Question 1

The sunglasses Hut pays wages in the amount of $13,579. Provide the transaction details.

Accepted Answer

Debits Wag

Question 2

The difference between the total debits and total credits of an account is called a:

Accepted Answer

A)  trial balance. 
B)  sub-total. 
C)  ruling. 
D)  balance. 
E)  normal balance. 
A)  trial balance. 
B)  sub-total. 
C)  ruling. 
D)  balance. 
E)  normal balance.

Question 3

The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:

Accepted Answer

A)  single-entry accounting. 
B)  double-entry accounting. 
C)  compound-entry accounting. 
D)  multiple-entry accounting. 
E)  re-allocation of accounting. 
A)  single-entry accounting. 
B)  double-entry accounting. 
C)  compound-entry accounting. 
D)  multiple-entry accounting. 
E)  re-allocation of accounting.

Question 4

Emily Ma started an Energy Saving Service in June 2013. The account balances on June 30, 2013 are provided below. All accounts have normal balances. One hundred (100) common shares were issued in June 2013.
   
Requirements
Prepare Emily's statement of financial position for June 30, 2013.

Accepted Answer

Emily's Energy Savin

Question 5

Which of the following would start with a 1 in the chart of accounts?

Accepted Answer

A)  Land and buildings 
B)  Depreciation expense and marketing expense 
C)  Merchandise sales and rent revenue 
D)  Common shares and cash 
E)  Accounts Payable and Notes Payable 
A)  Land and buildings 
B)  Depreciation expense and marketing expense 
C)  Merchandise sales and rent revenue 
D)  Common shares and cash 
E)  Accounts Payable and Notes Payable

Question 6

A T-account has a $759 debit balance. This account is most likely:

Accepted Answer

A)  accounts payable. 
B)  sales revenue. 
C)  accounts receivable. 
D)  common share. 
E)  notes payable. 
A)  accounts payable. 
B)  sales revenue. 
C)  accounts receivable. 
D)  common share. 
E)  notes payable.

Question 7

Transactions are recorded in order of the dollar amount of the transaction.

Accepted Answer

A) True 
 B)False

Question 8

Complete the chart below.
For each of the general ledger accounts, identify:
a) the type of account (Asset, Liability, Shareholders Equity, Revenue, or Expense)
b) the effect of an increase (debit or credit)
c) the normal account balance

Accepted Answer

The answer of Complete the chart below.
For each of the...

Question 9

Expenses paid in advance such as rent and insurance are classified as prepaid expenses. Into what category are they placed?

Accepted Answer

The answer of Expenses paid in advance such as rent...

Question 10

A T-account is a way to visualize the increases and decreases to the value of an account.

Accepted Answer

A) True 
 B)False

Question 11

What is the normal account balance for revenue, accounts receivable, and common shares?

Accepted Answer

credit, de

Question 12

Once the trial balance is correct, the next step is to prepare the financial statements, beginning with the income statement.

Accepted Answer

A) True 
 B)False

Question 13

Once you post the transaction to the general ledger, you must go back to the general journal and fill in:

Accepted Answer

A)  the date. 
B)  the amount debited or credited. 
C)  the posting reference column with the account number of the posting. 
D)  the account name that was involved in the transaction. 
E)  the dollar value. 
A)  the date. 
B)  the amount debited or credited. 
C)  the posting reference column with the account number of the posting. 
D)  the account name that was involved in the transaction. 
E)  the dollar value.

Question 14

The act of recording a transaction is called "journalizing".

Accepted Answer

A) True 
 B)False

Question 15

Salary expenses of $675 were paid in cash. The journal entry would include a __________.

Accepted Answer

debit to salary expe

Question 16

Chronological order dictates the order in which transactions are journalized.

Accepted Answer

A) True 
 B)False

Question 17

The general journal was developed to organize transactions by account.

Accepted Answer

A) True 
 B)False

Question 18

If debits equal credits on the trial balance, it means that the trial balance is correct.

Accepted Answer

A) True 
 B)False

Question 19

Freddy's Fir Tree Company is a new business. The following accounts are required in the general ledger.
   
Organize the accounts into the order in which they should appear in the general ledger of Freddy's Fir Tree Company and assign account numbers.
Use the following system to assign account numbers.
1000-1999 Assets
2000-2999 Liabilities
3000-3999 Shareholder's equity account
4000-4999 Revenues
5000-5999 Expenses

Accepted Answer

There are several possible correct accou

Question 20

Dividends are paid with cash to shareholders. Dividends are in what category of the chart of accounts?

Accepted Answer

A)  Revenue 
B)  Assets 
C)  Shareholders' Equity 
D)  Liabilities 
E)  Revenue. 
A)  Revenue 
B)  Assets 
C)  Shareholders' Equity 
D)  Liabilities 
E)  Revenue.

The sunglasses Hut pays wages in the amount of $13,579. Provide the transaction details.

The difference between the total debits and total credits of an account is called a:

The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:

Emily Ma started an Energy Saving Service in June 2013. The account balances on June 30, 2013 are provided below. All accounts have normal balances. One hundred (100) common shares were issued in June 2013. Requirements Prepare Emily's statement of financial position for June 30, 2013.

Which of the following would start with a 1 in the chart of accounts?

A T-account has a $759 debit balance. This account is most likely:

Transactions are recorded in order of the dollar amount of the transaction.

Complete the chart below. For each of the general ledger accounts, identify: a) the type of account (Asset, Liability, Shareholders Equity, Revenue, or Expense) b) the effect of an increase (debit or credit) c) the normal account balance

Expenses paid in advance such as rent and insurance are classified as prepaid expenses. Into what category are they placed?

A T-account is a way to visualize the increases and decreases to the value of an account.

What is the normal account balance for revenue, accounts receivable, and common shares?

Once the trial balance is correct, the next step is to prepare the financial statements, beginning with the income statement.

Once you post the transaction to the general ledger, you must go back to the general journal and fill in:

The act of recording a transaction is called "journalizing".

Salary expenses of $675 were paid in cash. The journal entry would include a __________.

Chronological order dictates the order in which transactions are journalized.

The general journal was developed to organize transactions by account.

If debits equal credits on the trial balance, it means that the trial balance is correct.

Dividends are paid with cash to shareholders. Dividends are in what category of the chart of accounts?

Business, Accounting, and You

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters

Exam 2: Analyzing and Recording Business Transactions

The sunglasses Hut pays wages in the amount of $13,579. Provide the transaction details.

The difference between the total debits and total credits of an account is called a:

The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:

Emily Ma started an Energy Saving Service in June 2013. The account balances on June 30, 2013 are provided below. All accounts have normal balances. One hundred (100) common shares were issued in June 2013. Requirements Prepare Emily's statement of financial position for June 30, 2013.

Which of the following would start with a 1 in the chart of accounts?

A T-account has a $759 debit balance. This account is most likely:

Transactions are recorded in order of the dollar amount of the transaction.

Complete the chart below. For each of the general ledger accounts, identify: a) the type of account (Asset, Liability, Shareholders Equity, Revenue, or Expense) b) the effect of an increase (debit or credit) c) the normal account balance

Expenses paid in advance such as rent and insurance are classified as prepaid expenses. Into what category are they placed?

A T-account is a way to visualize the increases and decreases to the value of an account.

What is the normal account balance for revenue, accounts receivable, and common shares?

Once the trial balance is correct, the next step is to prepare the financial statements, beginning with the income statement.

Once you post the transaction to the general ledger, you must go back to the general journal and fill in:

The act of recording a transaction is called "journalizing".

Salary expenses of $675 were paid in cash. The journal entry would include a __________.

Chronological order dictates the order in which transactions are journalized.

The general journal was developed to organize transactions by account.

If debits equal credits on the trial balance, it means that the trial balance is correct.

Dividends are paid with cash to shareholders. Dividends are in what category of the chart of accounts?

Business, Accounting, and You

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters