Exam 2: Analyzing Business Transactions

For a T account,an account balance is the difference in total dollars between total debit footings and total credit footings.

To find an explanation of a transaction,one should look at the

Which of the following accounts is decreased with a credit?

Harris Corporation provided monthly waste-removal services for Goble Corporation,which resulted in the following transactions in Harris's records: Using T accounts,prepare the corresponding entries in Goble's records.

Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal?

Revenues have a normal credit balance.

Which of the following accounts is increased with a debit?

The primary purpose of the trial balance is to test the

Which of the following accounts has a normal debit balance?

Using the alphabetical list of account balances presented below,all of which are normal,prepare a trial balance for T.and C.Corporation at June 30,2010,in proper order.Compute the balance of the Cash account. Accounts Payable \ 140 Accounts Receivable 280 Cash ? Common Stock 200 Equipment 400 Office Expense 180 Retained Earnings 240 Service Revenue 300

Which of the following statements is not necessarily true about a journal entry?

Which of the following transactions increases both assets and stockholders' equity?

When a business records revenue before it has been earned,it has violated the measurement issue of

Here is the trial balance for McLeary Corporation: McLeary Corporation Trial Balance January 31, 2010 Cash \ 3,000 Accounts Receivable 2,000 Art Supplies 3,000 Office Supplies 5,000 Prepaid Rent 7,000 Prepaid Insurance 5,000 Art Equipment 5,000 Office Equipment 3,000 Accounts Payable \ 10,000 Common Stock 5,000 Retained Earnings 5,000 Dividends ? Advertising Fees Earned ? Wages Expense ? Utilities Expense 5,000 Telephone Expense 3,000 \A \B If the balance of the Dividends account were $36,000 and the balance of the Wages Expense account were $5,000,what would be the amount of B?

Given the following ledger account and postings,complete the Balance column.Assume no previous postings in the account.

Generally,before Accounts Receivable is debited,it is credited.

When revenue has been earned,no entry is recorded until the related cash has been collected.

Payment on a portion of Accounts Payable will

The accounts in a chart of accounts are normally listed in alphabetical order.

A dividend will reduce which of the following accounts?