Question 1

A debit is abbreviated as Db and a credit is abbreviated as Cr.

Accepted Answer

A) True 
 B)False

Question 2

On December 1, JumpStart provides $2,800 in services to clients.
(a) Journalize this event as if the clients had paid cash at the time the services were rendered.​
(b) Journalize this event as if the clients had placed this on account.​
(c) Assume that the clients paid $1,200 of the amount on account on December 30. Journalize this transaction.

Accepted Answer

The answer of On December 1, JumpStart provides $2,800 in...

Question 3

In accordance with the debit and credit rules, which of the following is true?

Accepted Answer

A)  Debits increase assets. 
B)  Credits increase assets. 
C)  Debits increase both assets and capital. 
D)  Credits increase both assets and liabilities. 
A)  Debits increase assets. 
B)  Credits increase assets. 
C)  Debits increase both assets and capital. 
D)  Credits increase both assets and liabilities.

Question 4

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

Accepted Answer

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

Question 5

A client has a massage and asks the company bookkeeper to mail her the bill. The bookkeeper should make which entry to record the invoice?

Accepted Answer

A)  no entry until the cash is received 
B)  Fees Earned, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit 
A)  no entry until the cash is received 
B)  Fees Earned, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit

Question 6

The normal balance of the drawing account is a debit.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following situations increases owner's 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 8

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  liabilities 
B)  owner's equity 
C)  assets 
D)  revenues 
A)  liabilities 
B)  owner's equity 
C)  assets 
D)  revenues

Question 10

A credit balance in which of the following accounts would likely indicate an error?

Accepted Answer

A)  Fees Earned 
B)  Salary Expense 
C)  Janet James, Capital 
D)  Accounts Payable 
A)  Fees Earned 
B)  Salary Expense 
C)  Janet James, Capital 
D)  Accounts Payable

Question 11

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to confirm this suspicion?

Accepted Answer

A)  Determine the amount of the error and look for that amount on the trial balance. 
B)  Determine the amount of the error and divide by 2, then look for that amount on the trial balance. 
C)  Determine the amount of the error and refer to the journal entries for that amount. 
D)  Determine the amount of the error and divide by 9. If the result is evenly divided, then this type of error is likely. 
A)  Determine the amount of the error and look for that amount on the trial balance. 
B)  Determine the amount of the error and divide by 2, then look for that amount on the trial balance. 
C)  Determine the amount of the error and refer to the journal entries for that amount. 
D)  Determine the amount of the error and divide by 9. If the result is evenly divided, then this type of error is likely.

Question 12

Which of the following errors will 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 13

Lewis Company has a condensed income statement as shown below.​   RequiredPrepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable.

Accepted Answer

​ @#IMG-DLM& While the trend in sales re

Question 14

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 15

The gross increases in owner's equity attributable to business activities are called

Accepted Answer

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

Question 16

Normal account balances are on the increase side of the accounts.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Which of the following entries records the withdrawal of cash by Sally Anderson, owner of a proprietorship, for personal use?

Accepted Answer

A)  debit Sally Anderson, Capital; credit Cash 
B)  debit Sally Anderson, Drawing; credit Cash 
C)  debit Salaries Expense; credit Cash 
D)  debit Salaries Expense; credit Salaries Payable 
A)  debit Sally Anderson, Capital; credit Cash 
B)  debit Sally Anderson, Drawing; credit Cash 
C)  debit Salaries Expense; credit Cash 
D)  debit Salaries Expense; credit Salaries Payable

Question 19

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

Accepted Answer

A) True 
 B)False

Question 20

The classification and normal balance of the accounts payable account are

Accepted Answer

A)  asset, credit balance 
B)  liability, credit balance 
C)  owner's equity, credit balance 
D)  revenue, credit balance 
A)  asset, credit balance 
B)  liability, credit balance 
C)  owner's equity, credit balance 
D)  revenue, credit balance

Exam 2: Analyzing Transactions

A debit is abbreviated as Db and a credit is abbreviated as Cr.

In accordance with the debit and credit rules, which of the following is true?

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

A client has a massage and asks the company bookkeeper to mail her the bill. The bookkeeper should make which entry to record the invoice?

The normal balance of the drawing account is a debit.

Which of the following situations increases owner's equity?

A transaction that is recorded in the journal is called a journal entry.

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

A credit balance in which of the following accounts would likely indicate an error?

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to confirm this suspicion?

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

Lewis Company has a condensed income statement as shown below.​ RequiredPrepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable.

Liabilities are increased with debits and decreased with credits.

The gross increases in owner's equity attributable to business activities are called

Normal account balances are on the increase side of the accounts.

The process of initially recording a business transaction is called

Which of the following entries records the withdrawal of cash by Sally Anderson, owner of a proprietorship, for personal use?

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

The classification and normal balance of the accounts payable account are

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

Filters

Lewis Company has a condensed income statement as shown below. RequiredPrepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable.