Question 1

Double-entry accounting requires that every business transaction impact at least two different accounts.

Accepted Answer

A) True 
 B)False

Question 2

Journalizing is the transfer of information from the general journal to the general ledger.

Accepted Answer

A) True 
 B)False

Question 3

The account "Cash" began with a zero balance and then had the following changes: increase of $280, decrease of $90, increase of $125 and a decrease of $40. The final balance is a:

Accepted Answer

A) debit balance of $275. 
B) credit balance of $275. 
C) debit balance of $405. 
D) credit balance of $130. 
A) debit balance of $275. 
B) credit balance of $275. 
C) debit balance of $405. 
D) credit balance of $130.

Question 4

An account starting with a number 1 would indicate:

Accepted Answer

A) an asset. 
B) Stockholders' Equity. 
C) a revenue. 
D) a liability. 
A) an asset. 
B) Stockholders' Equity. 
C) a revenue. 
D) a liability.

Question 5

Which is NOT a part of Stockholders' Equity?

Accepted Answer

A) Revenues 
B) Expenses 
C) Accounts Receivable 
D) Dividends 
A) Revenues 
B) Expenses 
C) Accounts Receivable 
D) Dividends

Question 6

A cash payment was made to pay for delivery expenses, but was mistakenly charged to Advertising Expense. What effect will this have on the trial balance?

Accepted Answer

A) Advertising Expense will be understated. 
B) Delivery Expense will be overstated. 
C) The trial balance will still balance. 
D) Cash will be overstated. 
A) Advertising Expense will be understated. 
B) Delivery Expense will be overstated. 
C) The trial balance will still balance. 
D) Cash will be overstated.

Question 7

The third step in recording a transaction in the general journal is to record the:

Accepted Answer

A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s). 
A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s).

Question 8

The ___________ account tracks a company's cumulative earnings less dividends.

Accepted Answer

A) Retained Earnings 
B) Cash 
C) Common Stock 
D) Revenues 
A) Retained Earnings 
B) Cash 
C) Common Stock 
D) Revenues

Question 9

The trial balance:

Accepted Answer

A) lists only the accounts, with their balances, which are used to prepare the Balance Sheet. 
B) lists only the accounts, with their balances, which are used to prepare the Income Statement. 
C) lists account names but no balances. 
D) lists all accounts, with their balances, on a given date. 
A) lists only the accounts, with their balances, which are used to prepare the Balance Sheet. 
B) lists only the accounts, with their balances, which are used to prepare the Income Statement. 
C) lists account names but no balances. 
D) lists all accounts, with their balances, on a given date.

Question 10

Chronological order dictates the order in which transactions are journalized.

Accepted Answer

A) True 
 B)False

Question 11

A T-account has a $312 credit balance. This account is most likely NOT:

Accepted Answer

A) Accounts Receivable. 
B) Bicycle Repair Revenue. 
C) Wages Payable. 
D) Common Stock. 
A) Accounts Receivable. 
B) Bicycle Repair Revenue. 
C) Wages Payable. 
D) Common Stock.

Question 12

The posting reference column of the general journal will include the number of the account to which the information is being posted.

Accepted Answer

A) True 
 B)False

Question 13

Accounts starting with the number 4 would represent:

Accepted Answer

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

Question 14

The first step in analyzing a transaction is to determine:

Accepted Answer

A) if the account balance will increase or decrease. 
B) the accounts that are involved. 
C) the type of accounts that are involved. 
D) which accounts are to be debited and credited. 
A) if the account balance will increase or decrease. 
B) the accounts that are involved. 
C) the type of accounts that are involved. 
D) which accounts are to be debited and credited.

Question 15

The ________ keeps a running balance of an individual account.

Accepted Answer

A) general journal 
B) Balance Sheet 
C) general ledger 
D) posting reference 
A) general journal 
B) Balance Sheet 
C) general ledger 
D) posting reference

Question 16

Mozart Co. sold season tickets for $5,500 on account. The journal entry would be to:

Accepted Answer

A) debit Cash and credit season Ticket Sales Revenue. 
B) debit Accounts Receivable and credit season Ticket Sales Revenue. 
C) debit Cash and credit Accounts Payable. 
D) debit Cash and credit Accounts Receivable. 
A) debit Cash and credit season Ticket Sales Revenue. 
B) debit Accounts Receivable and credit season Ticket Sales Revenue. 
C) debit Cash and credit Accounts Payable. 
D) debit Cash and credit Accounts Receivable.

Question 17

The credit (right)side of an account shows an increase or decrease depending upon the type of account.

Accepted Answer

A) True 
 B)False

Question 18

Normal balance refers to the positive increase of an account and identifies the side of the account (Debit or Credit)to which this positive balance is recorded.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an expense account?

Accepted Answer

A) Prepaid Insurance 
B) Advertising 
C) Accounts Payable 
D) Cash 
A) Prepaid Insurance 
B) Advertising 
C) Accounts Payable 
D) Cash

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) Stockholders' Equity 
D) Liabilities 
A) Revenue 
B) Assets 
C) Stockholders' Equity 
D) Liabilities

Double-entry accounting requires that every business transaction impact at least two different accounts.

Journalizing is the transfer of information from the general journal to the general ledger.

The account "Cash" began with a zero balance and then had the following changes: increase of $280, decrease of $90, increase of $125 and a decrease of $40. The final balance is a:

An account starting with a number 1 would indicate:

Which is NOT a part of Stockholders' Equity?

A cash payment was made to pay for delivery expenses, but was mistakenly charged to Advertising Expense. What effect will this have on the trial balance?

The third step in recording a transaction in the general journal is to record the:

The ___________ account tracks a company's cumulative earnings less dividends.

The trial balance:

Chronological order dictates the order in which transactions are journalized.

A T-account has a $312 credit balance. This account is most likely NOT:

The posting reference column of the general journal will include the number of the account to which the information is being posted.

Accounts starting with the number 4 would represent:

The first step in analyzing a transaction is to determine:

The ________ keeps a running balance of an individual account.

Mozart Co. sold season tickets for $5,500 on account. The journal entry would be to:

The credit (right)side of an account shows an increase or decrease depending upon the type of account.

Normal balance refers to the positive increase of an account and identifies the side of the account (Debit or Credit)to which this positive balance is recorded.

Which of the following is an expense account?

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

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Analyzing and Recording Business Transactions

Double-entry accounting requires that every business transaction impact at least two different accounts.

Journalizing is the transfer of information from the general journal to the general ledger.

The account "Cash" began with a zero balance and then had the following changes: increase of $280, decrease of $90, increase of $125 and a decrease of $40. The final balance is a:

An account starting with a number 1 would indicate:

Which is NOT a part of Stockholders' Equity?

A cash payment was made to pay for delivery expenses, but was mistakenly charged to Advertising Expense. What effect will this have on the trial balance?

The third step in recording a transaction in the general journal is to record the:

The ___________ account tracks a company's cumulative earnings less dividends.

The trial balance:

Chronological order dictates the order in which transactions are journalized.

A T-account has a $312 credit balance. This account is most likely NOT:

The posting reference column of the general journal will include the number of the account to which the information is being posted.

Accounts starting with the number 4 would represent:

The first step in analyzing a transaction is to determine:

The ________ keeps a running balance of an individual account.

Mozart Co. sold season tickets for $5,500 on account. The journal entry would be to:

The credit (right)side of an account shows an increase or decrease depending upon the type of account.

Normal balance refers to the positive increase of an account and identifies the side of the account (Debit or Credit)to which this positive balance is recorded.

Which of the following is an expense account?

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

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters