Question 1

Credits

Accepted Answer

A)  decrease both assets and liabilities. 
B)  decrease assets and increase liabilities. 
C)  increase both assets and liabilities. 
D)  increase assets and decrease liabilities. 
A)  decrease both assets and liabilities. 
B)  decrease assets and increase liabilities. 
C)  increase both assets and liabilities. 
D)  increase assets and decrease liabilities.

Question 2

If a company has overdrawn its bank balance, then

Accepted Answer

A)  its cash account will show a debit balance. 
B)  its cash account will show a credit balance. 
C)  the cash account debits will exceed the cash account credits. 
D)  it cannot be detected by observing the balance of the cash account. 
A)  its cash account will show a debit balance. 
B)  its cash account will show a credit balance. 
C)  the cash account debits will exceed the cash account credits. 
D)  it cannot be detected by observing the balance of the cash account.

Question 3

The four subdivisions of stockholders' equity are: ________________, ________________, ________________, and ________________.

Accepted Answer

common sto

Question 4

Which one of the following is not a part of an account?

Accepted Answer

A)  Credit side 
B)  Trial balance 
C)  Debit side 
D)  Title 
A)  Credit side 
B)  Trial balance 
C)  Debit side 
D)  Title

Question 5

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Accepted Answer

A)  no errors have been made. 
B)  no errors can be discovered. 
C)  that all accounts reflect correct balances. 
D)  the mathematical equality of the accounting equation. 
A)  no errors have been made. 
B)  no errors can be discovered. 
C)  that all accounts reflect correct balances. 
D)  the mathematical equality of the accounting equation.

Question 6

A simple journal entry requires only one debit to an account and one credit to an account.

Accepted Answer

A) True 
 B)False

Question 7

An account will have a credit balance if the

Accepted Answer

A)  credits exceed the debits. 
B)  first transaction entered was a credit. 
C)  debits exceed the credits. 
D)  last transaction entered was a credit. 
A)  credits exceed the debits. 
B)  first transaction entered was a credit. 
C)  debits exceed the credits. 
D)  last transaction entered was a credit.

Question 8

The entire group of accounts and their balances maintained by a company is called the ________________.

Accepted Answer

general le

Question 9

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

Accepted Answer

A) True 
 B)False

Question 10

Some of the following errors would cause the debit and credit columns of the trial balance to have unequal totals. For each of the four cases, state whether the error would cause unequal totals in the trial balance. If the error causes unequal totals, indicate the amount of difference between the columns and state whether the debit or credit is larger. Each case is to be considered independently of the others.
1. A payment of $500 to a creditor was recorded by a debit to Accounts Payable of $50 and a credit to Cash of $500.
2. A $480 payment for a printer was recorded by a debit to Equipment of $48 and a credit to Cash for $48.
3. An account receivable in the amount of $2,500 was collected in full. The collection was recorded by a debit to Cash for $2,500 and a debit to Accounts Payable for $2,500.
4. An account payable was paid by issuing a check for $800. The payment was recorded by debiting Accounts Payable $800 and crediting Accounts Receivable $800.

Accepted Answer

1. The trial balance totals will be uneq

Question 11

Which of the following rules is incorrect?

Accepted Answer

A)  Credits decrease the dividends account. 
B)  Debits increase the common stock account. 
C)  Credits increase revenue accounts. 
D)  Debits decrease liability accounts. 
A)  Credits decrease the dividends account. 
B)  Debits increase the common stock account. 
C)  Credits increase revenue accounts. 
D)  Debits decrease liability accounts.

Question 12

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

Question 13

For each of the following transactions of Neon Garden, identify the account to be debited and the account to be credited.
1. Purchased 18-month insurance policy for cash.
2. Paid weekly payroll.
3. Purchased supplies on account.
4. Received utility bill to be paid at later date.

Accepted Answer

\[\begin{array} { c c c } 
\text { Trans

Question 14

A compound journal entry requires several debits to one account and several credits to one account.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true?

Accepted Answer

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

Question 16

The standard format of a journal would not include

Accepted Answer

A)  a reference column. 
B)  an account title column. 
C)  a T-account. 
D)  a date column. 
A)  a reference column. 
B)  an account title column. 
C)  a T-account. 
D)  a date column.

Question 17

On June 1, 2018, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

Accepted Answer

A)  $3,000 debit balance 
B)  $17,000 debit balance 
C)  $3,000 credit balance 
D)  $2,000 credit balance 
A)  $3,000 debit balance 
B)  $17,000 debit balance 
C)  $3,000 credit balance 
D)  $2,000 credit balance

Question 18

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31, 2018. $$\begin{array} { l r l r } 
\text { Accounts Payable } & \$ 1,100 & \text { Rent Expense } & \$ 500 \
\text { Accounts Receivable } & 1,700 & \text { Service Revenue } & 3,000 \
\text { Cash } & 1,400 & \text { Supplies } & 200 \
\text { Common stock } & 2,000 & \text { Salaries and Wages Expense } & 1,300 \
\text { Dividends } & 1,000 & &
\end{array}$$

Accepted Answer

None

Question 19

When two accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A)  balanced entry. 
B)  simple entry. 
C)  posting. 
D)  nominal entry. 
A)  balanced entry. 
B)  simple entry. 
C)  posting. 
D)  nominal entry.

Question 20

Posting is the process of proving the equality of debits and credits in the trial balance.

Accepted Answer

A) True 
 B)False

Exam 2: The Recording Process

Credits

If a company has overdrawn its bank balance, then

The four subdivisions of stockholders' equity are: ________________, ________________, ________________, and ________________.

Which one of the following is not a part of an account?

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

A simple journal entry requires only one debit to an account and one credit to an account.

An account will have a credit balance if the

The entire group of accounts and their balances maintained by a company is called the ________________.

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

Which of the following rules is incorrect?

The normal balance of all accounts is a debit.

For each of the following transactions of Neon Garden, identify the account to be debited and the account to be credited. 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date.

A compound journal entry requires several debits to one account and several credits to one account.

Which of the following statements is true?

The standard format of a journal would not include

On June 1, 2018, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31, 2018. Accounts Payable \ 1,100 Rent Expense \ 500 Accounts Receivable 1,700 Service Revenue 3,000 Cash 1,400 Supplies 200 Common stock 2,000 Salaries and Wages Expense 1,300 Dividends 1,000

When two accounts are required in one journal entry, the entry is referred to as a

Posting is the process of proving the equality of debits and credits in the trial balance.

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Payroll Accounting

Subsidiary Ledgers and Special Journals

Other Significant Liabilities

Filters

The four subdivisions of stockholders' equity are: , , , and .