Question 1

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be

Accepted Answer

D

Question 2

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  False

Question 3

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." 
(a) whether the change in the account would be recorded as a debit or a credit and 
(b) whether the normal balance of the account is a debit or a credit.

Accepted Answer

The answer of Increases and decreases in various types of...

Question 4

The debit side of an account

Accepted Answer

A)  depends on whether the account is an asset, liability, or owner's 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 owner's 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 5

Which of the following entries records the payment of insurance for the current month?

Accepted Answer

A)  Cash, debit; Insurance Expense, credit 
B)  Insurance Expense, debit; Cash, credit 
C)  Insurance Expense, debit; Accounts Receivable, credit 
D)  Prepaid Insurance, debit; Cash, credit 
A)  Cash, debit; Insurance Expense, credit 
B)  Insurance Expense, debit; Cash, credit 
C)  Insurance Expense, debit; Accounts Receivable, credit 
D)  Prepaid Insurance, debit; Cash, credit

Question 6

The cash account will always be debited.

Accepted Answer

A) True 
 B)False

Question 7

Assets are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a correct rule of debits and credits?

Accepted Answer

A)  Assets, expenses, and withdrawals are increased by debits. 
B)  Assets are decreased by credits and have a normal debit balance. 
C)  Liabilities, revenues, and owner's equity are increased by credits. 
D)  The normal balance for revenues and expenses is a credit. 
A)  Assets, expenses, and withdrawals are increased by debits. 
B)  Assets are decreased by credits and have a normal debit balance. 
C)  Liabilities, revenues, and owner's equity are increased by credits. 
D)  The normal balance for revenues and expenses is a credit.

Question 9

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 10

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Column incorrectly added

Accepted Answer

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

Question 11

The double-entry accounting system records each transaction twice.

Accepted Answer

A) True 
 B)False

Question 12

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

Accepted Answer

A)  zero 
B)  twice the amount of the transposition 
C)  one-half the amount of the transposition 
D)  divisible by 9 
A)  zero 
B)  twice the amount of the transposition 
C)  one-half the amount of the transposition 
D)  divisible by 9

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The process of transferring the debits and credits from the journal entries to the accounts is called

Accepted Answer

A)  sliding 
B)  transposing 
C)  journalizing 
D)  posting 
A)  sliding 
B)  transposing 
C)  journalizing 
D)  posting

Question 15

On October 30, Damien Lawson withdraws $3,330 from JumpStart for personal use. Journalize this event.

Accepted Answer

Oct. 30Damien Lawson

Question 16

State for each account whether it is likely to have 
(a) debit entries only, 
(b) credit entries only, or 
(c) both debit and credit entries when recording business transactions during the month. Also, indicate the normal balance of each account.
1.Fees Earned
4.Supplies
2.Utilities Expense
5.Cash
3.Accounts Payable
6.Accounts Receivable

Accepted Answer

1. Credit entries only, normal credit ba

Question 17

Which are the parts of the T account?

Accepted Answer

A)  title, date, total 
B)  date, debit side, credit side 
C)  title, debit side, credit side 
D)  title, debit side, total 
A)  title, date, total 
B)  date, debit side, credit side 
C)  title, debit side, credit side 
D)  title, debit side, total

Question 18

The chart of accounts for Corning Company includes the following:
 $$\begin{array} { | l | c | } 
\hline{ \text { Account Name } } & \text { Account Number } \
\hline \text { Cash } & 11 \
\hline \text { Accounts Receivable } & 13 \
\hline \text { Prepaid Insurance } & 15 \
\hline \text { Accounts Payable } & 21 \
\hline \text { Unearned Revenue } & 24 \
\hline \text { Corning Capital } & 31 \
\hline \text { Corning Drawing } & 32 \
\hline \text { Fees Earned } & 41 \
\hline \text { Salaries Expense } & 54 \
\hline \text { Rent Expense } & 56 \
\hline
\end{array}$$ ?
Page 3 of the journal contains the following entry:
Prepaid Insurance........1,530
Cash.............................1,530
-The chart of accounts for Miguel Company includes the following:? $$\begin{array} { | l | c | } 
\hline{ \text { Account Name } } & \text { Account Number } \
\hline \text { Cash } & 11 \
\hline \text { Accounts Receivable } & 13 \
\hline \text { Prepaid Insurance } & 15 \
\hline \text { Accounts Payable } & 21 \
\hline \text { Unearned Revenue } & 24 \
\hline \text { Miguel, Capital } & 31 \
\hline \text { Miguel, Drawing } & 32 \
\hline \text { Fees Earned } & 41 \
\hline \text { Salaries Expense } & 54 \
\hline \text { Rent Expense } & 56 \
\hline
\end{array}$$ Page 5 of the journal contains the following transaction:? $$\begin{array} { | c | r | r | } 
\hline \text { Sal aries Expense } & 525 & \
\hline \text { Cash } & & 525 \
\hline
\end{array}$$ What is the posting reference that will be found in the salaries expense account?

Accepted Answer

A)  5 
B)  11 
C)  54 
D)  21 
A)  5 
B)  11 
C)  54 
D)  21

Question 19

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

Accepted Answer

A)  revenues and liabilities 
B)  drawing and assets 
C)  liabilities and drawing 
D)  expenses and liabilities 
A)  revenues and liabilities 
B)  drawing and assets 
C)  liabilities and drawing 
D)  expenses and liabilities

Question 20

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be

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

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit.

The debit side of an account

Which of the following entries records the payment of insurance for the current month?

The cash account will always be debited.

Assets are increased with debits and decreased with credits.

Which of the following is not a correct rule of debits and credits?

A cash payment is recorded in the cash account as

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Column incorrectly added

The double-entry accounting system records each transaction twice.

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

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

The process of transferring the debits and credits from the journal entries to the accounts is called

On October 30, Damien Lawson withdraws $3,330 from JumpStart for personal use. Journalize this event.

Which are the parts of the T account?

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

The normal balance of an expense account is a credit.

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

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