Question 1

Owner's equity will be reduced by the amount in the drawing account.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

Accepted Answer

A)  A transaction was not posted. 
B)  A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash. 
C)  A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Cash. 
D)  Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable. 
A)  A transaction was not posted. 
B)  A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash. 
C)  A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Cash. 
D)  Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable.

Question 3

On January 31, the cash account balance was $96,750. During January, cash receipts totaled $305,000 and cash payments totaled $375,880. Determine the cash balance on January 1.

Accepted Answer

(??? )+ $305,000 − $

Question 4

The __________ is where a transaction can first be found in the accounting records.

Accepted Answer

A)  chart of accounts 
B)  income statement 
C)  balance sheet 
D)  journal 
A)  chart of accounts 
B)  income statement 
C)  balance sheet 
D)  journal

Question 5

The T account got its name because it resembles the letter "T."

Accepted Answer

A) True 
 B)False

Question 6

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 7

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

Accepted Answer

​ @#IMG-DLM& The trend in sales revenue is unfavor

Question 8

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 9

Owner's equity will be reduced by all of the following except

Accepted Answer

A)  revenues 
B)  expenses 
C)  withdrawals 
D)  All of these choices 
A)  revenues 
B)  expenses 
C)  withdrawals 
D)  All of these choices

Question 10

Which of the following will increase owner's equity?

Accepted Answer

A)  expenses > revenues 
B)  the owner draws money for personal use 
C)  revenues > expenses 
D)  cash is received from customers on account 
A)  expenses > revenues 
B)  the owner draws money for personal use 
C)  revenues > expenses 
D)  cash is received from customers on account

Question 11

Match each of the following accounts with its proper account group from the groups listed below.
​
-Fees Earned

Accepted Answer

A) Assets 
B) Liabilities 
C) Owner's Equity 
D) Revenue 
E) Expenses 
A) Assets 
B) Liabilities 
C) Owner's Equity 
D) Revenue 
E) Expenses

Question 12

The drawing account is an expense.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

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

Question 14

McNally Industries has a condensed income statement as shown.​   Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.

Accepted Answer

A)  $32,500, 19.6% 
B)  $18,000, 10.9% 
C)  $35,000, 17.7% 
D)  $17,000, 9.4% 
A)  $32,500, 19.6% 
B)  $18,000, 10.9% 
C)  $35,000, 17.7% 
D)  $17,000, 9.4%

Question 15

On August 30, JumpStart incurred the following expenses:Payment to the landlord for August rent, $2,300Payment to Gas & Electric Company for August bill, $525Payment of employee wages for the last half of August, $1,750Payment of shopping center's parking lot cleaning fee, $275​Journalize these payments as one compound journal entry.

Accepted Answer

The answer of On August 30, JumpStart incurred the following...

Question 16

Which statement (s) concerning cash is
(are) true?

Accepted Answer

A)  Cash will always have more debits than credits. 
B)  Cash will never have a credit balance. 
C)  Cash is increased by debiting. 
D)  All of these choices. 
A)  Cash will always have more debits than credits. 
B)  Cash will never have a credit balance. 
C)  Cash is increased by debiting. 
D)  All of these choices.

Question 17

Which side of the account increases the cash account?

Accepted Answer

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

Question 18

Accounts payable are accounts that you expect will be paid to you.

Accepted Answer

A) True 
 B)False

Question 19

The increase side of an account is also the side of the normal balance.

Accepted Answer

A) True 
 B)False

Question 20

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Amount incorrectly entered on trial balance

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

Exam 2: Analyzing Transactions

Owner's equity will be reduced by the amount in the drawing account.

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

On January 31, the cash account balance was $96,750. During January, cash receipts totaled $305,000 and cash payments totaled $375,880. Determine the cash balance on January 1.

The __________ is where a transaction can first be found in the accounting records.

The T account got its name because it resembles the letter "T."

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

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

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

Owner's equity will be reduced by all of the following except

Which of the following will increase owner's equity?

Match each of the following accounts with its proper account group from the groups listed below. ​ -Fees Earned

The drawing account is an expense.

Which of the following describes the classification and normal balance of the fees earned account?

McNally Industries has a condensed income statement as shown.​ Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.

Which statement (s) concerning cash is (are) true?

Which side of the account increases the cash account?

Accounts payable are accounts that you expect will be paid to you.

The increase side of an account is also the side of the normal balance.

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Amount incorrectly entered on trial balance

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

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

Match each of the following accounts with its proper account group from the groups listed below. -Fees Earned

McNally Industries has a condensed income statement as shown. Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.