Question 1

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following entries records the collection of cash from cash customers?

Accepted Answer

A)  Fees Earned, debit; Cash, credit 
B)  Fees Earned, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit 
A)  Fees Earned, debit; Cash, credit 
B)  Fees Earned, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit

Question 3

Which of the following errors could cause the trial balance totals to be unequal?

Accepted Answer

A)  posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted 
B)  failure to record a transaction or to post a transaction 
C)  recording the same transaction more than once 
D)  recording the same erroneous amount for both the debit and the credit parts of a transaction 
A)  posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted 
B)  failure to record a transaction or to post a transaction 
C)  recording the same transaction more than once 
D)  recording the same erroneous amount for both the debit and the credit parts of a transaction

Question 4

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

The accounts payable account is listed in the chart of accounts as an asset.

Accepted Answer

A) True 
 B)False

Question 6

Even when a trial balance is in balance, there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 7

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Question 8

The order of the flow of accounting data is 1) record in the ledger, 2) record in the journal, 3) prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 9

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Balance entered in wrong column or omitted.

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

The classification and normal balance of the dividends account is

Accepted Answer

A)  an expense with a credit balance 
B)  an expense with a debit balance 
C)  a liability with a credit balance 
D)  stockholders' equity with a debit balance 
A)  an expense with a credit balance 
B)  an expense with a debit balance 
C)  a liability with a credit balance 
D)  stockholders' equity with a debit balance

Question 12

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:
a) Received $18,000 from sale of common stock.
b) Purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder.
c) Paid $2,300 for rent for April.
d) Purchased $1,500 of supplies on account.
e) Recorded $9,800 of fees earned on account.
f) Received $7,500 in cash for fees earned.
g) Paid $1,200 to creditors on account.
h) Paid wages of $3,425.
i) Received $7,900 from customers on account.
j) Recorded dividends of $1,875.

Accepted Answer

The answer of Record the following selected transactions for April...

Question 13

The Unearned Revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following accounts are debited to record increases?

Accepted Answer

A)  assets and liabilities 
B)  dividends and liabilities 
C)  expenses and liabilities 
D)  assets and expenses 
A)  assets and liabilities 
B)  dividends and liabilities 
C)  expenses and liabilities 
D)  assets and expenses

Question 15

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

Accepted Answer

$75,880 = $96,750 +

Question 16

On October 17, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Provide the journal entry for this transaction.

Accepted Answer

The answer of On October 17, Nikle Company purchased a...

Question 17

Assets are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 18

Expenses follow the same debit and credit rules as

Accepted Answer

A)  revenues 
B)  the asset account 
C)  the common stock account 
D)  liabilities 
A)  revenues 
B)  the asset account 
C)  the common stock account 
D)  liabilities

Question 19

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.   Total assets are

Accepted Answer

A)  $10,000 
B)  $8,000 
C)  $9,700 
D)  $9,800 
A)  $10,000 
B)  $8,000 
C)  $9,700 
D)  $9,800

Question 20

Which of the following groups of accounts have a normal debit balance?

Accepted Answer

A)  revenues, liabilities, and stockholders' equity 
B)  stockholders' equity and assets 
C)  liabilities and stockholders' equity 
D)  assets and expenses 
A)  revenues, liabilities, and stockholders' equity 
B)  stockholders' equity and assets 
C)  liabilities and stockholders' equity 
D)  assets and expenses

Exam 2: Analyzing Transactions

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Which of the following entries records the collection of cash from cash customers?

Which of the following errors could cause the trial balance totals to be unequal?

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

The accounts payable account is listed in the chart of accounts as an asset.

Even when a trial balance is in balance, there may be errors in the individual accounts.

Consuming goods and services in the process of generating revenues results in expenses.

The order of the flow of accounting data is 1) record in the ledger, 2) record in the journal, 3) prepare the financial statements.

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Balance entered in wrong column or omitted.

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

The classification and normal balance of the dividends account is

The Unearned Revenues account is an example of a liability.

Which of the following accounts are debited to record increases?

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

On October 17, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Provide the journal entry for this transaction.

Assets are increased with debits and decreased with credits.

Expenses follow the same debit and credit rules as

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. Total assets are

Which of the following groups of accounts have a normal debit balance?

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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