Question 1

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.a.Credit side
b.Debit side
-Common Stock

Accepted Answer

The answer of For each of the following accounts, indicate...

Question 2

When an owner invests assets in the business, the retained earnings account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Question 3

The Unearned Revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 4

Nebraska Technologies has a condensed income statement as shown:   REQUIRED:
Prepare 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 unfavorab

Question 5

The stockholders' equity will be reduced by all of the following except

Accepted Answer

A) revenues 
B) expenses 
C) dividends 
D) all of these 
A) revenues 
B) expenses 
C) dividends 
D) all of these

Question 6

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

Accepted Answer

A) expense accounts only 
B) dividends accounts only 
C) revenue, common stock, and retained earnings accounts 
D) expense and dividends accounts 
A) expense accounts only 
B) dividends accounts only 
C) revenue, common stock, and retained earnings accounts 
D) expense and dividends accounts

Question 7

Prepaid expenses are an example of an expense.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following entries records the receipt of cash from cash customers for services provided?

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 9

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Accepted Answer

A) Cash, debit; Wages Expense, credit 
B) Wages Payable, debit; Wages Expense, credit 
C) Wages Expense, debit; Cash, credit 
D) Cash, debit; Wages Payable, credit 
A) Cash, debit; Wages Expense, credit 
B) Wages Payable, debit; Wages Expense, credit 
C) Wages Expense, debit; Cash, credit 
D) Cash, debit; Wages Payable, credit

Question 10

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A) decrease Prepaid Insurance with a credit and the normal balance is a credit 
B) increase Accounts Payable with a credit and the normal balance is a debit 
C) increase Equipment with a debit and the normal balance is a debit 
D) decrease Cash with a debit and the normal balance is a credit 
A) decrease Prepaid Insurance with a credit and the normal balance is a credit 
B) increase Accounts Payable with a credit and the normal balance is a debit 
C) increase Equipment with a debit and the normal balance is a debit 
D) decrease Cash with a debit and the normal balance is a credit

Question 11

Even when a trial balance is in balance, there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

Accepted Answer

Oct. 12
Accounts Rec

Question 14

Faso Fabricating, Inc. and Spinoza Fabrication Corp. are in the same industry and are located in the same region of the country. They have condensed income statements as shown.   Using horizontal analysis, calculate the percent change for sales for each company. Round percentages to one decimal place.

Accepted Answer

A) Faso: 27.5%; Spinoza: 27.8% 
B) Faso: 6.6%; Spinoza: 6.4% 
C) Faso: 7.1%; Spinoza: 6.8% 
D) Faso: 16.3%; Spinoza: 7.0% 
A) Faso: 27.5%; Spinoza: 27.8% 
B) Faso: 6.6%; Spinoza: 6.4% 
C) Faso: 7.1%; Spinoza: 6.8% 
D) Faso: 16.3%; Spinoza: 7.0%

Exam 2: Analyzing Transactions

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.a.Credit side b.Debit side -Common Stock

When an owner invests assets in the business, the retained earnings account increases due to revenue being earned.

The Unearned Revenues account is an example of a liability.

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

The stockholders' equity will be reduced by all of the following except

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

Prepaid expenses are an example of an expense.

Which of the following entries records the receipt of cash from cash customers for services provided?

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Which of the following applications of the rules of debit and credit is true?

Even when a trial balance is in balance, there may be errors in the individual accounts.

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

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

Introduction to Accounting and Business

The Adjusting Process

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

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