts Payable Accounts Receivable Cash Common Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

On October 30, JumpStart pays $3,330 in dividends to its stockholders. Journalize this event.

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

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