Question 1

Which of the following balances is always due to an error?

Accepted Answer

A)  Office Equipment - credit balance of $500 
B)  Retained Earnings - debit balance of $1,000 
C)  Dividends - debit balance of $2,500 
D)  Accounts Payable - debit balance of $600 
A)  Office Equipment - credit balance of $500 
B)  Retained Earnings - debit balance of $1,000 
C)  Dividends - debit balance of $2,500 
D)  Accounts Payable - debit balance of $600

Question 2

The payment for the monthly rent will require which of the following entries?

Accepted Answer

A)  debit Cash and debit Rent Expense 
B)  credit Cash and credit Rent Expense 
C)  debit Rent Expense and credit Cash 
D)  credit Rent Expense and debit Cash 
A)  debit Cash and debit Rent Expense 
B)  credit Cash and credit Rent Expense 
C)  debit Rent Expense and credit Cash 
D)  credit Rent Expense and debit Cash

Question 3

The erroneous moving of an entire number one or more spaces to the right or left,such as writing $85 as $850,is called a transposition.

Accepted Answer

A) True 
 B)False

Question 4

Richardson Company has a condensed income statement as shown. ​
  Using horizontal analysis,calculate the amount and percent change for sales.Round percentages to one decimal place.

Accepted Answer

A)  $15,500,19.6% 
B)  $(15,500),(10.3)% 
C)  $15,500,10.3% 
D)  $(15,500),(9.4)% 
A)  $15,500,19.6% 
B)  $(15,500),(10.3)% 
C)  $15,500,10.3% 
D)  $(15,500),(9.4)%

Question 5

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following accounts are debited to record increases?

Accepted Answer

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

Question 7

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Accepted Answer

A) True 
 B)False

Question 8

Analyze the effect of the following transactions on the accounting equation.
​
   Some of the possible effects of a transaction on the accounting equation are listed below:
​
   Put the appropriate letter next to each transaction.

Accepted Answer

The answer of Analyze the effect of the following transactions...

Question 9

Journalizing always eliminates fraudulent activity.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Joshua Scott invests $40,000 into his new business.How would this transaction be entered in the journal in good form?

Accepted Answer

A)  ​Cash 40,000
Common Stock 40,000
Issued common stock for cash. 
B)  ​Accounts Receivable 40,000
Common Stock 40,000
Issued common stock for cash. 
C)  ​Common Stock 40,000
Cash 40,000
Issued common stock for cash. 
D)  Loans Payable 40,000
Cash 40,000
Issued common stock for cash. 
A)  ​Cash 40,000
Common Stock 40,000
Issued common stock for cash. 
B)  ​Accounts Receivable 40,000
Common Stock 40,000
Issued common stock for cash. 
C)  ​Common Stock 40,000
Cash 40,000
Issued common stock for cash. 
D)  Loans Payable 40,000
Cash 40,000
Issued common stock for cash.

Question 12

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 13

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down,with the remainder to be paid later.The correct entry would be

Accepted Answer

A)  Equipment 2,250
Cash 2,250 
B)  Cash 2,250
Accounts Payable 6,250
Equipment 8,500 
C)  Equipment Expense 8,500
Accounts Payable 2,250
Cash 6,250 
D)  Equipment 8,500
Accounts Payable 6,250
Cash 2,250 
A)  Equipment 2,250
Cash 2,250 
B)  Cash 2,250
Accounts Payable 6,250
Equipment 8,500 
C)  Equipment Expense 8,500
Accounts Payable 2,250
Cash 6,250 
D)  Equipment 8,500
Accounts Payable 6,250
Cash 2,250

Question 14

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Question 15

In which order are the accounts listed in the chart of accounts?

Accepted Answer

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

Question 16

A debit signifies a decrease in

Accepted Answer

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

Question 17

Which of the following groups of accounts increase with a credit?

Accepted Answer

A)  common stock,revenues,expenses 
B)  assets,common stock,revenues 
C)  liabilities,common stock,revenues 
D)  none of these 
A)  common stock,revenues,expenses 
B)  assets,common stock,revenues 
C)  liabilities,common stock,revenues 
D)  none of these

Question 18

The normal balance of revenue accounts is a credit.

Accepted Answer

A) True 
 B)False

Question 19

The posting process will include the transfer of which of the following data from the journal to the account?

Accepted Answer

A)  date,amount (debit or credit) 
B)  date,amount (debit or credit),journal page number 
C)  amount (debit or credit),account number 
D)  date,amount (debit or credit),account number 
A)  date,amount (debit or credit) 
B)  date,amount (debit or credit),journal page number 
C)  amount (debit or credit),account number 
D)  date,amount (debit or credit),account number

Question 20

The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented.Assume that the dollar amounts and the descriptions of the entries are correct.
​
​
   ​
   ​
   ​
   Required: If you assume that all journal entries have been recorded correctly,use the above information to:
(1)Identify the postings to the general ledger that were made incorrectly.
(2)Describe how each incorrect posting should have been made.

Accepted Answer

(1)The bookkeeper incorrectly posted the

Exam 2: Analyzing Transactions

Which of the following balances is always due to an error?

The payment for the monthly rent will require which of the following entries?

The erroneous moving of an entire number one or more spaces to the right or left,such as writing $85 as $850,is called a transposition.

Richardson Company has a condensed income statement as shown. ​ Using horizontal analysis,calculate the amount and percent change for sales.Round percentages to one decimal place.

Liability accounts are increased by debits.

Which of the following accounts are debited to record increases?

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Analyze the effect of the following transactions on the accounting equation. ​ Some of the possible effects of a transaction on the accounting equation are listed below: ​ Put the appropriate letter next to each transaction.

Journalizing always eliminates fraudulent activity.

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

Joshua Scott invests $40,000 into his new business.How would this transaction be entered in the journal in good form?

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down,with the remainder to be paid later.The correct entry would be

Consuming goods and services in the process of generating revenues results in expenses.

In which order are the accounts listed in the chart of accounts?

A debit signifies a decrease in

Which of the following groups of accounts increase with a credit?

The normal balance of revenue accounts is a credit.

The posting process will include the transfer of which of the following data from the journal to the account?

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

Richardson Company has a condensed income statement as shown. Using horizontal analysis,calculate the amount and percent change for sales.Round percentages to one decimal place.

Analyze the effect of the following transactions on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.