Exam 2: Transaction Analysis

When the trial balance is out of balance due to a transposition error, the difference between total debits and total credits will be evenly divisible by 2.

The journal entry to record performing a service on account would include a debit to:

A company purchased office supplies for cash. This transaction increased assets and:

A journal entry is an event that has a financial impact on the business that can be reliably measured.

Accrued Liabilities is a liability account.

The normal balance of the Accounts Payable account is a because it is an) account.

A trial balance prepared by an inexperienced accountant showed total debits of $360,000 and total credits of $36,000. This discrepancy is most likely due to which type of error?

Dividends and expenses are specialized owners' equity accounts that are increased by debits.

Which of the following accounts are a standard component of stockholders' equity?

Liabilities and revenues are decreased by credits.

The normal balance of the Common Stock account is a because it increases .

The normal balance of the Supplies account is a because it is an)account.

A chart of accounts is organized in the alphabetical order of the accounting equation-with assets first, followed by expenses, liabilities, owners' equity, and revenues-because using numbers can be very complicated.

An account with a normal balance of a debit indicates that the account is a liability account.

An account with a normal credit balance is most often a liability or stockholders' equity account.

The owner of a business paid cash from his personal checking account to purchase an automobile for his personal use. This transaction:

The normal balance of Accounts Receivable is a because it is an)account.

Which elements)of an accounting system provides)information about the balance in each account?

Prepaid expense accounts appear on:

Receiving a check from a customer on account would include a credit to: