Question 1

A debit signifies a decrease in

Accepted Answer

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

Question 2

Journalizing always eliminates fraudulent activity.

Accepted Answer

A) True 
 B)False

Question 3

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 4

Below is the unadjusted trial balance for Dawson Designs.REQUIRED:
(1) Identify the errors in the trial balance. All accounts have normal balances.(2) Prepare a corrected trial balance.

Accepted Answer

(1)a. The debit column is added incorrec

Question 5

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to confirm this suspicion?

Accepted Answer

A) Determine the amount of the error and look for that amount on the trial balance. 
B) Determine the amount of the error and divide by two, then look for that amount on the trial balance. 
C) Determine the amount of the error and refer to the journal entries for that amount. 
D) Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely. 
A) Determine the amount of the error and look for that amount on the trial balance. 
B) Determine the amount of the error and divide by two, then look for that amount on the trial balance. 
C) Determine the amount of the error and refer to the journal entries for that amount. 
D) Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely.

Question 6

Accounts are records of increases and decreases in individual accounting equation elements.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following groups of accounts are increased with a debit?

Accepted Answer

A) assets, liabilities, stockholders' equity 
B) assets, dividends, expenses 
C) assets, revenues, expenses 
D) assets, liabilities, revenues 
A) assets, liabilities, stockholders' equity 
B) assets, dividends, expenses 
C) assets, revenues, expenses 
D) assets, liabilities, revenues

Question 8

Which of the following is true about T accounts?

Accepted Answer

A) The left side of a T account is called the debit side. 
B) The left side of a T account is called the credit side. 
C) The right side of a T account is called the debit side. 
D) Transactions are first recorded in T accounts and then posted to the journal. 
A) The left side of a T account is called the debit side. 
B) The left side of a T account is called the credit side. 
C) The right side of a T account is called the debit side. 
D) Transactions are first recorded in T accounts and then posted to the journal.

Question 9

The recording of cash receipts to the cash account will be done by debiting the account.

Accepted Answer

A) True 
 B)False

Question 10

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 net income for each company. Round percentages to one decimal place.

Accepted Answer

A) Faso: −17.2%; Spinoza: −6.4% 
B) Faso: −17.2%; Spinoza: 6.4% 
C) Faso: 17.2%; Spinoza: −6.4% 
D) Faso: 17.2%; Spinoza: 6.4% 
A) Faso: −17.2%; Spinoza: −6.4% 
B) Faso: −17.2%; Spinoza: 6.4% 
C) Faso: 17.2%; Spinoza: −6.4% 
D) Faso: 17.2%; Spinoza: 6.4%

Question 11

Several transactions are listed below, with the accounting equation stated to the right side of each. Use the following identification codes to indicate the effects of each transaction on the accounting equation. Write your answers in the space provided under the accounting equation. You need an identification code for each element of the accounting equation. An example is given before the first transaction.

Accepted Answer

The answer of Several transactions are listed below, with the...

Question 12

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30.

Accepted Answer

(a)(1)In the heading, the date should be

Question 13

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Accepted Answer

A) Prepaid Rent, debit; Rent Revenue, credit. 
B) Cash, debit; Unearned Rent, credit. 
C) Cash, debit; Prepaid Rent, credit. 
D) Cash, debit; Rent Expense, credit. 
A) Prepaid Rent, debit; Rent Revenue, credit. 
B) Cash, debit; Unearned Rent, credit. 
C) Cash, debit; Prepaid Rent, credit. 
D) Cash, debit; Rent Expense, credit.

Question 14

Expense accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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

Question 16

To determine the balance in an account, always subtract credits from debits.

Accepted Answer

A) True 
 B)False

Question 17

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 18

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following entries records the acquisition of office supplies on account?

Accepted Answer

A) Office Supplies, debit; Cash, credit 
B) Cash, debit; Office Supplies, credit 
C) Office Supplies, debit; Accounts Payable, credit 
D) Accounts Receivable, debit; Office Supplies, credit 
A) Office Supplies, debit; Cash, credit 
B) Cash, debit; Office Supplies, credit 
C) Office Supplies, debit; Accounts Payable, credit 
D) Accounts Receivable, debit; Office Supplies, credit

Question 20

The chart of accounts should be the same for each business.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

A debit signifies a decrease in

Journalizing always eliminates fraudulent activity.

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

Below is the unadjusted trial balance for Dawson Designs.REQUIRED: (1) Identify the errors in the trial balance. All accounts have normal balances.(2) Prepare a corrected trial balance.

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to confirm this suspicion?

Accounts are records of increases and decreases in individual accounting equation elements.

Which of the following groups of accounts are increased with a debit?

Which of the following is true about T accounts?

The recording of cash receipts to the cash account will be done by debiting the account.

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30.

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Expense accounts are increased by credits.

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

To determine the balance in an account, always subtract credits from debits.

A transaction that is recorded in the journal is called a journal entry.

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Which of the following entries records the acquisition of office supplies on account?

The chart of accounts should be the same for each business.

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. -Prepaid Insurance A)Assets B)Liabilities C)Stockholders' Equity D)Revenue E)Expenses