Question 1

The balance of the account can be determined by adding all of the debits,adding all of the credits,and adding the amounts together.

Accepted Answer

A) True 
 B)False

Question 2

The normal balance of the dividends account is a debit.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not true with a double-entry accounting system?

Accepted Answer

A)  The accounting equation remains in balance. 
B)  The sum of all debits is always equal to the sum of all credits in each journal entry. 
C)  Each business transaction will have two debits. 
D)  Every transaction affects at least two accounts. 
A)  The accounting equation remains in balance. 
B)  The sum of all debits is always equal to the sum of all credits in each journal entry. 
C)  Each business transaction will have two debits. 
D)  Every transaction affects at least two accounts.

Question 4

Nebraska Technologies has a condensed income statement as shown:
​
   REQUIRED:
Prepare a horizontal analysis of Nebraska Technologies' income statements.Comment on the trends,both favorable and unfavorable.

Accepted Answer

@#IMG-DLM& The trend in sales revenue is unfavorab

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

When a transposition error is made on the trial balance,the difference between the debit and credit totals on the trial balance will be

Accepted Answer

A)  zero 
B)  twice the amount of the transposition 
C)  one-half the amount of the transposition 
D)  divisible by 9 
A)  zero 
B)  twice the amount of the transposition 
C)  one-half the amount of the transposition 
D)  divisible by 9

Question 7

A cash payment is recorded in the cash account as

Accepted Answer

A)  neither a debit nor a credit 
B)  a credit 
C)  a debit 
D)  either a debit or a credit 
A)  neither a debit nor a credit 
B)  a credit 
C)  a debit 
D)  either a debit or a credit

Question 8

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Which of the following errors could cause the trial balance totals to be unequal?

Accepted Answer

A)  posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted 
B)  failure to record a transaction or to post a transaction 
C)  recording the same transaction more than once 
D)  recording the same erroneous amount for both the debit and the credit parts of a transaction 
A)  posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted 
B)  failure to record a transaction or to post a transaction 
C)  recording the same transaction more than once 
D)  recording the same erroneous amount for both the debit and the credit parts of a transaction

Question 11

A chart of accounts is a listing of accounts that make up the journal.

Accepted Answer

A) True 
 B)False

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

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

Accepted Answer

A) True 
 B)False

Question 14

In which of the following types of accounts are increases recorded by credits?

Accepted Answer

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

Question 15

Journal entries include both debit and credit accounts for each transaction.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the statements below is not a purpose for the journal?

Accepted Answer

A)  to show increases and decreases in accounts 
B)  to show chronological order of transactions 
C)  to show a complete transaction in one place 
D)  to help locate errors 
A)  to show increases and decreases in accounts 
B)  to show chronological order of transactions 
C)  to show a complete transaction in one place 
D)  to help locate errors

Question 17

Debits will increase unearned revenues and revenues.

Accepted Answer

A) True 
 B)False

Question 18

In the chart of accounts,the balance sheet accounts are normally listed in which order?

Accepted Answer

A)  liabilities,assets,stockholders' equity 
B)  assets,liabilities,stockholders' equity 
C)  stockholders' equity,assets,liabilities 
D)  assets,stockholders' equity,liabilities 
A)  liabilities,assets,stockholders' equity 
B)  assets,liabilities,stockholders' equity 
C)  stockholders' equity,assets,liabilities 
D)  assets,stockholders' equity,liabilities

Question 19

The post reference notation used in the journal is the page number.

Accepted Answer

A) True 
 B)False

Question 20

When a business receives a bill from the utility company,no entry should be made until the invoice is paid.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

The balance of the account can be determined by adding all of the debits,adding all of the credits,and adding the amounts together.

The normal balance of the dividends account is a debit.

Which of the following is not true with a double-entry accounting system?

Nebraska Technologies has a condensed income statement as shown: ​ REQUIRED: Prepare a horizontal analysis of Nebraska Technologies' income statements.Comment on the trends,both favorable and unfavorable.

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

When a transposition error is made on the trial balance,the difference between the debit and credit totals on the trial balance will be

A cash payment is recorded in the cash account as

A credit to the cash account will increase the account.

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.

Which of the following errors could cause the trial balance totals to be unequal?

A chart of accounts is a listing of accounts that make up the journal.

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

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

In which of the following types of accounts are increases recorded by credits?

Journal entries include both debit and credit accounts for each transaction.

Which one of the statements below is not a purpose for the journal?

Debits will increase unearned revenues and revenues.

In the chart of accounts,the balance sheet accounts are normally listed in which order?

The post reference notation used in the journal is the page number.

When a business receives a bill from the utility company,no entry should be made until the invoice is paid.

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising 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

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

Filters

Nebraska Technologies has a condensed income statement as shown: REQUIRED: Prepare a horizontal analysis of Nebraska Technologies' income statements.Comment on the trends,both favorable and unfavorable.