Question 1

Net income will result when

Accepted Answer

A)  revenues credits) > expenses debits) 
B)  revenues debits) > expenses credits) 
C)  expenses credits) = revenues debits) 
D)  revenues credits) = expenses debits) 
A)  revenues credits) > expenses debits) 
B)  revenues debits) > expenses credits) 
C)  expenses credits) = revenues debits) 
D)  revenues credits) = expenses debits)

Question 2

The balance of an account is determined by

Accepted Answer

A)  adding all of the debits to all of the credits 
B)  always subtracting the debits from the credits 
C)  always subtracting the credits from the debits 
D)  adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum 
A)  adding all of the debits to all of the credits 
B)  always subtracting the debits from the credits 
C)  always subtracting the credits from the debits 
D)  adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum

Question 3

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.
-Copyrights

Accepted Answer

A) Credit side 
B) Debit side 
A) Credit side 
B) Debit side

Question 4

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Accepted Answer

A) True 
 B)False

Question 5

The process of initially recording a business transaction is called

Accepted Answer

A)  closing 
B)  posting 
C)  journalizing 
D)  balancing 
A)  closing 
B)  posting 
C)  journalizing 
D)  balancing

Question 6

The recording of cash receipts to the cash account will be done by debiting the account.

Accepted Answer

A) True 
 B)False

Question 7

Calculate the following:
a) Determine the cash receipts for April based on the following data: Cash payments during April $\quad \$ 63,000$
Cash account balance, April $1 \quad 25,500$
Cash account balance, April $30 \quad 31,750$ b) Determine the cash received from customers on account during April based on the following data:
Accounts receivable account balance, April 1 $22,500
Accounts receivable account balance, April 30 15,250
Fees billed to customers during April 45,000

Accepted Answer

a) $69,250 $31,750 +

Question 8

Of the following, which is true about assets?

Accepted Answer

A)  Assets include both physical and intangible items. 
B)  Assets include only physical items. 
C)  Assets are the personal property of the stockholders of the company. 
D)  Assets are the result of selling products or services to customers. 
A)  Assets include both physical and intangible items. 
B)  Assets include only physical items. 
C)  Assets are the personal property of the stockholders of the company. 
D)  Assets are the result of selling products or services to customers.

Question 9

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following entries records the purchase of common stock by stockholders?

Accepted Answer

A)  debit Common Stock; credit Accounts Receivable 
B)  debit Cash; credit Common Stock 
C)  debit Dividends; credit Cash 
D)  debit Cash; credit Common Stock. 
A)  debit Common Stock; credit Accounts Receivable 
B)  debit Cash; credit Common Stock 
C)  debit Dividends; credit Cash 
D)  debit Cash; credit Common Stock.

Question 11

Journal entries can have more than two accounts as long as the debits equal the credits.

Accepted Answer

A) True 
 B)False

Question 12

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Accepted Answer

A) True 
 B)False

Question 13

On November 10, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600 in cash and put the balance on account.
a) Journalize this event.
b) On November 20, JumpStart Co. clients paid an additional $900 on their accounts due. Journalize this event.
c) Calculate the accounts receivable balance on November 30.

Accepted Answer

The answer of On November 10, JumpStart Co. provides $2,900...

Question 14

The debit side of an account

Accepted Answer

A)  depends on whether the account is an asset, liability, or stockholders' equity 
B)  can be either side of the account depending on how the accountant set up the system 
C)  is the right side of the account 
D)  is the left side of the account 
A)  depends on whether the account is an asset, liability, or stockholders' equity 
B)  can be either side of the account depending on how the accountant set up the system 
C)  is the right side of the account 
D)  is the left side of the account

Question 15

Postings made to standard account forms show a new balance after each entry.

Accepted Answer

A) True 
 B)False

Question 16

In the chart of accounts, the balance sheet accounts are normally listed in which order?

Accepted Answer

A)  liabilities, assets, stockholders' equity 
B)  assets, liabilities, stockholders' equity 
C)  stockholders' equity, assets, liabilities 
D)  assets, stockholders' equity, liabilities 
A)  liabilities, assets, stockholders' equity 
B)  assets, liabilities, stockholders' equity 
C)  stockholders' equity, assets, liabilities 
D)  assets, stockholders' equity, liabilities

Question 17

In which of the following types of accounts are decreases recorded by credits?

Accepted Answer

A)  liabilities 
B)  stockholders' equity 
C)  assets 
D)  revenues 
A)  liabilities 
B)  stockholders' equity 
C)  assets 
D)  revenues

Question 18

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

Accepted Answer

A) True 
 B)False

Question 19

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Debit posted as credit, or vice versa.

Accepted Answer

A) Trial balance preparation errors 
B) Account balance errors 
C) Posting errors 
A) Trial balance preparation errors 
B) Account balance errors 
C) Posting errors

Question 20

On November 1, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Provide the journal entry for this transaction.

Accepted Answer

The answer of On November 1, Nikle Company made a...

Exam 2: Analyzing Transactions

Net income will result when

The balance of an account is determined by

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Copyrights

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

The process of initially recording a business transaction is called

The recording of cash receipts to the cash account will be done by debiting the account.

Of the following, which is true about assets?

Liabilities are increased with debits and decreased with credits.

Which of the following entries records the purchase of common stock by stockholders?

Journal entries can have more than two accounts as long as the debits equal the credits.

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

The debit side of an account

Postings made to standard account forms show a new balance after each entry.

In the chart of accounts, the balance sheet accounts are normally listed in which order?

In which of the following types of accounts are decreases recorded by credits?

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Debit posted as credit, or vice versa.

On November 1, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Provide the journal entry for this transaction.

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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