Question 1

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False  False

Question 2

When an account payable is paid with cash,the stockholders' equity in the business decreases.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following abbreviations is correct?

Accepted Answer

A) Debit,"Dr"; Credit,"Cd" 
B) Debit,"Db"; Credit,"Cr" 
C) Debit,"Db"; Credit,"Cd" 
D) Debit,"Dr"; Credit,"Cr" 
A) Debit,"Dr"; Credit,"Cd" 
B) Debit,"Db"; Credit,"Cr" 
C) Debit,"Db"; Credit,"Cd" 
D) Debit,"Dr"; Credit,"Cr" D

Question 4

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Accepted Answer

A) all of the information from the journal was correctly transferred to the ledger 
B) all accounts have their correct balances in the ledger 
C) only the journal is accurate; the ledger may be incorrect 
D) only that the debit dollar amounts equal the credit dollar amounts 
A) all of the information from the journal was correctly transferred to the ledger 
B) all accounts have their correct balances in the ledger 
C) only the journal is accurate; the ledger may be incorrect 
D) only that the debit dollar amounts equal the credit dollar amounts

Question 5

Stockholders' equity will be reduced by the amount in the dividends account.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

All of the following accounts are increased with a debit except

Accepted Answer

A) Unearned Revenues 
B) Land 
C) Accounts Receivable 
D) Cash 
A) Unearned Revenues 
B) Land 
C) Accounts Receivable 
D) Cash

Question 8

If the trial balance is in balance,it can be assumed that all journal entries were posted correctly and no errors were made.

Accepted Answer

A) True 
 B)False

Question 9

On November 30,the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment.Prepare the journal entry to correct this situation.

Accepted Answer

The answer of On November 30,the company accountant discovers that...

Question 10

A debit is abbreviated as Db.and a credit is abbreviated as Cr.

Accepted Answer

A) True 
 B)False

Question 11

Which group of accounts is comprised of only assets?

Accepted Answer

A) Cash,Accounts Payable,Buildings 
B) Accounts Receivable,Revenue,Cash 
C) Prepaid Expenses,Buildings,Patents 
D) Unearned Revenues,Prepaid Expenses,Cash 
A) Cash,Accounts Payable,Buildings 
B) Accounts Receivable,Revenue,Cash 
C) Prepaid Expenses,Buildings,Patents 
D) Unearned Revenues,Prepaid Expenses,Cash

Question 12

Even when a trial balance is in balance,there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 13

Revenue accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 14

Calculate the following:
a Determine the cash receipts for April based on the following data:
 $\begin{array}{llcc}
  \text {Cash payments during April   } & \$ 63,000  \
 \text {Cash account balance, April 1 } & 25,500 \
 \text {Cash account balance, April 30 } & 31,750 \
\end{array}$
 b Determine the cash received from customers on account during April based on the following data:

Accepted Answer

a $69,250 $31,750 +

Question 15

Journalize the entries to correct the following errors:
a A purchase of supplies for $500 on account was recorded and posted as a debit to Supplies for $200 and as a credit to Accounts Receivable for $200.
b A receipt of $2,500 from Fees Earned was recorded and posted as a debit to Fees Earned for $2,500 and a credit to Cash for $2,500.

Accepted Answer

The answer of Journalize the entries to correct the following...

Question 16

The chart of accounts for the Corning Company includes the following:
 
Page 5 of the journal contains the following entry:
 
- What is the posting reference that will be found in the salaries expense account?

Accepted Answer

A) 5 
B) 11 
C) 54 
D) 21 
A) 5 
B) 11 
C) 54 
D) 21

Question 17

A credit balance in which of the following accounts would indicate a likely error?

Accepted Answer

A) Fees Earned 
B) Salary Expense 
C) Common Stock 
D) Accounts Payable 
A) Fees Earned 
B) Salary Expense 
C) Common Stock 
D) Accounts Payable

Question 18

Lewis Company has a condensed income statement as shown:
 $\begin{array}{|l|r|r|}
\hline & {\text { Year 2 }} & {\text { Year 1 }} \
\hline \text { Sales } & \$ 178,400 & \$ 162,500 \
\hline \text { Wage expenses } & \$ 100,000 & \$ 92,500 \
\hline \text { Rent expenses } & 33,000 & 30,000 \
\hline \text { Utilities expenses } & 30,000 & 25,000 \
\hline \text { Total operating expenses } & \$ 163,000 & \$ 147,500 \
\hline \text { Net income } & \$ 15,400 & \$ 15,000 \
\hline
\end{array}$ REQUIRED:
Prepare a horizontal analysis of Lewis Company's income statements.Comment on the trends,both favorable and unfavorable.

Accepted Answer

While the trend in sales reven

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Liability accounts are increased by debits.

When an account payable is paid with cash,the stockholders' equity in the business decreases.

Which of the following abbreviations is correct?

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Stockholders' equity will be reduced by the amount in the dividends account.

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

All of the following accounts are increased with a debit except

If the trial balance is in balance,it can be assumed that all journal entries were posted correctly and no errors were made.

On November 30,the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment.Prepare the journal entry to correct this situation.

A debit is abbreviated as Db.and a credit is abbreviated as Cr.

Which group of accounts is comprised of only assets?

Even when a trial balance is in balance,there may be errors in the individual accounts.

Revenue accounts are increased by credits.

The chart of accounts for the Corning Company includes the following: Page 5 of the journal contains the following entry: - What is the posting reference that will be found in the salaries expense account?

A credit balance in which of the following accounts would indicate a likely error?

The chart of accounts is designed to

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

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Analyzing Transactions

Liability accounts are increased by debits.

When an account payable is paid with cash,the stockholders' equity in the business decreases.

Which of the following abbreviations is correct?

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Stockholders' equity will be reduced by the amount in the dividends account.

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

All of the following accounts are increased with a debit except

If the trial balance is in balance,it can be assumed that all journal entries were posted correctly and no errors were made.

On November 30,the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment.Prepare the journal entry to correct this situation.

A debit is abbreviated as Db.and a credit is abbreviated as Cr.

Which group of accounts is comprised of only assets?

Even when a trial balance is in balance,there may be errors in the individual accounts.

Revenue accounts are increased by credits.

The chart of accounts for the Corning Company includes the following: Page 5 of the journal contains the following entry: - What is the posting reference that will be found in the salaries expense account?

A credit balance in which of the following accounts would indicate a likely error?

The chart of accounts is designed to

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

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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