Question 1

Credits to accounts are always increases

Accepted Answer

A) True 
 B)False

Question 2

The total dollar value of all debits and credits recorded in a journal entry must be equal

Accepted Answer

A) True 
 B)False

Question 3

A debit is used to record

Accepted Answer

A) An increase in an asset account. 
B) A decrease in an asset account. 
C) An increase in a revenue account. 
D) An increase in a liability account. 
E) A decrease in the withdrawals account. 
A) An increase in an asset account. 
B) A decrease in an asset account. 
C) An increase in a revenue account. 
D) An increase in a liability account. 
E) A decrease in the withdrawals account.

Question 4

The chart of accounts is a list of all the accounts used by a company

Accepted Answer

A) True 
 B)False

Question 5

The following is a correct journal entry:   What is this journal entry recording?

Accepted Answer

A) An increase in an asset and an increase in owners' equity. 
B) An increase in owners' equity and a decrease in assets. 
C) A decrease in an asset and a decrease in owners' equity. 
D) An increase in an asset and a decrease in owners' equity. 
E) An increase in an asset and an increase in a liability. 
A) An increase in an asset and an increase in owners' equity. 
B) An increase in owners' equity and a decrease in assets. 
C) A decrease in an asset and a decrease in owners' equity. 
D) An increase in an asset and a decrease in owners' equity. 
E) An increase in an asset and an increase in a liability.

Question 6

Jelly's Grocery Store showed the following account balances at the end of 2015:   If all of the accounts have normal balances, what are the totals for the trial balance?

Accepted Answer

A) $127,600. 
B) $119,600. 
C) $86,000. 
D) $186,600. 
E) $255,500. 
A) $127,600. 
B) $119,600. 
C) $86,000. 
D) $186,600. 
E) $255,500.

Question 7

If the Debit and Credit column totals of a trial balance are equal, then

Accepted Answer

A) All ledger account balances are correct. 
B) All entries from the journal have been posted to the ledger correctly. 
C) The total debit entries and total credit entries in the ledger are equal. 
D) No sliding or transposition errors have been made. 
E) All transactions have been recorded correctly. 
A) All ledger account balances are correct. 
B) All entries from the journal have been posted to the ledger correctly. 
C) The total debit entries and total credit entries in the ledger are equal. 
D) No sliding or transposition errors have been made. 
E) All transactions have been recorded correctly.

Question 8

Unearned revenues are

Accepted Answer

A) Liabilities created by advance cash payments from customers for products or services. 
B) Revenues that have been earned and received. 
C) Revenues that have been earned but not yet collected. 
D) Recorded as an asset in the accounting records. 
E) Increases to owners' equity. 
A) Liabilities created by advance cash payments from customers for products or services. 
B) Revenues that have been earned and received. 
C) Revenues that have been earned but not yet collected. 
D) Recorded as an asset in the accounting records. 
E) Increases to owners' equity.

Question 9

A trial balance that is in balance is proof that no errors were made in journalizing thetransactions, posting to the ledger, and preparing the trial balance.

Accepted Answer

A) True 
 B)False

Question 10

A revenue account normally has a debit balance

Accepted Answer

A) True 
 B)False

Question 11

If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with anentry to:

Accepted Answer

A) Debit Salary Expense and credit Cash. 
B) Debit Cash and credit Girard Don, Withdrawals. 
C) Debit Girard Don, Withdrawals and credit Cash. 
D) Debit Girard Don, Salary and credit Cash. 
E) Debit Girard Don, Capital and credit Cash. 
A) Debit Salary Expense and credit Cash. 
B) Debit Cash and credit Girard Don, Withdrawals. 
C) Debit Girard Don, Withdrawals and credit Cash. 
D) Debit Girard Don, Salary and credit Cash. 
E) Debit Girard Don, Capital and credit Cash.

Question 12

A compound journal entry is

Accepted Answer

A) A journal entry that has three or more debits and three or more credits. 
B) A journal entry involving only two ledger accounts. 
C) A journal entry involving at least two accounting periods. 
D) A journal entry that affects at least three accounts. 
E) A journal entry that affects at least four accounts. 
A) A journal entry that has three or more debits and three or more credits. 
B) A journal entry involving only two ledger accounts. 
C) A journal entry involving at least two accounting periods. 
D) A journal entry that affects at least three accounts. 
E) A journal entry that affects at least four accounts.

Question 13

As prepaid assets are used up, the costs of the assets become expenses

Accepted Answer

A) True 
 B)False

Question 14

Explain the steps in processing transactions in an accounting system

Accepted Answer

Business transactions and events are doc

Question 15

Debits to accounts are normally decreases

Accepted Answer

A) True 
 B)False

Question 16

On June 20, 2015, Lucie Majeau invested the following assets in a new sole   proprietorship: cash, $12,000; office equipment, $6,000; land, $100,000;building, $115,000. Majeau owes the bank a $25,000 note payable that issecured by the land and building. Prepare the general journal entry to recordMajeau's investments in the new business.

Accepted Answer

The answer of On June 20, 2015, Lucie Majeau invested...

Question 17

Explain debits and credits and their role in the accounting system

Accepted Answer

Debit refers to the left side of an acco

Question 18

An unconditional written promise to pay a definite sum of money on demand or on adefined future date (or dates)is a(n):

Accepted Answer

A) Unearned revenue. 
B) Promissory note. 
C) Account payable. 
D) Account receivable. 
E) Prepaid expense. 
A) Unearned revenue. 
B) Promissory note. 
C) Account payable. 
D) Account receivable. 
E) Prepaid expense.

Question 19

Unearned revenues are assets, because a service or product is owed to the customer

Accepted Answer

A) True 
 B)False

Question 20

When a company sells services for which cash will not be received until some future date, the company should credit an unearned revenues account for the amount charged to the customer.

Accepted Answer

A) True 
 B)False

Credits to accounts are always increases

The total dollar value of all debits and credits recorded in a journal entry must be equal

A debit is used to record

The chart of accounts is a list of all the accounts used by a company

The following is a correct journal entry: What is this journal entry recording?

Jelly's Grocery Store showed the following account balances at the end of 2015: If all of the accounts have normal balances, what are the totals for the trial balance?

If the Debit and Credit column totals of a trial balance are equal, then

Unearned revenues are

A trial balance that is in balance is proof that no errors were made in journalizing thetransactions, posting to the ledger, and preparing the trial balance.

A revenue account normally has a debit balance

If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with anentry to:

A compound journal entry is

As prepaid assets are used up, the costs of the assets become expenses

Explain the steps in processing transactions in an accounting system

Debits to accounts are normally decreases

Explain debits and credits and their role in the accounting system

An unconditional written promise to pay a definite sum of money on demand or on adefined future date (or dates)is a(n):

Unearned revenues are assets, because a service or product is owed to the customer

When a company sells services for which cash will not be received until some future date, the company should credit an unearned revenues account for the amount charged to the customer.

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 2: Analyzing and Recording Transactions

Credits to accounts are always increases

The total dollar value of all debits and credits recorded in a journal entry must be equal

A debit is used to record

The chart of accounts is a list of all the accounts used by a company

The following is a correct journal entry: What is this journal entry recording?

Jelly's Grocery Store showed the following account balances at the end of 2015: If all of the accounts have normal balances, what are the totals for the trial balance?

If the Debit and Credit column totals of a trial balance are equal, then

Unearned revenues are

A trial balance that is in balance is proof that no errors were made in journalizing thetransactions, posting to the ledger, and preparing the trial balance.

A revenue account normally has a debit balance

If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with anentry to:

A compound journal entry is

As prepaid assets are used up, the costs of the assets become expenses

Explain the steps in processing transactions in an accounting system

Debits to accounts are normally decreases

Explain debits and credits and their role in the accounting system

An unconditional written promise to pay a definite sum of money on demand or on adefined future date (or dates)is a(n):

Unearned revenues are assets, because a service or product is owed to the customer

When a company sells services for which cash will not be received until some future date, the company should credit an unearned revenues account for the amount charged to the customer.

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters