Question 1

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n):

Accepted Answer

A) chart of accounts 
B) trial balance 
C) income statement 
D) balance sheet 
A) chart of accounts 
B) trial balance 
C) income statement 
D) balance sheet

Question 2

The chart of accounts is designed to

Accepted Answer

A) alphabetize the accounts to make reading easier for financial statement users 
B) organize accounts in order of dollar amount to simplify the accounting information for users 
C) summarize the transactions and determine ending account balances 
D) meet the information needs of a company's managers and other users of its financial statements 
A) alphabetize the accounts to make reading easier for financial statement users 
B) organize accounts in order of dollar amount to simplify the accounting information for users 
C) summarize the transactions and determine ending account balances 
D) meet the information needs of a company's managers and other users of its financial statements

Question 3

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 4

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 prepaid insurance account?

Accepted Answer

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

Question 5

The payment for the monthly rent will require which of the following entries?

Accepted Answer

A) debit Cash and debit Rent Expense 
B) credit Cash and credit Rent Expense 
C) debit Rent Expense and credit Cash 
D) credit Rent Expense and debit Cash 
A) debit Cash and debit Rent Expense 
B) credit Cash and credit Rent Expense 
C) debit Rent Expense and credit Cash 
D) credit Rent Expense and debit Cash

Question 6

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following will increase stockholders' equity?

Accepted Answer

A) expenses > revenues 
B) the company pays dividends 
C) revenues > expenses 
D) cash is received from customers on account 
A) expenses > revenues 
B) the company pays dividends 
C) revenues > expenses 
D) cash is received from customers on account

Question 8

On October 1, the accounts receivable account balance was $208,400. During October, $298,500 was collected from customers on account. Assuming the October 31 balance was $125,300, determine the fees billed to customers on account during October.

Accepted Answer

$208,400 + ??? − $298,500 = $1

Question 9

In a basic chart of accounts, each account number has two digits. The first digit indicates the major account group to which the account belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

Accepted Answer

A) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Expenses, 5-Revenues 
B) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Revenues, 5-Expenses 
C) 1-Assets, 2-Stockholders' Equity, 3-Revenues, 4-Expenses, 5-Dividends 
D) 1-Stockholders' Equity, 2-Dividends, 3-Revenues, 4-Expenses, 5-Common Stock 
A) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Expenses, 5-Revenues 
B) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Revenues, 5-Expenses 
C) 1-Assets, 2-Stockholders' Equity, 3-Revenues, 4-Expenses, 5-Dividends 
D) 1-Stockholders' Equity, 2-Dividends, 3-Revenues, 4-Expenses, 5-Common Stock

Question 10

The increases in stockholders' equity attributable to selling services or products to customers are called

Accepted Answer

A) assets 
B) liabilities 
C) revenues 
D) expenses 
A) assets 
B) liabilities 
C) revenues 
D) expenses

Question 11

A dividends account represents the amount of earnings paid to the stockholders.

Accepted Answer

A) True 
 B)False

Question 12

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Balance entered on wrong side of account.
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 13

Which statement(s) concerning cash is (are) true?

Accepted Answer

A) cash will always have more debits than credits 
B) cash will never have a credit balance 
C) cash is increased with a debit 
D) all are true 
A) cash will always have more debits than credits 
B) cash will never have a credit balance 
C) cash is increased with a debit 
D) all are true

Question 14

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 15

The increase side of an account is also the side of the normal balance.

Accepted Answer

A) True 
 B)False

Question 16

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:

Accepted Answer

A) credit to Accounts Receivable for $500 
B) credit to Accounts Receivable for $1,000 
C) credit to Accounts Payable for $500 
D) credit to Accounts Payable for $1,000 
A) credit to Accounts Receivable for $500 
B) credit to Accounts Receivable for $1,000 
C) credit to Accounts Payable for $500 
D) credit to Accounts Payable for $1,000

Question 17

Accounts in the ledger are usually maintained in alphabetical order.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following groups of accounts increase with a credit?

Accepted Answer

A) common stock, revenues, expenses 
B) assets, common stock, revenues 
C) liabilities, common stock, revenues 
D) none of these 
A) common stock, revenues, expenses 
B) assets, common stock, revenues 
C) liabilities, common stock, revenues 
D) none of these

Question 19

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Amount incorrectly entered on trial balance.
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

The process of recording a transaction in the journal is called

Accepted Answer

A) balancing 
B) journalizing 
C) posting 
D) summarizing 
A) balancing 
B) journalizing 
C) posting 
D) summarizing

Exam 2: Analyzing Transactions

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n):

The chart of accounts is designed to

Transactions are listed in the journal chronologically.

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 prepaid insurance account?

The payment for the monthly rent will require which of the following entries?

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Which of the following will increase stockholders' equity?

On October 1, the accounts receivable account balance was $208,400. During October, $298,500 was collected from customers on account. Assuming the October 31 balance was $125,300, determine the fees billed to customers on account during October.

In a basic chart of accounts, each account number has two digits. The first digit indicates the major account group to which the account belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

The increases in stockholders' equity attributable to selling services or products to customers are called

A dividends account represents the amount of earnings paid to the stockholders.

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Balance entered on wrong side of account. A)Trial balance preparation errors B)Account balance errors C)Posting errors

Which statement(s) concerning cash is (are) true?

Liabilities are debts owed by the business entity.

The increase side of an account is also the side of the normal balance.

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:

Accounts in the ledger are usually maintained in alphabetical order.

Which of the following groups of accounts increase with a credit?

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

The process of recording a transaction in the journal is called

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

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 prepaid insurance account?