Question 1

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Accepted Answer

A) True 
 B)False

Question 2

The classification and normal balance of the dividends account is

Accepted Answer

A) an expense with a credit balance 
B) an expense with a debit balance 
C) a liability with a credit balance 
D) stockholders' equity with a debit balance 
A) an expense with a credit balance 
B) an expense with a debit balance 
C) a liability with a credit balance 
D) stockholders' equity with a debit balance

Question 3

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

Accepted Answer

A) $15,500, 19.6% 
B) ($15,500), (10.3%) 
C) $15,500, 10.3% 
D) ($15,500), (9.4%) 
A) $15,500, 19.6% 
B) ($15,500), (10.3%) 
C) $15,500, 10.3% 
D) ($15,500), (9.4%)

Question 4

The Posting Reference columns are used to trace transactions from the accounts to the journal. What will be entered in the Posting Reference column of (1) the journal and (2) the account?

Accepted Answer

A) (1) the amount of the debit or credit and (2) the journal page number 
B) (1) the journal page number and (2) the date of the transaction 
C) (1) the journal page number and (2) the account number 
D) (1) the account number and (2) the journal page number 
A) (1) the amount of the debit or credit and (2) the journal page number 
B) (1) the journal page number and (2) the date of the transaction 
C) (1) the journal page number and (2) the account number 
D) (1) the account number and (2) the journal page number

Question 5

When an account receivable is collected in cash, the total assets of the business increase.

Accepted Answer

A) True 
 B)False

Question 6

An account in its simplest form has three parts to it: a title, an increase side, and a decrease side.

Accepted Answer

A) True 
 B)False

Question 7

The classification and normal balance of the accounts payable account is

Accepted Answer

A) an asset with a credit balance 
B) a liability with a credit balance 
C) stockholders' equity with a credit balance 
D) revenue with a credit balance 
A) an asset with a credit balance 
B) a liability with a credit balance 
C) stockholders' equity with a credit balance 
D) revenue with a credit balance

Question 8

Assets are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 9

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Trial balance column incorrectly added.
A)Trial balance preparation errors
B)Account balance errors
C)Posting errors

Accepted Answer

The answer of Several types of errors can be made...

Question 10

Match each of the following accounts with its proper account group from groups listed below.​
-Dividends
A)Assets
B)Liabilities
C)Stockholders' Equity
D)Revenue
E)Expenses

Accepted Answer

The answer of Match each of the following accounts with...

Question 11

Match each of the following accounts with its proper account group from groups listed below.​
-Unearned Rent
A)Assets
B)Liabilities
C)Stockholders' Equity
D)Revenue
E)Expenses

Accepted Answer

The answer of Match each of the following accounts with...

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The chart of accounts for the Corning Company includes the following:   Page 3 of the journal contains the following entry:   Use the above information to answer the questions that follow.​
-What is the posting reference that will be found in the cash account?

Accepted Answer

A) 11 
B) 15 
C) 3 
D) 13 
A) 11 
B) 15 
C) 3 
D) 13

Question 14

A journal with a debit and credit column for recording transactions is known as a

Accepted Answer

A) debit and credit journal 
B) normal journal 
C) two-column journal 
D) summary journal 
A) debit and credit journal 
B) normal journal 
C) two-column journal 
D) summary journal

Question 15

A debit may signify a(n)

Accepted Answer

A) decrease in asset accounts 
B) decrease in liability accounts 
C) increase in the common stock account 
D) decrease in the dividends account 
A) decrease in asset accounts 
B) decrease in liability accounts 
C) increase in the common stock account 
D) decrease in the dividends account

Question 16

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.   (a) Prepare a horizontal analysis for the two companies.(b) Analyze the changes from Year 1 to Year 2 for both companies.

Accepted Answer

(a) @#IMG-DLM& (b) Faso had the slightly higher pe

Question 17

In which of the following types of accounts are decreases recorded by credits?

Accepted Answer

A) liabilities 
B) stockholders' equity 
C) assets 
D) revenues 
A) liabilities 
B) stockholders' equity 
C) assets 
D) revenues

Question 18

Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

A) Cash, debit; Common Stock, credit 
B) Accounts Payable, debit; Cash, credit 
C) Accounts Receivable, debit; Cash, credit 
D) Accounts Payable, debit; Accounts Receivable, credit 
A) Cash, debit; Common Stock, credit 
B) Accounts Payable, debit; Cash, credit 
C) Accounts Receivable, debit; Cash, credit 
D) Accounts Payable, debit; Accounts Receivable, credit

Question 19

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Debit posted as credit, or vice versa.
A)Trial balance preparation errors
B)Account balance errors
C)Posting errors

Accepted Answer

The answer of Several types of errors can be made...

Question 20

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

Accepted Answer

@#IMG-DLM& While the trend in sales reve

Exam 2: Analyzing Transactions

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

The classification and normal balance of the dividends account is

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

The Posting Reference columns are used to trace transactions from the accounts to the journal. What will be entered in the Posting Reference column of (1) the journal and (2) the account?

When an account receivable is collected in cash, the total assets of the business increase.

An account in its simplest form has three parts to it: a title, an increase side, and a decrease side.

The classification and normal balance of the accounts payable account is

Assets are increased with debits and decreased with credits.

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Trial balance column incorrectly added. A)Trial balance preparation errors B)Account balance errors C)Posting errors

Match each of the following accounts with its proper account group from groups listed below.​ -Dividends A)Assets B)Liabilities C)Stockholders' Equity D)Revenue E)Expenses

Match each of the following accounts with its proper account group from groups listed below.​ -Unearned Rent A)Assets B)Liabilities C)Stockholders' Equity D)Revenue E)Expenses

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

The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: Use the above information to answer the questions that follow.​ -What is the posting reference that will be found in the cash account?

A journal with a debit and credit column for recording transactions is known as a

A debit may signify a(n)

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. (a) Prepare a horizontal analysis for the two companies.(b) Analyze the changes from Year 1 to Year 2 for both companies.

In which of the following types of accounts are decreases recorded by credits?

Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Debit posted as credit, or vice versa. A)Trial balance preparation errors B)Account balance errors C)Posting errors

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

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

Filters

Match each of the following accounts with its proper account group from groups listed below. -Dividends A)Assets B)Liabilities C)Stockholders' Equity D)Revenue E)Expenses

Match each of the following accounts with its proper account group from groups listed below. -Unearned Rent A)Assets B)Liabilities C)Stockholders' Equity D)Revenue E)Expenses

The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: Use the above information to answer the questions that follow. -What is the posting reference that will be found in the cash account?